PETER GEORGE ODHIAMBO

P.O. BOX 2820 - 00200 CITY SQUARE. NAIROBI

EMAIL: odhiambopg@centralbank.go.ke
TEL:+254 020 2861059
CEll: +254723 322887

14th July 2006

Hon. Martha Karua, EGH, MP

Minister for Justice and Constitutional Affairs
Co-operative House Building
Haile Sellasie Avenue
Nairobi

Dear Madam,

RE: CHARTERHOUSE BANK AFFAIR

I refer to the above and to our Tuesday meeting, which was also attended by the Chairman of
the Kenya National Commission on Human Rights, Mr. Maina Kiai and Mr. Titus MWirigi.

I take this opportunity to thank you very much for the audience you accorded us and to the
very positive concern you had on both the Charterhouse Bank scandal and to my personal
safety.

As advised, the KNCHR has written to the Police Commissioner, Brig. Hussein Ali, seeking
explanations for my last Friday's harassmem by his police officers and demanding a guarantee
from his office for my personal safety .
.J
I must also confirm that am with you, and all other Kenyans who have demonstrated the will,
and by action to set our country free from corruption. Should you therefore require my
assistance, in any way, in getting to the bottom of this scandal, kindly feel free to get in touch.

As explained in the meeting, my experience at Charterhouse Bank and as their internal auditor
convinced me that the Bank was not established to carry out legitimate banking business. In
view of this, I became suspicious of over 70% of the total number of accounts maintained by
this Bank. In this regard, I provided KRA, through one of their senior officers by the name of
Doreen the whole database of Charterhouse Bank's accounts totaling over 200. Within this
list, I highlighted 85 accounts, which from my analysis had either not paid tax at all or had
deliberately declared wrong business turnovers in order to pay less tax. This was with the
understanding that the rest of the accounts be scrutinized for tax evasion. My source from KRA
confirmed to me that they have assessed quite a quite a number of accounts outside the 85
that I highlighted, though they have not exhausted the list.
 KRA then promised to compensate me under their nationally advertised scheme. which states as
under:

Kenya Revenue Authority wishes to draw the public's attention to a scheme that rewards
persons who provide information as below:
• Information leading to the identification of hitherto undisclosed taxes _ a reward
amounting to I % of the tax identified up to a maximum of Kshs. 100, 000/=
• Information leading to the recovery of hitherto undisclosed taxes - a reward amounting to
3% of the taxes collected.
th
On 5 May 2004, they paid me cash Kshs.200. 000/= which they described as a token of
appreciation for providing very useful information with a confirmation that my rightful dues
would follow soon. This was never to be the case. After over one year of several vigorous
chasers they paid me by cheque a paltry Kshs. 250,279/20 on 13th June 2005. This payment
was described as my dues for recoveries made from one of the accounts on the list. Subsequent
follow-ups and visits to KRA have yielded no fruits even after several meetings with their .
Chairman. Mr. Mwangola. the Commissioner General Mr. Waweru and the Deputy
Commissioner Mr. Nduati

Mheshimiwa, I fail to understand why KRA cannot zero in on these accounts as a matter of
urgency. They have been sitting on a potential tax recovery of over Kshs 20 billion while the
country is continuously begging for donor funds all over the world. Furthermore the exposure
of these criminals will enable other arms of the Government put to an end these malpractices.

I therefore kindly request you to prevail upon the Minister for Finance, Hon. Amos Kimunya to
address this issue with his officers at KRA.

Enclosed please find copies of the follOWing:

• A list of the suspected 85 accounts of Cha rterhouse Bank

• A copy of the KRA payment voucher for Kshs. 200,000/= dated 5th May 2004
• A copy of cheque no.022625 for Kshs 250.279/20 in favour of Peter George Odhiambo
• Copy of KRA's newspaper advertisement on their information reward scheme

Yours sincerely

/)1, {~'c~ 0~
Peter George Odhiambo

CC Mr. Maina Kiai,

Chairman
Kenya National commission on Human Rights

2
 PRIVATE AND CONFIDENTIAL

No of Turnover
Sr.No
Account name Alc's
1 (Millions)
Africa Waste Paper Ltd
1 288
2 Ahmed Abdullahi Ali
3 1 165
Alloy Steel & Castings Ltd
1 681
4 A uto Import Ltd
5 1 101
Brand Imports
3 966
6 Caruo Distributors Ltd
·1 400
7 Cemoack Limited
8 2 1,022
Commercial CorPoration (K) Ltd
1 865
9 Communication Carrier Ltd
10 1 166
Compulynx Ltd
11 1 284
Copy Cat Ltd
12 1 119
Creative Innovations Ltd
4 1,199
13 Crescent Constrution Co. Ltd
1 165
14 Crucial Properties Ltd-Ksh AlC
1 2,000
15 D.Shah
16 1 423
D.Shah & Mr.R Vithlani
1 36
17 Dalbit Investments Ltd
1 4,000
18 Dalbit Petroleum Ltd
1 200
19 Drive In Tvre Centre
1 179
20 East African FoUmdry Works IKI Ltd
1 433
21 Ehsani 111 Abbas
1 153
22 Ehsani Hamed & S,R,Shah
1 10
23 Epsom Holdings Corporation Ltd
1 115
24 Farm Tea Packers
1 110
25 Fones Direct Ltd
1 249
26 Green Comer Cafe Ltd
1 150
27 Greenhills Investments Ltd
1 415
28 Hotnet Ltd
1 150
29 Jak Industries Ltd
1 201
30 Jakharia Packers
1 457
31 Jamachar (KfLtd
1 254
32 John Harun Ltd
1 160
33 Jubilee Tvres Ltd
1 153
34 K S Brahambhatt & Others ·1 209
35 Kariuki Muioua & Co clients
3 586
36 Kempaper Ltd
1 870
37 Kenmosa Holdinos
1 110
38 Kilimanjaro Carvinos Exports Ltd
1 400
39 Kinos Investments Ltd
1 7
40 Klnosway Automart Ltd
1 2,102
41 Klngsway-Mart Ltd
1 246
42 King-swa-yMotors (K) Ltd
3 761
43 Kingsway Properties Ltd
1 6
44 Kingsway Tvre & A utomart Ltd
2 4,443
45 Klngsway Tyres Ltd (Piranha Centre
5 1,238
46 Kitek (7) Ltd,Kahawa
1 125
47 Malde Transporters Ltd
1 652
48 Manoj R Shah (Lions AIC)
1 90
49 Marera Pharmaceuticals Ltd
1 127
50 Markfirst (Kenya) Ltd
1 114
51 Motor Boutioue
1 349
52 Nairobi Mineral Water Company Ltd
1 300
53 Naivasha Matresses
1 201
54 Naivasha Self Service Stores Ltd
1 624
55 Nakumatt Holdinos Ltd
1 28,723
56 Nakumatt Investments Ltd
1 700
57 Paolo Satta nino
1 92
58 Pacific Systems Ltd
1 190
59 Pegrume Limited
4 524
60 Pepe Ltd
1 310
61 Petroleum and Industry Services Ltd
1 150
62 Phones Direct Ltd
1 159
63 Reality TradinCl Company Ltd
1 400
64 Roxxon Tradino Company
1 119
65 Scorpio Telecomunication Ltd
1 151
66 Sevani Brothers & Company Limited
1 351
67 Shailesh Pra·acati
1 2,100
68 Shawaz Textile Mills Ltd
1 100
69 Smeet Shah & Dilpun Shah
1 157
70 Sona Industries Ltd
1 152
71 Spamell Ltd
1 117
72 SunmattLtd
1 371
73 Teeve Insurance Brokers Ltd
1 104
74 The Copy Cat Ltd
1 136
75 Trinitron Petroleum Cornpanv Ltd
1 2,000
76 Tusker Mattresses Ltd
1 3,716
77 Ukay Estates Ltd
1 228
78 Unizone Investments Ltd
1 198
79 Vitu Ltd
1 500
80 Walji Muljj & Co
1 205
81 W.E.TilleyIMuthaioa)
1 5,890
82 Wellen International Ltd
1 400
83 William K Gitau
1 103
84 World Shelter Ltd
1 102
85 Yaya Phone Link (K) td
1 354

103 78,631

page 3 at:
 ·;:1

". B.

c.

.,." J "

E.

F.

c,

r H.

•. _ ."10._.
" .: .• " 'f'
r
 . .,t
--- -----
lilli'
../ --_.- ... _-
'~-:~ . \ ~.
1).,1' 111~\ _~'~" I·t' n 11f' _~,~1J..~~~,~,~.

[iJ N :I Ii 'Ill :l I O:l 11 k

12·003

·'f" I

f • ) "
I I .' ) \.\ \ f.'. t" , I "

"~"I
•
, ..
• '-",f • .,. '0""
f5'~'~~~":'::.-J
• . .
, .

Ale Nt). 0102J1!JOOOOI)O

.. ,,".Oh,h~,,'
':~'\:;',~~,
'/-'"
~J
!,~", -,
,- f. ;1 • ,t.,
," . :'~

)';j'11'1"
,." . r
I '." ..

Ul iJ il
 / NATIONAL /

:,. ::,.. By ~L\.RK AGtiTU The. UdlWlli suppliers Went to court

..:~..': :-, :.: and Tl\lOTIn' KAGEMA· .as: week.od gOI temporary orders
~~ slC::,ping the sale of their goods currently
:~.; t. The Hig;1 Court yes:e.rday set J51d: a lying .ar Ucburni ouue u across the
;:,J • case filed by SJppiJ:rs of the collapsea
I. country.
Uchurni superrnarcet cba.n 10 Jlio',I, • .\1eanwhile, former Uchumi 'employ .
.:. l.a.ll:.son ItS rev.valro conunue. ees yesterday requested tte Govern-
·l~·.. Panics in a disoure Over {he sale 0; ment [0 consider former manJg.Lng circe-
'-;:~~""stock valued at ssi.sbillion are hoioLCZ .tors Titus Mugo and Ajay Shah 10 run
~~';"~;1A~
on the best way forward folJov.U'I£· the revamped supermarker chain.
:~~.,~ government. backed revival plans. The two were Ihe only ones capable of
~; ..•···~~··Judge HJ,iari Waweru of.lhe Mjl.j~~l turnlcg the superrnarket chain to profit .
.:;:~~. :.Commerclal Courts In NaHOOI .:lbilily.said tl'1e:.fonneremployees,
.~~::.::)djourned the case until The workers were reacling to reports
.~-~·r·.V{ed.nesd.ay .when. 'he that the Government
"":'»,
·~rr.:;·parues
·,,~~update
J hi
WI1thegive
on talks, man.
D"ispute was ali was; recruiting people fa
.imp/emeol Uchumi's

"i.<ZJ··, .. Also to stay pUI until sale of stock .: revival pian. .

