EXPOSED: Secret Companies of Chase Bank Owners

Shareholders of the embattled Chase Bank Limited have now been linked to offshore tax havens, a practice associated with tax evasion and individuals concealing their wealth.

It is reported that three companies; Rinascimento Global Ltd, Balst Investment Holdings and Festuca Investments Ltd, which collectively own 36.4 per cent shareholding in the bank are registered through shell companies in Mauritius, Cyprus and the Isle of Man in Europe.

In a report by the Standard, former Chase Bank chairman, Zafrullah Khan is also said to have channeled his ownership of the institution through shell companies.

Other foreign companies that have a stake in Chase Bank include Shegas Ltd, that owns a 13.9 per cent stake, German Investment and Development Corporation which has 6.6 per cent, while another unidentified French company owns 10.9 per cent stake.

According to Philip Muema, founder of Nexus Business Advisory, using shell companies is a smart way for investors to avoid high taxes in their home countries. He added that the companies are usually registered in tax-friendly jurisdictions to minimise their payable taxes and "maximise shareholder wealth".

A shell company only exists on paper without any assets and is formed purely for financial manouvers such as tax evasion.

The new revelations are emerging after the Central Bank of Kenya on Thursday placed Chase Bank under receivership for failing to meet its financial obligation.

Read also: Chase Bank Placed Under Receivership

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