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22
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J[\VEST
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GA
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I
ON
OF ECONOMIC
CRIMES BY CHARTERHOUSE
BANK
L
T
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AND
RELATED COMPANIES
'
Ne
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h
~
o'
,
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.
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CC:
:
?C r
ec
e
ipt of y
o
u
r
le
t
ter date
d
Decembe
r
15
,
2004 an
d n
ote wi
th
conce
rn th
e
hur
d
les y
ou
(
:H
C
be
ing
in ac
c
e
ss
ing information
fro
m
Cha
li
erhouse
b
an
k
.
A
l
tho
u
gh
-
we b
el
ie
v
e thut the
v
arious option
s
refe
rred t
o
in
yo
ur J
e
tt
e
r m
ay "
b
e
frau
g
ht
w
ith
c
i
e
!
c
\
ys
a
nd
c
o
unter
court
actions"
we
none
th
eles
s
are
o
f
th
e
view
th
a
t
it
wo
uld
b
e
l
1
p:
J
r
oj)r
i
C
1
lc for yo
u to
s
eek the opin
i
on
of
th
e Attorney
G
enera
!
in respec
t
o
f th
e h
urdl
es
y
o
u
a
r
c enco
ur
;:c
:'
in
g
in the course o
f
you
r
investiga
ti
o
n
e
speci
a
ll
y
ha
v
ing
r
eg
ard t
o
th
e
pow
e
rs
b
e
s
t
owe
d
upon
y
o
u by the statu
t
es
.
c
--
Ne
e
d
l
ess
to s
ay
, the Central
Bank wil
l
e
n
de
il
vo
ur
t
o fol
l
ow
'
u
p
w
ith
th
e ba
nk th
e
m
u
tt
e
r
s
r
i'
.
l
!sc
d i
n
y
ou
r
l
e
tter
i
n so f
a
r as they
r
ela
t
e
t
o co
m
p
l
i
ance
w
ith th
e
C
e
ntral B
an
k
o
f Ken
y
a
A
C
l
,
Bll
r
:
k
in
S
Ac
t
a
nd the R
eg
ulations
issued the
r
eu
nd
e
r
a
s we
ll a
s
th
e
Pru
de
nti
a
l
R
eg
ulations
is
sued by t
j
'~c
C
e
n
t
r
a
l
B
a
n
k
.
To fac
i
litute this
,
we wo
ul
d
app
r
ec
i
a
te
yo
w'
ava
ili
nq
to us
a
n
y
;xklit
i
oi
1
i:d
i"fc
l'
~
1
ill
i
i
on
o
f f
Cl
i
l
ur
e
/
r
c
fusal to pr
ov
ide
da
t
a by
t
h
e
C
h
a
li
er
h
o
u
se
ba
nk th
a
t
yo
u
wou
ld
w
.
sh to d
r
aw
to
o
u
r a
tte
nti
o
n so as to en
a
b
l
e us de
m
an
d
the s
a
me
f
r
o
m th
e
in
s
titution
.
You ,~:,,/
'
'
.'..si:
»
i
;(;1
8
,
ho
w
e
ve
r
,
t
h
a
t
the
inf
o:'ma
ti
o
n
gathered b
y
t
he Central Bonk can only
be i.scd
k
.
:·
"
.
ir
regu
la
to
r
y
functi
o
n
u
nd
e
r
t
he
B
a
nking
Act
arid
canno
t
be availe
d t
o yo
u
'
i
n
viev
,
o
f ~:~
(
;C()iISt
r
i:l
ii
it
s imp
os
e
d
o
n
t
h
e Ba
nk
u
nder
the
Ac
t
wit
h
reqa
r
d
t
o dis
c
l
os
u
re
o
f
i
:,:I
)
:
'
iL'i:i(
)
i~
l
)i
,
'
l
(
i
:
n
c
d
i
n
t
he co
urse
o
f i
n
sp
e
c
ti
o
'I
S
.
c
2
,=
-'
:
'-
.
c
:
:
.
::
.
_
..
.
~,
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_
<-
--
~
_
..~.
_
-
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.
.
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•
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CIVIL SUIT NO
.
329
OF
2006
...
~.
•.
.
;
.
;
,
"
f)
CE:
'
:
T:
:
:
::
'
.
:
"
:::
,,,
3
A~K
O
F
KE~YA
FIRST
'
DEFENDANT
:
\
,
:
I:
:
\
J
:Sr;:::j:
:
::
'
?O
R
F
I::
-
IA~CE
SECOND DEFENDANT
ROS
:
:
:
:
':>
::
'
:
'
:
:-
.
:
0
THIRD
DEFENDANT
V
E
RSU
S
'
:
;
REPLYING
AFFIDAVIT
I
,
GER.
:
'
-
+D
ARITA NY
AOMA
of
C
e
ri
t
.
a
l B
an
k
Building
and of Post Office
,
B
o
x
N1
.
:
.