Pattni bid to halt meiitiori>tf cff§·e1U'. -

~ .. ~"'the:riis an application by Among those who are
.:C::Ui.~.supermarkel and its. on the shelves said 10 have been inter.

I·
;.~,~ ~~iver managers ~d viewed for the top Job
.,;';- ::;anolher by one leading. include Mr Mugo, Mr ..•....
:! r,-:;1.,~.•.
",1"~ ••

~etiar~~~
A"
~3$:;.~;..~.ditor .;: PTA. Bani: ~, . Shah. formerly opera. B)' NA nON Correspondent
10 halt the mentions in the ~ (oUor.: : ./to
"'?::;.:.'.-.:::.
seeking to have the order stoppmg tions director at Nakumatt supennar-
~:'""
. the sale of stock set aside, . . keu. former Wananchi Online CEO . ing a temporary Court o( Appeal oroer ~~j>eaJa
~ 0uJ.rldthere';!i~.;'~st<
JIICmpl hy the defence to Slopping the trial, ecs a res ~~,
' •• : The court was; informed
.. -;::::.' development
J' 01· the nee
'by the suppiiers' lawve-,
~Jeri Rionge, and Mr Michael Scanlon.
a ionner CEO OJ! ~fater hospital.
have rheSh5.S billion Ihch case
J~J;ns, SIX people suspended I The temporary order was obtained by ceed.iitgs againS:i the Six:
businessman Kamlesh Panni. ' fanner spy chiefJames .•..
~;~"'~'''Mr Nelson Havi, who said it would oe The.workers demanded that fanner tndefmuetv napped yeslcrdJ)'. :'vir Panni warns the COurt to temporariJ)' central bank governor En'
:;;;.c':_
prudent to await ihe Outcome of the director Chris Kirubi apologise (or alleg. This Iol!o •.•.
"S Nairobi senror principal
Slop his prosecution over Goldenberg deputy Eliphai Riun·····
..•.-"_. talks b ..his li . h edly calling them thieves, They also want magistrate Rosemell ,\1UlokJ's decision pending the hearing o( his appeal. He .permanenlsec:reiary,W
.:;;: ':'Credito~~~~~ehold~rse~~ t[h: ~~~,~~~ apology from those Who made J decision
Keni' ..
It:?:"" , " . ~~o;:::::::~m":~::;;:;::;;,"O","
10 reject requests 10 exempt the suspects lakes issue with the High Court (ar •.. and former
-·D.··· ~·rneDt. which ..started yesterday and con- to close down Uchumi branches without from Jllendine court for mention of the denying him similar orders when he geceril riiiiiif'crEIi}ao.
case. s.Jying II \...·35 her duty to ensure
sought refuge in it. pendiJig the detCriiUna
thai [hey appeared in COurt. And when inecase carne up (or he.a.ring, before the CoU"o[ A .
Some defence lawyers w anted the Court
his lawyer. Mr Bernard Ka1o~e. brought ~~~:"~~-':~~0~'
~<:·"<1
'rJJ:t' ·:·~··,:;~~,::f
. . .. ". . .:AJ~~1i
BRITISH AMERICAN TOBACCO KENYA L1~rr5~~iits
._.:~ ..,.:-I~~~i?:~.>~<:'-.
.. .,... 't·.
: ~~;;;;~~~i
Business 0 ortuni - Distributo~i~'s

,J.xi;L.:~·lNF<ORMAi-ION·REWARD SCHEME All our brands are sold through authorised Distribufurs'WI
geographical exclusivity and Trade Marketing:SlipP9Ifbe1n
. ...•. ·--~~');,r<.:

---,,:::~'":.Kenya· Revenue Authority wishes to draw the public's attention to

by the company. As part of our on-going distributJon'Jreorg
.::::3':a,scheme th'at rewards persons who provide information as
I~J{~~~'?fif'
~:-:
':: . _'-. business opportunities are currently available in·the.friilowm
locations: . . ,,;, }':.~'~,':~~~
~:;i; ~:>;1~f6nnatiori leading to the identification of hitherto Greater Nairobi
Tala / Kangundo
';;'.""""~ ;
. "
~. i;..."3:;.';;', ·i:iiii::lisclo·sed
.'$.;' '....• ..~. taxes -
":':'\.
a rewa·rd
-, .. amounting
~. . to 1% of the tax
!~:i'"I, t"'::-·· ideritifieid.up
.~ •.-_ .'.•....•.
:It •.•• .- '.,~..
to a '.'maximum .'of'. Ksh. 100,000.
i<';.,.': ,~.::<e , Information leading to the recovery of hitherto undisclosed

~)~~i;\,'7~~S c;~;re~ard arryotinti!19to.3% of the taxes collected.

:1· ~v.~'~~~;~~t~~~~Ti· ·;~iSU;~c1';i.,~t~*·:·d~nrideni;aJity to safeguard
":~.i{
~~e~ti.~s·\';'t1i1~ fn.forrriatlon ;:s,~ppHed.ls m.eticulou.sly vetted to

I. "'~ ~dlscourageJvendetta. One may'Jog onto,www.kra.gO.ke to obtain

.~ ~i
: :} ~2817800t
. ::if
~a.ftaiisron !tJEt
l~whisUeblower@kra.go.ke.
:~ confidence. :'~,~,
., ~~~:~~":
R~wardSche~e;~~
·(q?OH~433:42

•.:~q""-'.i,·~}.·: -..•._ .•...

0Qfax;(020)
Call:·(020) 281-7700, (020)

·or:';tirlmbi@kra.go.ke
~;.. .. .
;_..:.. ~~iri't ....
:~. .
3413~2 or email
in complete

~"'.8e patrfoVc 2..: share knowledge on tax evasion arid eam rewards!
.:\ ·.,:;£r~:,;~-:.~~~~:.'::~ .: ~ ., ~~C~:~:~· :
~. fi:~:-i~' Kulipa Ushui"li 07 Kujitegemea
::ru F~iJ.!4inln".4
"':)n I'rt.,.,:
InJ""n~ri." C(~/r;,.~."..b,"4,h'4 Ihr~u:hIh, /ollowin: ,h.nnt":
Offiu '/Iht C.mmztJzlllu. Gtna4f. Timrs Tow", 30zh Flo".
M4il: .1';~O.;BOX·.(8UO_oo 1oo:;'1;;'Q'Ntii,;.6i,;Phu,: (020) 281-7700
{'. f!i 0 ~in£);(020)281-78 OG(H"Ii. i);(020)3PH z,: F~i(020)3 tJ 3 42. Em. il;r"~ k,. .:0. x,
,r-'~' a..,..r :;- '-Visilourwe~_at~tlp~.krago.ke.
I r"'~ J

"-- -.-- _._---

 PRIVATE AND CONFIDENTIAL
Date: 13th April 2006

To: Mr. Nduati

Investigations
Kenya Revenue Authority

Re: Reward for disclosure of Information

Refer to our meeting last year at the Commissioner General's office which had been
arranged by the Chairman of KRA Mr.Mwangola.

As you are aware, we handed over to your office the relevant information that has
enabled you to increase your tax collection from the traders who have over the last 5
years been evading paying duty. Please note that the list contained over 400 account
holders. .You will concur with us now, that the information we gathered for you has been
fruitful and has also assisted the Central Bank of Kenya in their investigations. We wish
to reiterate your remark that it is your policy to reward appropriately those who have
helped you increase taxes by giving such confidential information. Since the matter has
already been given the greenlight by the Commisioner General during our meeting and at
the same time you confirmed having received the confirmation from your counterpart at
KACA Dr. John Mutonyi,we trust that you will kindly make good your promise to reward
us for the work done in helping you to apprehend the tax evaders. We have been patient
'for over 2 years now and believe that its time now for you to motivate us so as we may
forward to you new information.
Our cry for reward is further enhanced by the fact that the matter is now out of court.

We therefore request you to reward us first and foremost for only the following 10 out of
the over 400 cases reported to you.

Sr Name No of Accounts Turnover

) 1. Brand Imports 3 1 billion
2. CemparkLtd 2 1 billion
3. Creative Innovations 4 1.1 billion
4. Kariuki Muigua & Co.Adv 3 600 million
s. Kempapaer Ltd 1 870 million
6. Kingsway Tyres( & allied groups) 13 9 billion
7. Nakumatt Holdings 2 30 billion
8. Pegrume Ltd 4 600 million
9. Shailesh Prajapati 1 2.1 billion
10.. Tusker Mattresses 1 3.7 billion

Looking forward to your response on the matter.

Signed:
,,.

do
Date: 6 June 2005.

To: The Commlssjon er General

Kenya Revenue !\uthorit)'
Times Towers, Nairobi.

Ref: Reward for information.

I. Mr. Peter George Odhia mbo of P.O.Box 2820-00200 City Square, Nairobi hereby confirm giving
information with regards to tax evasion of some companies. which are now under your investigations.
Some of the 15 out of the over 200 companies with their turnovers for the last 5 years indicated are as
below:-

J .Brand Imports I billion

. 2.Cempark Ltd I billion
3.Creative innovations I billion
4.D.Shah 500 million
5.Fones Direct Ltd 249 million
6.Kariuki Muigai & Co. Advocates 600 million
7.Kemraper Ltd 870 million
8.Kingsway group of companies 9 billion
9.Nakumatt holdings 28 billion
IO.Shailesh Prajapati 2 billion.
II.Tusker Mattresses 4 billion
12.Yaya Phone Link Ltd 354 million
l LPeg rurne Ltd 500 mill inn
14.Kempaper Ltd 870 million
15.Malde Transporters 650 million

The information was obtained by my virtue of ernployrnent. Original documents pertaining to the
above are under your custody. .
I trust that the information has been useful to you and has as sisted you to increase the revenues that in
tum heir to build the country. I believe that once yo u complete your investigations. you will reward me
•..,•.ith the full amount per company 3S stipulated hy the act.

In the meantime. I would anpreciate to receive your sum of Kgh5.200.000- (Kshs. Two Hundred
Thousands Only) as discus sed for motivation which shall ultimately be deducted from the final
settlement amount on cornp lction of your investigations.

It is also my trust that the :li"><'veinformation is treated in strict confidence.

Yours,

Peter (;.Odhiambo l\t'\

~:~,QI~::~I987
/1Y. Q.~~.~~ .
Date:
b·ob.Of
 UANKI
Governor KUU YA
KENYA

Ibiic Scl~l,si<: Avenue

.1.'.0. !lox 6000G Nairohi Kenya
Ic lcphonc 226~) 1 Telcx 22324

Hon. David \;w!:',nia

:v1inistcr fo:' :::::~;:L-:C8
or
I re,.sL:r~'

l'\i:,irooi

Dear

Charterhouse Bank Lirni te d

Following the meeting between Charterhouse Bank and the Minister for Finance on 20,h
December, 2004 an inspection was conducted on 100' February 2005 to determine
whether the bank had subsequently complied with the provisions of the Banking Act and
prudential regul<J.tions.

