Detectives made a step in their investigation of Ksh 34 billion fraud case involving former Imperial Bank managing director Abdulmalek Janmohamed, after they discovered Ksh 3.4 billion in eight accounts linked to him.
Janmohamed, who passed away in September 2015, was accused of robbing the bank Ksh 34 billion in a span of 13 years.
A report by Business Daily on Tuesday, February 25, stated that the Kenya Deposit Insurance Corporation (KDIC) informed the court that the eight accounts were opened using fictitious names. That was a month before the bank was under receivership.
"The bank claims jointly and severally against the deceased estate the sum of Sh3.4 billion which amount was illegally and fraudulently received,” KDIC documents stated.
Evidence tabled before the court claimed that the deceased, alongside his associates orchestrated the embezzlement of the funds by using 12 companies to open accounts at Imperial Bank, where they deposited massive amounts which were transferred before the eight accounts were closed.
The scandal roped in the current bank's MD Naeem Shah and his deputy James Kaburu, who were accused of transferring the money.
Shah and Kaburu, despite disclosing the fraud to Central Bank of Kenya (CBK) were also put under investigation.
The duo confessed to making the illegal transfers but argued that they were operating under the instructions of Janmohammed.
The stolen money was mainly used to invest in real estate properties.
The deceased had also invested in sugar, insurance, and security companies in Kenya.
His cash was distributed in three other banks, with one bank account saving the cash in foreign currency.