.
m
be
r
6000
0
Na
irobi
in the
Republic
of Kenya
do hereby
make
o2
<
h
3
,
:::
;('
.
s
ta
t
e
a
s
follow
s
:
-
1.
7
HAT,
I am
th
e f
irst D
e
feric
.
a
n t
'
s Director,
Banking
Supervision
:
:
>:
:
p
2
.
r
t
m
c
n
t a
r
i
d
I
r
u
n
du
.
y
au
t
horised
by
it
to
swear
this
;
·
,
.
~-f
id
2lv
i
t
on its be
r
ra
l
f
and
c
on
f
irm
t.hat
,
I am fully conversant
.
·.<~
ht
he facts
depo
ned
to
i
n this
affida
v
it
and
can
positively
~\
.
.
.
c
a
r
t
he
re
t
o
f
rom
'
my
p
e
rs
o
na
l
knowledge.
TtI
AT,
I
ha
ve
read and
un
d
e
rstood
the conte
n
ts
of the Chamber
Sur
nrn
o
n s d
at
ed
the 23
rd
d
ay of
Jun
e
,
2006 and the affid
a
vit in
s
u
ppo
rt
t
h
e
r
e
of
swor
n
by o
n
e
S
a
njay
Sh
a
h
on the same
dated
.i
nd
s
t
a
te t
hat I mak
e
t
his
affidavit i
n r
e
sponse
t
h
e
reto,
TH
AT,
the f
i
r
s
t
D
e
fendant
i
s
a
s
tatutory
bod
y
established
under
:
-
,'
:
:p
r
c
vi
s
io
r
;
s c:
S
ec
t
i
o
n
3 of the
Cent
r
al
B
a
nk
o
f K
e
n
ya
A
c
t
,
:
.:
-
,<~
:
c,
~
~0
:
:
'
o
f tr.e
L
aws
of Kenya
and
o
n
e
o
f i
ts
p
r
in
c
ip
a
l
,',
:
J.:c;
C
':S
i
s tc
:-
cg
-
ula
t
e the op
e
r
a tion
s o
f a
l
l co
mm
er
c
ia
l
banks
i
n
"
,
-~---'----
'
--
----
.•
....
=
--
~
'.
",,
-
-
•
.
•
'
-
..
"
-=-
...
;
.
..-
-
-
-
-
-
=
-
-------
-
-
------------
-
/
debts.
/
>
:"
:
~\
'
e
s
trie r
egular
i
nspectio
-;
of t
he
ope
r
a
t
i
ons
a
nd
a
f
fa
irs
of
.
-
-:
..
:
:
:
c
:·
.
..
~:
.
c
J
b
an
.
cs
L:C
en
sur
e
:
h
a
t
the
barik
s
co
m
p
l
y
with
the
=;:
"
:
'
:
:
s
~
o
:-
,s of 2
J
~ ~11
e
~
2
.
-,Vsapp
l
icable
t
o
t
hei
r
o
per
at
ions
together
'.
--
:
:~-:
.
ccc;::1i:1ist.ra:ive guideli
ne
s
is
s
u
ed
b
y t
h
e
Central
Bank,
as
.
.
.
.
.
..
:
J
.
]
:
~
;
:
'
:
.
?
,"
l
',
during
t~1e cour se o
f a
re
gu
l
ar
inspection
of the Plaintiff
,
·
.:
.
.
.
.
.
e
r
t
aken
by
the
fi
rs
t
D
c:
enda
n
t's
Banking
Supervision
:
=
:C
:
:
2
.
rt
m
en
t
in A
ug
u
s
t
,
2004
p
ursuant
to the
first
D
e
fendant
'
s
s
.
a
;
i
to
r
y
m
a
n
da
t
e
u
nder
Sec
t
ion
32( 1) of the
Banking
Act,
a
:
~
i
.
:
:T
.
be
r
of vio
l
a
ti
o
ns
of
t
he Ba
r
.k
ir
ig
Act were cstabli
s
h-r! viz :_
.
(a)
L
e
n
di
ng
to both
N
a
kumatt
Holdings
Limited
and
Trito
n
P
e
trole
um
Limited
in excess
of the single
borrow
er
l
i
mit
o
f 25
%
of its core capital
.
(
c
)
L:volveme
nt
in
in
sid
e
r
l
e
ridrn
g
withou t
a
dequate
secu
r
it
y
and
a
b
o
v
e
the prescribed
limit
of
20%
of its
C
ore c
api
tal
.
(
c
)
Inadequat
e
pr
o
vis
i
ons
for
bad
and
doubtful
(
d
)
Fail
ur
e
b
y
the
Pl
a
i
ntiffs
management
to submit
a
ccurate
returns
to
t
he
first D
e
fendant
.
(
a
)
r
\
number
of
custome
-
account
s
la
c
ked
account
c,
;
;c
r:
:
.
::
-
-
.
g
d
o
cur:--
.
:
:ntation
as
per
the
kn
o
w
your
C
u
st
o
mer
proc
e
d
u
res.