The following were the findinqs:

• Rccornrnended Provisions had been made.
• All ClCCO'-1!1tsidentified as ncn-perforrninq were correctly classified.
• The bank had rectified the violations of the Banking Act earlier identified.
• 1\0511"0 accounts statements previously rnissinq were availed to the inspectors.
• 0:' the 223 missing account opening fo rrns , 105 were related to closed accounts
while 70 account opening forms were obtained during the follow-up inspection.
• The bank had written to 45 account holders where adequate details had not been
obtained (It t:~e time of opening the accounts. The bank's management had therefore
requested to be given three months to obtain full identification records on the
remaining customers.

The Bank was fined l<5h.1,OOO,OOO for violations of sections 10(1) and 50(1)(b) for
which it is now compliant.

The purpose of this letter is to seek the Minister's approval to issue the bank with the
Licence for 2005...-
.. '--_ .•.. -
....
:0- •••••••••• , •• ,

I~ -
, ..-' ••••

/' ..,.,; •••.. ::.. »s- -z-..•l...•:~-~'..•.:~.~•••,.~ .

~• .,,-- '~"#-"' -e , : -~::;- .••••• ".

-, '.. ,.-.~ ".;

ANDRE\\' K, MULLEI
 Chd ·terhouse Bark Limited Rep Jrt na, ,,:'03/f'1I/04 page: 1
PWA 79 Account Turnover t Run Date: 03/08/2004 12:54:54 PM
Charterhouse Bank Limited "

From 01/01/98 to 03/08/04

- --------------------------------------~--------------------------------------------------------------------------------------------
Account Account opening Balance Debit Credit Turnover Closing
Number Description Amount Amount Balance
---------------------------------------------------------------------------------------------------------------------------------------
BC 01·500000 BANKER'S CHEQUE 2 ,000, 000.00 CR 11,710,579,474.69 11,759,908,848.64 49,329,373.95 CR 51,329,373.95 CR
CA 00 001000 CHESTER INSURANCE AGENCIES LTD 0.00 0.00 0.00 0.00 0.00
CA 01-000001 KHIMJI B. SEYANI & OTHERS 1,922,578.66 CR 35,310,267.11 34,057,525.45 1. 252 ,741. 66 DR 669,837.00 CR
QCA 01-000002 M. R. & S. R. SHAH 9,564,143.74 CR 105,996,544.59 96,714,820.32 9,281,724.27 DR 282,419.47 CR
CA 01-000003 MOHSIN HASSAN 50,070.55 CR 310,070.55 279,687.55 30,383.00 DR 19,687.55 CR
CA 01-000004 HIRJI SEYANI ""i' 17,053.40 CR '42,726,144.05 42,709,090.65 17,053.40 DR 0.00
CA 01-000005 COTTEX MANUFACTURERS LTD ""': 1,018,532.33 CR 44,708,292.07 42,710,334.04 1,997,958.03 DR 979,425.70 DR
CA 01-000006' KAMLESH V SANGHRAJKA ,,,t, p,s-r 22,416,585.67 CR 167,467,573.23 138,221,094.01 29,246,479.22 DR 6,829,893.55 DR
oCA 01-000007 KINGS INVESTMENTS LTD. 7,046.98 DR 7,913,692.56 8,543,903.56 630,211.00 CR 623,164.02 CR
~CA 01-000008 KINGSWAY PROPERTIES LTD 7,699.39 CR 7,609,275.88 7,908,889.08 299,613.20 CR 307,312.59 CR
(,CA 01-000009 CREATIVE INNOVATIONS LIMITED ~ 48,255,427.32 CR 691,222,239.92 625,575,175.18 65,647,064.74 DR 17,391,637.42 DR
CA 01-000010 KERBROOK GARMENTS MANUFACTURERS 22,299,256.51 CR 169,301,927.21 144,060,420.45 25,241,506.76 DR 2,942,250.25 DR
CA 01-000011 NISHIT & CO. LTD 13,803,372.20 CR 55,891,444.52 47,296,007.02 8,595,437.50 DR 5,207,934.70 CR
v) CA 01- 000012 f) KINGSWAY TYRE & AUTOMART LTD ./ 7,470,415.94 CR ,"4,685,940,719.72 4,646,250,416.21 39,690,31)3.51 DR 32,219,887.57 DR
o CA 01-000013 STROBE SYSTEMS LTD 'nf I'V 633,572.55 CR 48,859,178.80 48,277,773.45 581,405.35 DR 52,167.20 CR
CA 01-000014 HAMECO LTD 1:1' v ,,\ ;':"0" , -, l 72,092.14 CR 29,851,047.21 30,021,239.17 170,191.96 CR 242,284.10 CR
CA 01-000015 MANIX LTD. 11,514,483.33 CR 86,778,001. 46 75,609,647.14 11,168,354.32 DR 346,129.01 CR
CA 01-000016 NUTTY SAFARIS 3,964,950.08 CR 17,916,472.42 14,275,803.94 3,640,668.48 DR 324,281.60 CR
CA 01 000017 CONSOLIDATED ASPHALTS LTD 16,537,253.76 CR 25,292,635.53 16,911,224.15 8,381,411.38 DR 8,155,842.38 CR
CA 01-000018~ GLOBAL TYRES LTD 515. 546.24 CR 14,793,481. 59 14,281,186.31 512,295.28 DR 3,250.96 CR
CA 01-000019 BULK MEDICALS LTD 19,108.80 CR 6,497,739.30 6,490,824.15 6,915.15 DR 12,193.65 CR
CA 01-00002G' PIONEER PLUMBERS LTD 8,979,547.93 CR 111,602,417.27 102,607,663.81 8 , 994 .7 53 . 46 DR 15,205.53 DR
CA 01 000021/ RIVERSIDE VILLAS LTD / 10,842.35 CR 64,456.40 53,614.05 10,'842.35 DR 0.00 ,
CA 01-000022 GREENHILLS INVESTMENTS LTD. (h 'c\ 6,225,673.61 CR 474,296,878.51 463,790,563.11 10,506,315.40 DR 4,280,641. 79 DR
CA 01-000023 JAYESH AUTO SPARES LTD 338.40 DR 27,357,797.90 27,377,864.75 20,066.85 CR 19,728.45 CR
CA 01-0000241 ~SEIKO INVESTMENTS LTD 375,033.09 CR 20,446,780.26 20,835,430.92 388,650.66 CR 763,683.75 CR
CA 01-00n025' ,CIKO INVESTMENT LTD 210,045.79 CR 12,670,067.86 12,687,043.57 16,975.71 CR 227,021. 50 CR
CA 01-000026 ATLANTIC PRODUCTS LTD. 788,508.04 CR 23,397,582.96 23,335,965.06 61,617.90 DR 726,890.14 CR
.iX CA 01 000027 "~I' \. ARIAN AGENCIES 45 , 646. 11 CR 244,223.03 199,435.17 44,787.86 DR 858.25 CR
./ CA 01 000028 NATIONAL INSTITUTE 'BOARD 0.00 0.00 0.00 0.00 0.00
CA 01 000029 SANDIP GARMENTS 4,755.45 CR 1,009,932.90 1,005,177.45 4,755.45 DR 0.00
___ r~ 01-000030' M/S MEGHJI KANJI & CO. LT8 554.60 CR 58,582,167.65 58,583,737.95 1,570.30 CR 2,124.90 CR
CA 01-000031 K. N. PATEL & OTHERS 1,367,125.52 CR 94,263,713.89 97,656,986.20 3,393,272.31 CR 4,760,397.83 CR
CA 01-000032. ARPAN WOOD & EQUIPMENT 2,064.95 CR 998,219.45 996,154.55 2,064.90 DR 0.05 CR
CA 01-000033 SIGN STOP LIMITED 192,764.45 CR 2,636,726.05 2,478,223.10 158,502.95 DR 34,261. 50 CR
CA 01-000034' ,T CLEANWAYS 493,913.75 CR 11,954,273.30 , 11,460,359.55 493;913.75 DR 0.00
CA 01-00003~' SAILEM ENTERPRISES 4,299.55 CR 6,862.55 4,416.55 2,446.00 DR 1,853.55 CR
CA 01-000036 RATILAL AUTOMOBILES LTD ' . 1,047,132.60 CR 14,136,392.81 13,271,485.01 864,907.80 DR 182,224.80 CR
CA 01-000037 EROS CHEMIST LTD 5,024.24 CR 229,015.64 223,992.40 5,023.24 DR 1. 00 CR
CA 01-000038: RIVERSIDE FITNESS CENTRE LTD 35,800.00 CR 824,125.60 788,325.60 35,800.00 DR 0.00
CA 01-000039 PRIYESH R SHAH 448,313.23 CR 142,811,923.09 142,365,328.96 446,594.13 DR 1,719.10 CR
~CA 01-000040, PEJA LTD 685,965.17 CR 15,728,001. 72 15,327,749.52 400,252.20 DR 285,712.97 CR
CA 01-000041 TROPICAL APPARELS LTD 0.00 0.00 5,350.35 5,350.35 CR 5,350.35 CR
CA 01-000042 SM1BURU DEVELOPERS 0.00 8,038,300.00 8,046,070.00 7,770.00 CR 7,770.00 CR
c CA 01-000043 JAMACHAR (KENYA) LTD/, 16,854.44 CR 58,211,977.75 58,195,123.31 16,854.44 DR 0.00
':~CA 01-000044 I )WILLIAM K GITAU V 75,285.93 DR 114,589,165.00 123,687,158.43 9,097,993.43 CR 9,022,707.50 CR
'J CA 01-000045 \/'fAMACHAR (K) LTD V 17,974,128.59 CR 322,579,874.09 • 306,185,204.93 16,394,669.16 DR 1,579,459.43 CR
CA 01-000046 MZIGO ENTERPRISES LTD 0.00 925,623.60 925,624.40 0.80 CR 0.80 CR
CA 01-000047 CRAFTS SAFARISH LTD 0.00 6,063,700.00 6,063,700.00 0.00 0.00
CA 01-000048 AUTOMOTIVE & BATTERY MFG.(K) LT 0.00 12,966,816.95 12,966,816.95 0.00 0.00
(A 01-000049 N H 0 PATEL & OTHERS 1,049,423.88 CR 51,651,481.25 50,714,298.06 937,183.19 DR 112,240.69 CR
CA OL-00005~ SEYANI BROTHERS & CO. LIMITEL 8.405,246.00 CR 415,682,026.19 '16 ~99,062.72 617,036.53 CR 9,022,282 53 CR
 charterr.ouseBank Limited
PWA-79 Account Turnover Report f'a 03/08/04 Page:
Charterhouse Bank Limited Run Date: 03/08/2004 12:54:54 PM
From 01/01/98 to 03/08/04
--------------------------------------------------------------------------------------------------------------------------------------------
Account Account
Number Descript i on Opening Balance Debit Credit Turnover closing
Amount Amount
--------------------------------------------------------------------------------------------------------------------------------------------
CA 01-000051 INTERGUARD SECURITY SERVICES LT Balance
CA 01-000052 HANDY HARDWARE LTD 2,169.46 CR 18,624,755.79 18,785,687.97
1,499,827.70 CR 160,932.18 CR 163,101. 64 CR
CA 01-000053 LEAFSPRING MANUFACTURERS LTD 14,213,492.95 14,604,702.53 391,209.58 CR
120.21 CR 1,891,037.28 CR
CA 01-000054 ~ SUNCITY EXHIBITIONS LIMITED 73,~81,313.81 73,614.579.75 33,265.94 CR
CA 01-00005V." SETHIA CREDIT LTD. 464.48 CR 8,530,623.61 8,530,208.13 33,386.15 CR
0.00 415.48 DR 49.00 CR
CA 01-000056 LETAP (K) LTD 34,601,122.75 34,601,122.75
0.00
0.00 0.00
CA 01-00005Z BAHA'I PUBLISHING AGENCY ,...---- r , 30,990,755.68 30,992,204.78 1,449.10 CR
CA 01-000058 MAHESH TAILOR 2,663.36 CR 1,167,089.75 1,164,426.39 1,449.10 CR
2,639,339.02 CR 2,663.36 DR 0.00
CA 01-000059il"f. ESSENTIAL AUTO SPARES LIMITED 96,816,066.31 94,352,297.12 2,463,769.19 DR
2,830.00 DR 175,569.83 CR
CA 01-00006~ MONIER INTRENATIONAL LTD 5,253,929.80 5.259,589.80 5,660.00 CR
0.00 2,830 00 CR
CA 01-000061 SKYPLAST MANUFACTURERS LTD. 4,454,524.14 CR
665,566.10 692,049.05 26,482.95 CR
CA 01-000062 EXOTIC NURSERIES 53,76Q,912.82 50,372,102.93 26,482.95 CR
8,483.69 CR 3,388.809.89 DR 1,065,714.2'; CR
CA 01-000063 rvjl,. LOCHAB TRANSPORTERS 3,578,573.85 3.571.088.25 7.485.60 DR
CA 01-00006~ BRAND HOUSE LIMITED 6,004,293.73 CR 22,947,492.43 17,033,241.45 998.09 CR
219.97 CR 5,914,250.98 DR 90,042.75 CR
CA 01-000065 NELSON J BICHANGA 2,659,863.89 2,688.643.22 28.779.33 CR
CA 01-000066 SPARNELL LTD 465.57 CR 6,416,579.95 6,444.743.29 28,999. 30 CR
361,226.79 CR 28,163.34 CR 28,628.91 CR
CA 01-00006~ TRANSAFRICA CARS LIMITED 139,254,007.23 140,926.880.25 1.672,873.02 CR
608.69 CR 2,034,099.81 CR
CA 01-000068'f'" TANYA &-MOHAMMED AZEEM & BHOLA 1,198.11 CR
1,736,624.60 1,736,015.91 608.69 DR 0.00
CA 01-00006~) ~~GRUME LIMITED 117,238.36 120,054.32 2,815.96 CR
CA 01-000070 '.CEMPACCLTD ,.,/ 21,162,309.88 CR 165.773,253.19 145,476,761.81 4,014.07 CR
498,454.06 CR 20,296,491. 38 DR 865.818.50 CR
CA 01-00007f,1,~HAMED&MEHRAZ~EHSANI 387,867,966.91 393,127.113.64 5.259,146.73 CR
~.CA 01-000072 t' M. R. TAILOR 1,025,515.78 CR 5,757,600.79 CR
6,013,640.68 5.002.463.07 1.011.177.61 DR
54,202.02 CR 8,993,357.43 8,970.219.57 14,338.17 CR
CA 01-000073. MARS SAFETY SURGICAL ~ 23 , 13 7 . 86 DR 31,064.16 CR
0.00 598,878.00 598,878.00
~ CA 01-000074 ~CREATIVE INNOVATIONS LIMITED 1,360,821.51 CR 0.00 0.00
CA 01-000075"" JOHN & ANNA NDAMBUKI /' _., 466,089,773.73 458.443,466.75
----:;;> CA 01-000076 AUTO IMPORT LTD ,.'Ill \ -; v /-"
...
\£Ot,\) -! 5,287.14
c 27,932,717.97 CR
CR ~2,376,113.73 41,738.590.69
7,646, 306.98 DR
637,523.04 DR
6,285,485.47
632,235.90
DR
DR
CA 01-000077t"~ ALNASIR JIWANI 158,738,662.99 115.408,027.01 43,330.635.98 DR
0.00 15,397.918.01 DR
CA 01-000078"~ DIVINE ENTERPRISES 5.000.00 10,000.00 5,000.00 CR 5,000.00 CR
0.00 478,710.00 491.913.00
CA 01-000079 EXXADO PAINTS &ALLIED LIMITED
:--~CA01-000080 ~+, JUBILEE TYRES LTO 1,667,715.87
7,337.63
CR
CR
6.284,157.47 4,970,614.11
13.203.00
1,313.543.36
CR
DR
13.203.00
354,172.51
CR
CR
~/r- ~" CA 01-000081
CA 01-000082
CA 01-000083
SACHUS LIMITED
SUBHASH CHANDRA M GUDKA
MUSSE LEAKEMARIAM r
6,779,896.39
0.00
CR
173,117.061.53
75,425,907.84
97,052,770.55
174.948,201.03
67,910.843.85
97,052,770.55
1,831.139.50
7,515,063.99
0.00
CR
DR
1.838,477.13
735,167.60
CR
DR
304.26 DR 0.00
CA 01-000084 ATULKUMAR M SHAH • 2,452,381.24 2,456,412.40 4,031.16 CR 3,726.90 CR
Q CA 01-000085& NAKUMATT HOLDINGS 0.00 0.00 124.268.35
39,175,084.05 CR 33,380,763,497.14 124.268.35 CR 124,268.35 CR
CA 01-000086\\\,,~, KIRITKUMAR NATVARIBHAI & ANJANA 33,450,419,509.38 69,656,012.24 CR 108.831.096.29
0.00 CR
CA 01-000087~ ASK ME ENTERPRISES 14,010,668.00 14.015,678.00 5,010.00 CR
.0.00 5,010.00 CR
CA 01-000088 MWANANCHI AUTO PAINTS & WHOLESA 192.85 CR
1,773,122.50 1,773,122.50 0.00 0.00
CA 01-000089 NEWCAL TECHNOLOGIES 7,279.796.65 7,282,741.01 2,944.36 CR
20,182,285'.00 CR 3.137.21 CR
CA 01-000090 ALBERT K KIMWATAN J' 107,836,537.49 72,286,487.20 35,550,050.29 DR
1,450,000.00 CR 15,367,765.29 DR
. CA 01-000091 KARIUKI MUIGUA & CO., CLIENTS A v" 8,296.253.10. 6,849,447.20
/1--- (i::t\ CA 01-000092 SUNMATT LIMITED
47,990,500.35
603.40 DR
CR
1,355,347,599.40,* 1,355,526,082.30
1,446,805.90
178,482.90
DR
CR
3,194.10
177,879.50
CR
CR
\~;;CA 01-000093 BID INSURANCE BROKERS LTD 492,623,476.15 451.635,215.08 40,988.261. 07 DR
582,656.12 CR 7.002,239.28 CR
CA 01-000094 UMIT & COMPANY LTD 33,115,174.57 32,541,697.45 573,477.12 DR
12,490.83 DR 9,179.00 CR
CA 01-000095 DAVID SUNSTRUM 71,540,172.53 71,183,067.41 357,105.12 DR
0.00 369,595.95 DR
CA 01-000096 T. S. & H. S. KALSI 500.00 DR
884,972.35 887,859.70 2.887.35 CR 2,887.35 CR
CA 01-000097~ MITSUBA AGENCIES LTD 36,794,141.75 36,810.614.80 16,473.05 CR
0.00 15,973.05 CR
CA 01-000098' PREMNATH KAPOOR 10,000.00 20,000.00 10.000.00 CR 10,000.00 CR
CA 01-000099 \)1.,\ M/S BID'S MATCH LTD. 4.47 CR 7.512.47 52,020.47
248.21 CR 44,508.00 CR 44,512.47 CR
CA 01-000100,,' VIJAY K SHAH 24,884.636.01 24,884.387.80 248.21 DR 0.00
0.00 17.416.031.05 17,416,031.05
CA 01-00010T COMMERCIAL & INDUSTRIAL CRED!- 0.00 0.00 0.00
'CA r,'.-000102 TRISTAR BOTTLERS LIMITED 228,779.40 237,377.35 8,597.95 CR 8,597.95 CR
53,813,093.92 CR 116,037,651.67 •••.S2.105.673.31
53.931,978.36 DR 118,884.44 DR
 ~harterhouse Bank Limited
~eport oa , . 03/08/04 Page: 3
PWA-79 Account Turnover
Run Date: 03/08/2004 12:54:56 PM
Charterhouse Bank Limited
From 01/01/98 to 03/08/04
--------------------------------------------------------------------------------------------------------------------------------------------
Account Account Openi ng Balance Debi t credi t ru rnover (1 os i nq
Number Description Amount Amount Balance
---- -- --------------------------~-~-------------------------------------------------------------------------------------------------------
CA 01-000103 CHYENI BOOKSHOP 4,624,989.20 CR 63,066,540.19 58,924,314.23 4,142,225.96 DR 482,763.24 CR
CA 01-0001041'-"-: DEKA INDUSTRIES 1,868.14 CR 1,675,961.42 1,995,559.28 319,597.86 CR 321,466.00 CR
Q CA 01-000105 11 . KINGSWAY MOTORS (K) LTD 10,650,087.98 CR 796,682,279.8'8 788,493,080.00 8,189,199.88 DR 2,460,888.10 CR
CA 01-0001061 ' AVENUE FLATS 0.00 4,451,601.75 4,452,697.65 1,095.90 CR 1,095.90 CR
CA 01-000107 SUNSHINE SUPERMARKET LTD 42,773.79 CR 17,726,355.96 18,575,148.94 848,792.98 CR 891,566.77 CR
CA 01-000108 SUNSHINE FASHIONS LTD 669.40 DR '21,856,742.47 21,865,462.57 8,720.10 CR 8,050.70 CR
•• CA 01-000109 KINGSWAY TYRES LIMITED(Funz; Rd 338,634.03 CR 1,101,543,108.67 1,106,141,614.62 4,598,505.95 CR 4,937,139.98 CR
CA 01-000110"\~ KAMAR CONSTRUCTION 211.28 CR 1,363,713.03 1,364,030.75 317.72 CR 529.00 CR
CA 01-000111 JAKHARIA PACKERS 61,471.04 DR 495,837,208.06 499,414,317.60 3,577,109.54 CR 3,515,638.50 CR
CA 01-000112 JAK INDUSTRIES LTD 17,984,599.12 CR 238,107,744.16 218,110,867.89 19,996,876.27 DR 2,012,277.15 DR
CA 01-000113 \ S.A. PEGRUME & CO. LTD 129.55 CR 3,488,966.66 3,529,015.11 40,048.45 CR 40,178.00 CR
CA 01-0001141 ~ l\ AMCO CAR HIRE LTD 0.00 61,666.00 61,666.00 0.00 0.00
CA 01-000115J ARDEY PROPERTIES LIMITED 0.00 1,900.00 1,900.00 0.00 0.00
CA 01-000116 AFRICON SALES LTD 14,548.90 CR 25,818,462.97 26,510,033.70 691,570.73 CR 706,119.63 CR
CA 01-000117 l MARERO PHARMACEUTICALS LTD 3,805,343.60 CR 138,103,382.65 135,147,599.37 2,955,783.28 DR 849,560.32 CR
CA 01-000118",r AMRUIT TRADERS KENYA LTD 0.00 3,765,450.60 3,765,553.40 102.80 CR 102.80 CR
CA 01-000119 COSMOS AUTO PARTS LTD 0.00 654,492.00 654,492.00 0.00 0.00
CA 01-000120 DELUXE FOOD INDUSTRIES LTD 2,151,673.20 CR 51,230,388.02 49,659,192.79 1,571,195.23 DR 580,477.97
CR
CA 01-00012Jy(1I INTERNET TRADE SERVICES LTD 1,797.90 CR 4,563,485.93 4,566,388.23 2,902.30 CR 4,700.20
CR
CA 01-000122 SWAGS & TAILS 0.00 72,000.00 75,000.80 3,000.80 CR 3,000.80
CR
CA 01-000123 MULTI DIMENSIONS LTD. 3.60 DR 4,618,092.80 4,618,540.30 447.50 CR 443.90
.- CA 01-000124"'\(\ GREENHILLS INVESTMENTS LTD. 0.56 DR 12,383,581.04 12,383,596.60 15.56 CR 15.00 CR
CR
CA 01-000125 ;1HESTER INSURANCE BROKE~ LTD 0.90 CR 34,841,069.10 34,984,925.65 143,856.55 CR 143,857.45
CR
CA 01-000126 VROS PRODUCE LIMITED V 500.00 DR 1,105,587.85 1,118,743.00 13,155.15 CR 12,655.15
CR
t4~ CA 01-000127 . SHELTOWN LIMITED V /' 0.00 9,650,975.85 9,664,131.00 13,155.15 CR 13,155.15 CR ..•...
CA 01-000128 SPORTS CHAMPIONS LIMITEDV' 0.00 105,587.85" 118,743.00 13,155.15 CR 13,155.15 CR ....•....
CA 01-000129 MULTI ASSEMBLY,L~lITED V 0.00 r--Z08,175.65! 231,486.05 23,310.40 CR 23,310.40
CR --
tJi\(CA 01-000130 VITU LIMITED'/ -/ 6,961.60 CR 497,122,229.30! 499,679,642.74 2,557,413.44 CR 2,564,375.04