~"
Ij
i/.
.
.
T,
r
o
ilow
i
ng
these
f
i
nd
ing
s,
the managem
e
nt
of the
Pl
a
intiff
-
,
:
>
-
~~::
(
;
:,
t
r,
e v
i
orat
.
ons
where
u
pon
the f
irst
D
e
fe
nd
a
nt
imp
o
sed
a
nd
t
h
e
P
l
ain t
i
f
fs
Ma
n
a
ging
ac
ti
o
n
woul
d
b
e
underta
.
ken
::
,
:
,
~
iT.
e
d
y
the
vi
o
l
a
t
.or
,
s.
(
,
?;
;
:::
•
.:
~
T
,
t
r
ie firs
:
d
efe
r
id
arit
un
de
r
too
k
a f
o
l
l
ow-up
inspection
In
:>
:·
~
:"
.
:2
~~,
2
0
0
5
".
:
0
es
tablis
h
t
.
i
e
s
t
atus
o
f c
o
mplian
ce
and
the
;
:
.
. z:
.
:
..•
-
:::i
:m c sta
b
i
i
s
ne
d
tha
t
r
em
edi
a
l
acti
o
n
had
be
e
n
taken
on
IT
:
;
)S
:
0
:-
the vi
ol
ati
o
n
s
w
i
t
h the
e
xception
of those
relating
to the
"
;
~.
:"
lj
;
.
!
)
you
r cus
t
ome
r
p
r
o
c
e
dur
es
'
.
8
.
T3AT,
as a
r
es
u
lt
of the reme
d
i
a
l
action
taken
by the Plaintiff,
c:
-.
(
~
f
ir
s
t
Defe
r
id
a
.
nt
recomme
n
ded
and
received
the
second
Dc
f
erid
a
rr
t
's
ap
p
r
ov
a
l
to renew
t
he Plaintiff's
license
for the year
.'
9
,
t
h
e
f
i
r
s
t
D
e
f
e
nda
n
t
u n
c
e
rt
oo
k
a
noth
e
r
inspe
c
tion
of the
.
•
:
'
>
,
:
;~j:
'
[
i
n
O
c
tobe
r
,
20
0
5
wh
.
c
h
reve
a
led
i
sornc
weaknesses
Y
.
i
:
:
:
::
:
-:
.
.
the
o
p
e
r
a
ti
o
n
s
of th
e P
l
a
intiff
including
non
-
compliance
(
<;
", ::.
,
'
~
:~e
regu
l
a
tio
n
e
n
cl
as
s
if
i
c
ation
o
f loan
s
and
th
e
'Know
!
.
J'j
,
'
.
U
·
c
u
sto
m
e
rprocedur
e
s
'
;
T
h
e
inspection
report
was
availed
tc
·
c;
--
.
c
Pl
aint
if
f
w
h
o
accept
ed
i
t
s
f
indings
and
undertook
to
r
c
.
i
.
c
c.y
t
h
e
v
i
olatio
n
s.
10
,
T~bJ
::
,
i
:::
C
f
i
rst
Defe
n
dant
u
r.dcrtoo
k
a
n
o
t
h
e
r
i
ns
p
ec
tion
in
'
.
[
'
"
1
.
/
::
-
:
:
,
2
0
0
6
which
revealed
t
he
fcllow
ing
:-
~
•
•
.
•
•.
•J";,
_
'
•
_
_
•
."
."..-
----
---
--
-~.
_
.
•.
--
_
..•
.
•..
-_
.
_
-
-
_
..
_
-
-_
.
_
.
.
_
_
.
-
-..
-
..
-
.
t
.
.
T
•
(
0
)
ACCO'-
.
'
"
J
.
" oper..ng
for
ms
of
45 custome
r
ac
c
ounts
we
r
e not availed.
1
i
(c)
Ti
le
engclger
:
.
l
cnt
i
n
o
f
f
sh
o
r
e
mo
n
ey
transfers
inv
o
lving
sp
L
t
in
g
of
t
r
an
s
actio
ns
was found.
(
ci
)
C
i
-
:
c:;
,
ue
s
d
r
a
w
n
on a cu
st
o
mer's
account
were
cl
e
ar
e
d
t
h
r
o
u
g
h
a lawye
r
'
s
c
l
ient acc
o
unt
.
(
c
)
Th
e
s
a
me
1
2
,
'
,vy
e
r'
s
c
li
e
n
t
a
cc
o
unt
w
as
being
used
as
a tr
ad
ing
a
ccount
for some customers.
1
C
o
.
:
[
I
V
.
:
.
T,
t
he
dr
a
ft
i
ns
pec
ti
o
n
re
p
o
rt
wa
s
f
o
r
w
ard
e
d
b
y
the first
0
c:
:
'
:
e
r
"
da
nt
to
t
he
Pl
a
intiff
on 2
1
s
t
June,
2006 for comments
by
t
.
.
...
<;
;
n-:2,
n
ag
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