l
CRx
LCA 01-000131 KUSTRON KENYA LIM.ITED v 0.00 10,939,479.50 I 9,538,915.85 1,400,"?i63.65 DR 1,400,563.65 DR ••.
CA 01-000132 IMWAUCO LIMITED V 0.00 105,587.85--t 118,743.00 13,155.15 CR 13,155.15 CR~.P .
~\~CA 01-000133 HARUN INTERNATIO)jAL LIMITED'/ 2,250.00 DR 4,723,148.751 4,560,187.80 162,960.95 DR 165,210.95 DR ~.,.
CA 01-000134 JOHNCO LIMITED&!'_ 0.00 105, 587.85"! 118,743.00 13,155.15 CR 13,155.15
CR -
II"CA 01-000135; PEPE LIMITED .,/'/ 9,537.10 CR F309,838,675.30 311,890,681.65 2,052,006.35 CR 2,061,543.45
CR
CA 01-000136, TOM BROWN LTD t/ / 0.00 '-208,175.65 231,486.05 23,310.40 CR 23,310.40 CR ",...
CA 01-000137 ( MUSIC MINES LIMITED v: 0.00 t...; 208,175.65 231,486.05 23,310.40 CR 23,310.40 CR ..,..
\""rtA 01-00013S H. INTERNATIONAL LTD ~ 0.00 1,234,053.90 1,358,915.85 124,861.95 CR 124,861.95 CR ,/'
~ leA 01-000139 JOHN HARUN LIMITED V/ 3,206,459.06 CR 198,972,408.17 160,431,051.24 38,541,356.93 DR 35,334,897.87 DR ;I
CA 01-000140 WORLD SHELTER LIMITED 0/ / 836,912.31 CR 80,271,387.96-' 102,557,381.23 22,285,993.27 CR 23,122,905.58 CR'
CA 01-000141 GUNTER & GOLDBERG LTD ~ 0.00 22,648,971.45 22,961,126.60 312,155.15 CR 312,155.15 CR ..---
•..•
\~C_A 01-000142 ·' .. JOHN HARUN v 0.00 6,961,358.85 7,739,591.00 778,232.15 CR 778,232.15 CR ,.<.
\J CA 01-000143 NAKUMATT INVESTMENTS LTD 0.00 628,298,366.40 628,698,973.40 400,607.00 CR 400,607.00 CR
CA 01-000144 AUTO PERFORMANCE LTD 309.93 DR 4,811,346.07 4,812,520.05 1,173.98 CR 864.05 CR
Q CA 01-000145 KINGSWAY TYRES LTD, MOMBASA BRA 32,144.42 DR 66,752,334.14 68,049,233.21 1,296,899.07 CR 1,264,754.65 CR
v CA 01-000146 MANOJ R. SHAH R MOMBASA 0.71 DR 9,467,319.04 9,467,696.75 377.71 CR 377.00 CR
CA 01-000147 TEEVE INSURANCE BROKERS! LTD 185,604.40 CR 109,128,059.05 116,551,188.05 7,423,129.00 CR 7,608,733.40 CR
/I CA 01-000148'\ ~SAILESH PRAJAPATIoo:. ./ 189,989,344.53 CR 2,185,707,947.63 !)(2,014,302,748.03 "'t 171,405,199.60 DR 18,584,144.93 CR
II CA 01-000149: HARROW PROPERTIES LTD 0.00 4,785,500.00 •• 4,785,500.00 0.00 0.00
CA 01-000150i\\\~ NARGIS KAPURI PAN 1,000,756.19 CR 10,879,930.83 10,445,360.95 434,569.88 DR 566,186.31 CR
CA 01-0001511 B. S. MOHINDRA & co. (K) LTD 20,181,443.47 CR 66,691,230v08 15,035,431.58 51,655,793.50 DR 31,474,355.03 DR
CA 01-00015i'VS'ONA INDUSTRIES LTD 69,234,054.88 CR 235,005,882.07 155,540,447.53 79,465,434.54 DR 10,231,379.66 DR
CA 01-000153 BTB INSURANCE AGENCIES LTD 4,399,835.30 CR 9,181,551.40 4,894,066.70 4,287,484.70 DR 112,350.60 CR
CA 01-000154t-;l-'\ CHYENI PRINTERS 2,311.66 CR 49':-,18,803.22 ')0,004,098.22 105,295.00 CR 107,606.66 CR
 charterhouse Bank L~mited
PWA 79 Account Turnover Report Da. 03/08/04 Page:
Run Date:
4
Charterhouse Bank Limited 03/08/2004 12; 54: 58 PM
From 01/01/98 to 03/08/04
- ------------------------------------------------------------------------------------------------------------------------------------------
Account Account
Number opening Balance Debit
Description Credit Turnover
Amount Closing
Amount
CA - 01:0001, S;.•i -~~O;~~
-~;~~.~~O
_ _.- -.. -,~,~2;':.3- ~R·····18:8l8,·,~~:'8_.. _.I, ~324:7~;:,0·· _ ;86,~8':;'·C:~. _. - ·632:;;,:,-;
Balance
·C~·-.
-o CA 01-000156
'LA
CA
CA
01-000157
01-000158
01-000159
JAMACHAR
MOSES N NGERURO
IBRAHIM
KENYA

WAWERU GACWE
JOHN N MBUGUA
(FUCHS OIL) 17,033,805.51
0.00
0.00
0.00
CR 45,165,250.49
E30'486'000.00
30,486,000.00
30,422,000.00
f 28,186,141.84
30,496,000.00
30,496,000.00
30,426,000.00
16,979,108.56
10,000.00
10,000.00
4,000.00
DR
CR
CR
CR
54,696.95
10,000.00
10,000.00
4,000.00
CR
CR
CR
CR
r\ \>-. CA 01-000160 NAFTALI L MULENGEKA 0.00 '30,486,000.00 -30,496,000.00 10,000.00 CR 10,000.00 CR
e CA 01-000161 K.T.A.M.L. 47,970,117.54 CR 1,448,578,586.44 1,415,154,749.10 33,423,837.34 DR 14,546,280.20 CR
CA 01-000162 SHERIFF NGUGI 0.00 20,277,000.00 20,278,000.00 1,000.00 CR 1,000.00 CR
CA 01-000163 DAVID M MURITU 0.00 30,396,000.00 30,406,000.00 10,000.00 CR 10,000.00 CR
CA 01-000164 JOHN NJAU S GACWE 915.30 CR 32,282,890.75 32,281,980.75 910.00 DR 5.30 CR
CA 01-000165 K.S BRAHAMBHATT & OTHERS 150,251.49 CR 286,419,575.73 287,351,185.34 931,609.61 CR 1,081,861.10 CR
CA 01-000166 NYCE PROPERTIES LTD /' 58,777.76 CR 2,302,028.58 3,080,444.82 778,416.24 CR 837,194.00 CR
CA 01-000167~ BRAND IMPORTS t/ 205,250,324.27 CR 1,086,858,337.49 908,709,355.16 178,148,982.33 DR 27,101,341.94 CR
CA 01-000168 : SPIC N' SPAN LTD 605,412.27 CR 2,557,300.53 2,088,792.96 468,507.57 DR 136,904.70 CR
1 ('CA 01-000169 I UNIVERSAL CHURCH OF GOD 78.57 CR 11,031,734.91 11,031,845.54 110.63 CR 189.20 CR
1",,\ CA 01-000170 DILWINDER K KULAR ./ 419,400.00 CR 4,077,067.60 3,657,667.60 419,400.00 DR 0.00
..tA 01-000171 ABBAS EHSANI 111--.0 :~ 30,051,053.98 CR 187,590,937.80 163,109,034.12 24,481,903.68 DR 5,569,150.30 CR
•• " ·CA 01-000173 PEEKSKIL, INVESTMENT LTD 287,078.14 CR 64,045,100.03 49,080,067.29 14,965,032.74 DR 14,677,954.60 DR
.•.CA 01-000174 EAST AFRICAN FOUNDRY WORKS(K) L. 23,239,297.96 CR 499,478,298.42 465,006,541.52 34,471,756.90 DR 11,232,458.94 DR
CA 01-000176 SHAILEN J VISARIA 398,093.04 CR 8,650,560.85 8,218,316.46 432,244.39 DR 34,151.35 DR
CA 01-000177 MAYUR PATEL 0.00 5,186,715.05 5,195,644.10 8,929.05 CR 8,929.05 CR
CA 01-000178 CSA SYSTEMS (KENYA) LTD 0.00 28,000.00 28,000.00 0.00 0.00
D CA 01-000179 KINGSWAY MOTORS (K) LTD-SERVICE 26,952.54 CR 141,513,125.30 145,303,192.26 3,790,066.96 CR 3,817,019.50 CR
DCA 01-000180 KINGSWAY MOTORS (K) LTD-SPARES 13,484.50 CR 9,352,334.30 9,370,189.50 17,855.20 CR 31,339.70 CR
I CA 01-000181 DOBBIN ENTERPRISES 14,777.34 CR 8,442,484.10 8,455,964.25 13,480.15 CR 28,257.49 CR
'/" CA 01-000182 I NAIVASHA MATRESSES 12,074,491.68 CR 226,633,693.24 217,944,735.11 8,688,958.13 DR 3,385,533.55 CR
1
~"l,~cA 01-000183 ~ KARSAN K SEYANI 2,501,559.39 CR 41,884,512.41 39,386,465.02 2,498,047.39 DR 3,512.00 CR
CA 01-000184 THE COpy CAT LTD 1,317.73 DR 153,297,246.51 154,339,442.34 1,042,195.83 CR 1,040,878.10 CR
,'\).CA 01-000185 TOURING CARS KENYA LTD 0.00 4,120,000.00 4,120,000.00 0.00 0.00
CA 01 000186",~ BRAND IMPORTS(B) v 60,963.07 DR 64,545,200.30 66,345,685.96 1,800,485.66 CR 1,739,522.59 CR
-,CA 01-000187 BESTFAST CARGO (K) LTD 4,745.01 DR 40,541,526.88 40,060,009.25 481,517.63 DR 486,262.64 DR
"t'CA 01 000188 KHUSUBOO ENTERPRISES 98.41 CR 1,266,384.61 1,266,286.75 97.86 DR 0.55 CR
CA 01 000189<) DRlVE IN TYRE CENTRE 24,863,130.03 CR 206,429,122.13 182,528,424.17 23,900,697.96 DR 962,432.07 CR
CA 01-000190 KINGS CHEMISTS LTD( 590,663.33 CR 22,827,700.46 22,271,415.45 556,285.01 DR 34,378.32 CR
01-000191 I 229,516.11 • '4,112-,44L..t~ 3,912,658.95 199,782.95 29,733.16
'L CA
fl·,tCA 01-000192
JITENDRA
LIONS
SHAH
CLUB INTERNATIONAL DISTRI 0.00
CR
3,122,167.00, 3,122,174.60 7.60
DR
CR 7.60
CR
CR
CA 01-000193 PARMEX LTD 31,940.79 DR 22,669,539.89 \22,787,190,98 117,651.09 CR 85,710.30 CR
,1\l\CA 01-000194 MARITECH ENTERPRISES LTD 34,524.00 CR 5,975,961.00 5,941,437.00 34,524.00 DR 0.00
CA 01-000195 J & S SOLANKI '\ ~ 26.00 DR 1,277,365.00 1,455,040.00 177,675.00 CR 177,649.00 CR
CA 01-000196 CONTINENTAL BOARD OF COUSELLORS \\~L 41,433.61 CR 4,114,457.76 4,173,866.03 59,408.27 CR 100,841.88 CR
CA 01-000198 SHUKRI BARAMADI 500.00 DR 1,262,237.70 1,295,493.05 33,255.35 CR 32,755.35 CR
CA 01-000199 F. W NGATIA 706.80 DR 16,222,329.15 16,594,972,15 372,643.00 CR 371,936.20 CR
CA 01-000200 AMEE PROPERTIES LTD 6,995.80 DR 26,524,339.60 26,493,566.10 30,773.50 DR 37,769.30 DR
l~·CA 01-000201 HASHIM KHIDIR MOHAMED & ABDI MU 0.00 821,625.00 821,625.00 0.00 0.00
( CA 01-000202 ··' ....COMPULYNX LTD 10,117,319.02 CR 309,911,049.49 299,661,629.25 10,249,420.24 DR 132,101.22 DR
I,.CA 01-000203 MOTOR LINE SPARES 0.00 306,000.00 306,463.50 463.50 CR 463.50 CR
~ CA 01-000204 SIR ENTERPRISES LTD 48,048,019.70 CR 128,057,671.25 81,351,226.85 46,706,444.40 DR 1,341,575.30 CR

I .' ._-.-,
IIi' CA
0 CA
CA
01-000205
01-000206
01-000207
SWALEH IBRAHIM
CREATIVE
PACIFIC
KAMAU
INNOVATIONS
SYSTEMS LTD
(FUCHS OIL(/'
-./'

48,021,408.99
0.00
20.714.39 CR
CR
23,000.00
124,749,562.35
253,762,876.97
27,000.00
128,559,455.45
189,557,680.07
4,000.00
3,809,893.10
64,205,196.90
CR
CR
DR
4,000.00
3,830,607.49
16.183,787.91
CR
CR
DR
CA 01-000208 ADIL LAKHANI & MINAZ JAVER LA"'l 3,497,818.70 CR 10,031,199.75 ,6,533,758.66 3,497,441.09 DR 377.61 CR
'CA 01-000209 ITEL STATIOt-'-:RS 13,125.85 CR 10,670,279.90 -,...•.
/.0.680,637.35 10,357.45 CR 23.483.30 CR
~~----------------------------

'Charterhouse Bank Limited

PWA-79 Account Turnover Report Da 03/08/04 page: 5
Run Date: 03/08/2004 12:54:58 PM
Charterhouse Bank Limited From 01/01/98 to 03/08/04
------------------------------------------------~-----
Account Account
--------------------------------------------------------------------------------------
Number Opening Balance Debit Credit Turnover
Description closing
Amount Amount Balance
-------------------------------------------------------------------------------------------------------------------------------------------
CA 01-000210),.p\ ROXXON TRADING COMPANY 5,999,916.00 CR
CA 01-000211 MAKAL CONTRACTORS 124,462,210.40 118,567,094.00 5,895,116.40 DR
0.00 104,799.60 CR
40,051. 2} 40,051.25
CA 01-000212 MARA TRADING LIMITED 763,094.10 CR
0.00 0.00
CA 01-000213~~ ~AMAAL TYRES & ACCESSORIES 24,258,384.05 23,851,162.20 407,221.85 DR
4,031.40 DR 355,872 .25 CR
CA 01-000214 \;'KEMPAPER LTD ( 33,909,613.80 33,947,747.60 38,133.80 CR
38,540,278.99 CR 34,102.40 CR
916,171,195.50 869,879,682.58 46,291,512.92 DR
CA 01-000215 MALDE TRANSPORTERS LTD 3,115,089.75 CR 7,751,233.93 DR
CA 01-000216 AFRICA WASTE PAPER LTD 667,677,974.25 660,977,378.30 6,700,595.95 DR
28,986,885.83 CR 3,585,506.20 DR
356,434,999.07 320,188,739.22 36,246,259.85 DR
CA 01-000217 KENYA, COSMETICS INDUSTRY LTD 4.60 DR 7,259,374.02 DR
15,955,998.20 16,148,243.90 192,245.70 CR
CA 01-000218 ESQUIRE TYRE SALES LIMITED 0.20 DR 192,241.10 CR
CA 01-000219 PAMPAS PARK HOTEL 4,619,600.00 4,633,726.10 14,126.10 CR 14,125.90 CR
'CA 01-000220 "\~ ATYANA LYNKS LIMITED. /<. 262.30 DR
0.00
756,246.40
158,054.75
870,720.70
158,054.75
114,474.30 CR 114,212.00 CR
CA 01-000221 WAUl MUUI & CO " 46,567,199.94 CR
0.00 0.00
o CA 01-000222 UKAY ESTATES LTD 240,165,489.00 205,026,610.01 35,138,878.99 DR
75,640.39 CR 11,428,320.95 CR
244,974,345.57 244,292,243.28
CA 01-00022~
CA 01-000224
CA 01-00022
~r~ MUINANI ENTERPRISES LTD
FARMHOUSE PRODUCTS LIMITED
OWEN GITAU
30,189.15
2,338.70
CR
DR
3,433,481.60
23,750,498.50
4,909,203.35
32,722,724.55
682,102.29
1,475,721.75
8,972,226.05
DR
CR
CR
606,461. 90
1,505,910.90
8,969,887.35
DR
CR
CR
2,866.30 DR 2,708,502.20 2,821,838.32
CA 01-000226 PETROLEUM & IND. SERVICES LTD. 15,001,050.20 CR 98,357,443.20
113,336.12 CR 110,469.82 CR
CA 01-000227 COMBINED ENTERPRISES LTD 87,385,172.55 10,972,270.65 DR 4,028,779.55 CR
209.40 DR 16,987,291. 60 16,999,852.55
CA 01-00022~ INTERFAST LTD 12,560.95 CR 12,351.55 CR
0.00 37,488.80 37,488.80
CA 01-000229 PACE ADVERTISING PACE ADVERTISI 0.00 0.00
28.65 DR 205,300.00 206,241. 80
CA 01-000230 'P)l'lo RASHID A. AMAN 0.00
941. 80 CR 913 .15 CR
600,000.00 600,000.00
CA 01-000231 SWETA A. ,RAISHI M. & RASILA U, 27,304.50 DR
0.00 0.00
CA 01-00023 KIFARU CARVING SUPPLY 25,295,803.22 25,323,107.72 27, 304. 50 CR
0.00 0.00
CA 01-000233 COMMUNICATING ARTISTS 1~·(1. 1l$,{\-'<) 700,000.00 714,934.30 14,934.30 CR
519.71 CR 14,934.30 CR
CA 01-000234 0 VIKRUT PREREQUISITES 14,930,697.90 14,887,040.04 43,657.86 DR
1,829,900.00 CR 4 3 , 13 8 . 15 DR
CA 01-000235 FARM TEA PACKERS 2~,648,697.45 20,881,674.15 1,767,023.30 DR
1,398,195.90 CR 62,876.70 CR
117,528,406.09 116,174,721.80 1,353,684.29 DR
CA 01-000236] PEGRUME LIMITED 1,556.91 CR 448,514.71
44,511.61 CR
CA 01-000237 SHANTA SHAH 446,957.80 1,556.91 DR 0.00
4, 947, 234. 30 CR 99,157,114.20 94,209,879.90
CA 01-000238 AFRICA ILLUSTRATIONS LIMITED 4,947,234.30 DR 0.00
0.00 0.00 0.00
CA 01-000239 I"" BEATRICE NDUTA KIARIE 1,021.30 DR
0.00 0.00
480,866.25 534,980.55 54,114.30 CR
CA 01-000240 ~ INTERNATIONAL COMMERCIAL CO. 865,034.20 CR 50,924,184.35
53,093.00 CR
CA 01-000241 v SAVA INDUSTRIES LTD 50,354,327.20 569,857.15 DR 295,177 .05 CR
1,000,000.00 CR 1,137,500.00 142,500.00
CA 01-000242~ MANO] SHAH R (LIONS A/C) 995,000.00 DR 5,000.00 CR
,A 01-000243 / SHAMASH & BROS. DISTRIBUTORS
3,5-27,739.10 CR
219.60 DR
93,549,213.86~
56,988,377: 70-
92,443,975.71
57,146,851. 20
1,105,238.15
158,473.50
DR
CR
2,422,500.95 CR
CA 01-000244~ SATGURU INVESTMENTS LTD 9,294.48 CR 158,253.90 CR
CA 01-000245~ ..... ..)l8DI
MUNIM HAJI 3,234,697.01 3,635,402.45 400,705.44 CR 4b9 , 999 . 92 CR
16.99 CR 5,542,728.39 5,554,628.34
CA 01-000246~PEGRUME LIMITED~ 11,899.95 CR 11,916.94 CR
65,773,046.36 CR 491,981,635.07 431,663,883.14
CA 01-000247 MEHRAZ EHSANI vr 60,317,751. 93 DR 5,455,294.43 CR
100,788.43 CR 3,691,247.28 3,918,835.32
CA 01-000248 PETER JOHN MINVOLTA & CATHERINE' 0.00 3,008,210.00
227,588.04 CR 328,376.47 CR
CA 01-000249./ ITALIAN STYLES LTD '/t 3,008,210.00 0.00 0.00
3,606.20 DR 72,170,689.00 112,892,453.90
CA 01-000250 MAXON (K) LIMITED 40,721, 764.90 CR 40,718,158.70 CR
0;00 1,084,750.00 1,084,750.00
CA 01-000251 GATEWAY TRANSPORT CO. 0.00 0.00
0.00 350,046.45 350,046.45
CA 01-000252~ TECOF INTERNATIONAL LIMITED 0.00 0.00
0.00 358,670.00 359,745.90 1,075.90 CR
CA 01-000253~ TRAX CONSTRUCTION LTD 1,225.00 DR
1,075.90 CR
CA 01-000254 / TEBEBE Y BERHANE 14, 384, 564.70 14,395,574.00 11,009.30 CR 9,784.30 CR
0.00 230,000.00 235,200.00 5,200.00 CR
CA 01-000255 IMPCON (AFRICA) LIMITED 5,200.00 CR
436.90 CR 2,663,966.16 2,663,533.76 432.40 DR
CA 01-000256v:, COMMUNICATIqN CAR~IER LTD 4.50 CR
85,109,924.85 CR 247,344,587.69 171,034,669.91 76,309,917.78 DR
.CA 01-0002571/ CEMPACK LTD"~' 62,438,962.91 CR
8,800,007.07 CR
853,250,479.95 798,356,957.33 54,893,522.62. DR 7,545,440.29 CR
CA 01-000258 JINA RATNA CONTRACTOR 0.00
CA 01-000259 GUL LAMP SHADES 10,000,000.00 10,000,000.00 0.00 0.00
0.00 230,677.00 234,426.00 3,749.00 CR
CA 01-000260 DOREEN NAMULANDA VESTER 3,749.00 CR
0.00 0.00 0.00 0.00
CA 01-000261/ MBc,r;o IMPORTS & EXPORTS AGENCJ~ 0.00
0.00 242,350.00 248,500.00 6,150.00 CR 6,150.00 CR
 cha rter house Bark L imi ted
PWA-79 Report Da
Account Turnover 03/"8/04 Page:
Charterhouse Bank Limited Run Date: 03/08/2004 6
From 12: 54: 59 PM
Account 01/01/98 to 03/08/04
--------------------------------------------------------------------------------------------------------------------------------------------
ACcount
Number Description Opening Balance Debit Credit Turnover
Amount Amount Closing
CA 01-000262
---------------------------------------------------------------------------------------------------------------------------------------
WAKWETU RADIO HOUSE Balance
CA 01-000263'j MAHESH TAILOR & PARTNERS 0.00 2,328,051.80
CA 01-000264 0.00 2,328,210.55 158.75 CR
CINDERELLA ICE PARLOUR LTD 35,822,950.90 35,825,210.00 158.75 CR
CA 01-000265 v: CRYSTAL CREDIT LIMITED 0.00 7,650.00 2,259.10 CR 2,259.10 CR
CA 01-000266 17,202,761. 86 CR 35,000.00 27,350.00 CR
SHETHIA CREDIT LTD. 72,478,155.45 57,918,717.69 27,350.00 CR
CA 01-000267./' ASCAP ENTERPRISES LTD 2,801.40 DR 8,044,505.10 14,559,437.76 DR 2,643,324.10 CR
0.00 8,060,119.08 15,613.98 CR
CA 01-000268./ MILLENNIUM HOLDINGS LTD 46,287,405.60 12,812.58 CR
CA 01-000269 ~ SKI-PIX LTD ~ 0.00 46,308,278.20 20,872.60 CR
89,396.30 89,397.50 20,872.60 CR
CA 01-000270 MEHRAZ EHSANI 4,204.05 DR 18,327,206.65 1.20 CR 1.20 CR
- g CA 01-000271 ~ ASPEN HILL LIMITED 577 .00 CR 18,345,224.65 18,018.00 CR
330,931.00 330,354.00 13,813.95 CR
CA 01-000272 ~ EPSOM HOLDINGS CORPORATION LIMI./' 26,974.27 DR 71,016,929.20 577.00 DR 0.00
CA 01-000273 0.00 73,892,003.17 2,875,073.97 CR
DAVID M MEREKA 114,900,000.00 114,97.1,804.30 2,848,099.70 CR
CA 01-000274 ~. MUSSILLI & MUSSILLI~OCATES-O 295.90 CR 15,524,329.00 71,804.30 CR 71,804.30 CR -
••CA 01-000275 ./ C. 1. L 3,713.67 DR 15,527,840.70 3, 511. 70 CR
22,327,942.83 22,405,720.03 3,807.60 CR
CA 01-000276 ".. MOSOCQ TRADERS LTD 313,427.79 CR 2~6,791,388.70 77,777.20 CR 74,063.53 CR
CA 01-000277"" 1,500,000.00 CR 243,466,433.20 6,675,044.50 CR
LIONS CLUB INTERNATIONAL DISTRI 1,500,000.00 6,988,472.29 CR
CA 01-000278 v 6TH LIONS AFRICA CONFERENCE 200.00 DR 10,690,363.85
0.00 1,500,000.00 DR 0.00
CA 01-000279 0.00 10,693,272.50 2,908.65 CR
DR.KIRTEE BABUBHAI PATEL 810,728.50 810,730.00 2,708.65 CR
CA 01-000280 v' MOHAM ED P J00 1,699,922.70 CR 11,153,434.20 1. 50 CR 1. 50 CR
CCA 01-000281' 500,164.12 CR 9,495,745.50 1,657,688.70 DR
SHAIKH ABDUL &SHAIKH ALTAF 5,313,326.12 4,852,693.90 42,234.00 CR
'CA 01-000282 v SHAIKH ABDUL & SHAIK ALTAF 0.00 460,632.22 DR 39,531.90 CR
0.00 0.00
CA 01-000283../ MOTOR BOTIQUE 31,175.20 CR 28,000,270.30 0.00 0.00
CA 01-000284./ B.A. PATEL 19,990,876.35 CR 28,005,751.10 5,480.80 CR
407,310,840.36 388,803,497.13 36,656.00 CR
CA 01-000285 '/ PEGRUME LTD-VODAFONE A/C 31,018.18 CR 17,203,746.85 18,507,343.23 DR 1,483,533.12 CR
1,696.07 DR 17,330,508.70 126,761.85 CR
CA 01-000286 P.K.PATEL & ASSOCIATES LTD 85,973,401.20 86,392,635.97 157,780.03 CR
CA 01-000287 ASHUTOSH ENTERPRISE 0.00 7,279,160.00 419,234.77 CR 417,538.70 CR
CA 01-000288 0.00 7,296,609.20 17,449.20 CR
FAR EAST TECHNOLOGIES (EPZ) LTD 2,162,254.80 2,163,161.80 17,449.20 CR
CA 01-000289./ ANIL PAWAR, SHIV R GOEL & SHENA 0.00 3,923,701.75 907.00 CR 907.00 CR
1,598,203.35 CR 3,945,000.00 21,298.25 CR
CA 01-000290 KENMOSA HOLDINGS 15,726,413.95 21,298.25 CR
0.00 14,382,725.27 1,343,688.68 DR
CA 01-000291-:/ KIRIT N PATEL ('U • 4-'1S1.? 110,163,193.55 110,382,585.30 254,514.67 CR
CA 01-000292 KASSIRI ESSAJEE & ASSOCIATES 5,501,469.35 CR 10,377,906.37 219,391.75 CR 219,391. 75 CR
1,000,000.00 4,879,921.35 5,497,985.02 DR
CA 01-000293~ MARKFIRST (KENYA) LTD CR 2,582,450.00 3,484.33 CR
121,601.40 CR 1,683,500.00 898,950.00 DR
o CA 01-000294.~ KINGSWAY AUTOMART LTD 113,091,647.92 101,050.00 CR
12,946,036.55 CR 114,035,139.63 943,491. 71 CR
CA 01-000295 ../ REATA PRINTERS
CA 01-000296 / NAVIN K. SHAH WHOLESAL~ . 1.90 DR
2,091,781,471.68
4,589,153.80 ...
2,102,049,501.54
4,641,832.70
10,268,029.86 CR
1,065,093.11 CR
23,214,066.41 CR
CA 01-000297~ BRAND IMPORTS 2,195.15 CR· 1,484,103.70 52,678.90 CR 52,677.00 CR
CA 01-000298 0.00 1,599,620.10 115,516.40 CR
~CRUCIAL PROPERTIES LTD 107,809,908.33 109,087,317.13 117,711.55 CR
CA 01-000299 PEGRUME LIMITED - KQ A/c 0.00 3,920,000.00 1,277,408.80 CR 1,277,408.80 CR
CA 01-000300 32,370.20 CR 3,920,000.00 0.00
- CRUCIAL PROPERTIES LTD-KSH A/c 18,951,937.20 21,593,951.16 0.00
CA 01-000301 TUSKER MATTRESSES LTD 0.00 103,596,400.00 2,642,013.96 CR 2,674,384.16 CR
CA 01-000302 17,058,403.74 CR 105,148,488.00 1,552,088.00 CR
DAEWOO MOTORS (K) LTD 4,251,031,163. 80 )I:~ 300,403,533.53 1,552,088.00 CR
CA 01-000303 PEGRUME LTD - TKL 5,966.58 CR 49,372,369.73 CR 66,430,773.47 CR
39,308,117.78 39,302,794.40 5,323.38 DR
CA 01-000304\LAKMER TECHS LTD 468.50 CR 9,243,114.40 643.20 CR
0.00 10,367,788.63 1,124,674.23 CR
CA 01-0003051,,11'WEIGH BRIDGE ESTATy-TD 2,911,265.65 2,911,265.65 1,125,142.73 CR
CA 01-00030~ HOT NET LIMITED 0.00 100,000.00 0.00 0.00
CA 01-000307 0.00 100,000.00 0.00
REKHA M.· SHAH 150,000,140.00' 150,000,200.00 0.00
CA 01-000308 () J ETHALAL MANJI GONDARIYA
2,650,349.50 CR 57,244,052.05 60.00 CR 60.00 CR
0.00 54,593,703.95 2,650,348.10 DR 1.40 CR
CA 01-000309 ORCHID DETECTION SYSTEMS LTD 89,170,445.80 89,176,100.91
CA 01-000310' \1\' SEALOL TECHNOLOGY SERVICES LTD 1,148,326.50 CR 19,605,040.00 5,655.11 CR 5,655.11 CR
0.00 18,256,903.80 1,348,136.20 DR
CA 01-000311 NEW LOOK (MSA) LTD 273,496.80 273,496.80 199,809.70 DR
o CA 01-000312
KAMAL PROPERTIES LTD 1,317.50 CR 42,732,992.15 0.00 0.00
CA 01-000311 218.19 DR 42,899,758.60 166,766.45 CR
ALLOY STEEL & CASTINGS LTD 1,793,957.00 1,772,807.79 168,083.95 CR
33,987,346.77 CR 748,541,562.67 21,149.21 DR 21,367.40 DR
7,932,049.11 40,609,513.56 DR 6,622 ,166 79 DR
 charterh0use Bank Limited Repo rt oa , . 03/08/04 page: 7
PWA-79 Account Turnover Run Date: 03/08/2004 12: 54; 59 PM
charterhouse Bank Limited From 01/01/98 to 03/08/04
------------------------------------------------------------------------------------------.--------------------------------------------------
Account Account operri ng Balance Debi t Credi t Turnover cl osi n9
Number Description Amount Amount Balance
----- ---------------------------------~-------~-------------------------------------------------------------------------------------------
CA 01-000314 MOHAMUDA. MOHAMUD V 1,965.10 CR 143,967,193.10 143,967,964.95 771.85 CR 2,736.95 CR
CA 01-000315 DISTRIBUTORS & HAULERS (p) LTD 0.00 5,000.00 10,000.00 5,000.00 CR 5,000.00 CR
CA 01-000316' J~ CHAITANYA SEVAK 0.00 0.00 10,000.00 10,000.00 CR 10,000.00 CR
CA 01-000317.' KANAY SHAH 3,489.86 CR 3,817,863.23 3,837,717.87 19,854.64 CR 23,344.50 CR
CA 01-000318 DR. ABDIRIZAK OSMAN & MRS K. AL 0.00 9,444,563.75 9,489,675.05 45,111.30 CR 45,111.30 CR
CA 01-000319 MARQUEE SERVICES 3,867.43 DR 10,218,800.00 10,277,629.53 58,829.53 CR 54,962.10 CR
CA 01-000320 ROADSTAR LIMITED 82,055,518.12 CR 1,064,949,282.64 983,899,753.85 81,049,528.79 DR 1,005,989.33 CR
t\ ... CA 01-000321 (,) KITEK (7) LTD singly 44,161,956.38 CR 320,021,682.15 265,662,541.28 54,359,140.87 DR 10,197,184.49 DR
\ CA 01-000322 BUSINESS TRADING MASTERS ( K ) 16,000,000.00 CR 16,405,000.00 405,000.00 16,000,000.00 DR 0.00
CA 01-000323~1:> NISHIT K PATEL '\'1. 7,957,686.24 CR 120,895,531.28 105,351,368.11 15,544,163.17 DR 7,586,476.93 DR
CA 01-000324 SUNDRIES BARGAIN LTD SINGLY 0.00 89,164,563.85 89,181,246.50 16,682.65 CR 16,682.65 CR
CA 01-000325 CLASSIC AGRICULTURAL COMMODITIE l,002,193.i7 CR 26,471,035.03 22,571,493.92 3,899,541.11 DR 2,897,347.94 DR
CA 01-000326 MBAMBA SALUMU ZE KUSA 16,826.25 DR 35,045,463.20 35,967,638.90 922,175.70 CR 905,349.45 CR
~'A 01-000327 CRYSTAL ICECREAM (p) LTD JOINTL 14,971.20 DR 162,757,109.89 167,617,507.90 4,860,398.01 CR 4,845,426.81 CR
CA 01-00032& KENYA VEGEXT ( E.P.Z. ) LTD ElT /' 0.00 0.00 10,000.00 10,000.00 CR 10,000.00 CR
CA 01-000329\1~,1\ FAULU TWO THOUSAND LIMITED SING ~ 0.00 1,575,250.00 1,575,250.00 0.00 0.00
CA 01-000330) NARENDRA RAICHAND SHAH SINGLY./ 11,993,760.51 CR 129,825,863.36 117,837,930.16 11,987,933.20 DR 5,827.31 CR
CA 01-000331 WALLANCE HOLDINGS LTD SINGLY '/". 11,549.30 DR 752,014,183.80 752,425,328.29 411,144.49 CR 399,595.19 CR
CA 01-000332 SAMUS SERVICES SINGLY / 2,499,000.00 CR 10,726,905.08 8,241,368.10 2,485,536.98 DR 13,463,02 CR
CA 01-000333 WELLEN INTERNATIONAL LIMITED SI . 23,972.60 DR 396,557,368.15 396,762,471.50 205,103.35 CR 181,130.75 CR.
CA 01 000334 SEAL HONEY LIMITED EITHER 1,513.00 DR 48,170,807.30 48,172,353.75 1,546.45 CR 33.45 CR
CA 01-000335 NAIVASHA SELF-SERVICE STORES LT 10,755.42 DR :737,936,647.58 738,712,197.50 775,549.92 CR 764,794.50 CR
CA 01-000336 PACIFIC ACE LIMITED JOINTLY 295.96 DR 3,404,109.99 2,590,074.05 814,035.94 DR 814,331.90 DR
CA 01-000337 SALUTE HOLDINGS LTD JOINTLY / 7,956.66 DR 133,377,043.09 135,310,440.49 1,933,397.40 CR 1,925,440.74 CR
CA 01-000338 BOOKS FIRST LIMITED EITHER OR 82,375,682.31 CR 473,699,715.22 387,147,664.31 86,552,050.91 DR 4,176,368.60 DR
1"\\ CA 01-000339 .'""" KARIUKI MUIGUA & CO., OFFICE AI- 0.00 0.00 0.00 0.00 0.00
CA 01-000340, HIDDEN TREASURES BOOK WHOLESALE V 18,600,969.76 CR 135,149,783.95 116,067,565.05 19,082,218.90 DR 481,249.14 DR
CA 01-000341 I •..-KARIUKI MUIGUA & CO.-OFFICE A/c 0.00' 1,307,252.00 1,319,885.00 12,633.00 CR 12,633.00 CR
CA 01-000343)J.('<DAIKIN COOLING SERVICES LTD SIN 4,040.00 DR 23,021,624.81 23,040,890.40 19,265.59 CR 15,225;59 CR
CA 01-000344 \ QUICK BITES LTD EITHER 3,965.96 DR 5,324,550.55 5,403,233.95 78,683.40 CR 74,717.44 CR
CA 01-000345 1 GITHANG INVESTMENT LTD 500.00 DR 16,736,400.00 16,737,800.00 1,400.00 CR 900.00 CR
CA 01000346 , WINES OF THE WORLD LTD JOINTLY "1\', 23,177.61 DR .'5,272,268.70 35,577,136.23 304,867.53 CR 281,689.92 CR
CA 01-000347 COMMERCIAL CORPORATION (K) LTD' 29,816,292.82 CR 893,625,879.10 868,912,367.37 24,713,511.73 DR 5,102,781.09 CR
OCA 01-000348l\!' KINGSWAY TYRES LTD - CORNER PLA 7,789,715.85 CR 126,820,168.35 120,137,167.46 6,683,000.89 DR 1,106,714.96 CR
CA 01-000349 LITELINE ELECTRONICS LTD SINGLY 6,820.90 DR 5,320,956.50 4,812,662.95 508,293.55 DR 515,114.45 DR
:CA 01-000350. 1
HIDDEN TREASURE BOOK WHOLESALER V 5,162.68 CR 10,220,040.18 10,596,356.53 376,316.35 CR 381,479.03 CR
CA 01-000351 HANIF AYOOB SULEIMAN 30,384.64 DR 34,772,635.00 34,949,335.30 176,700.30 CR 146,315.66 CR
CA 01-000352 TRITON PETROLEUM CO. LTDV' ~4,367,237.45 CR 2,000,518,723.96 1,920,318,698.06 80,200,025.90 DR 75,832,788.45 DR
CA 01-000353 LITELINE ENTERPRISES LTD 4,260.90 DR 16,231,262.00 16,267,293.80 36,031.80 CR 31,770.90 CR
LA 01-000354 ACME CONTAINERS LTD ANY 0bl-E 5,294,855.40 CR 87,831,113.03 75,397,693.90 12,433,419.13 DR 7,138,563.73 DR
CA 01-000355 D. G. JONES & PARTNERS V 0.00 1,717,435.75 1,717,435.75 0.00 0.00
CA 01-000356 MAQUEE INTERNATIONAL 0.00 0.00 14,950.00 14,950.00 CR 14,950.00 CR
·CA 01-000357
CA 01-000358
CA 01-000359
ELDO TYRE CENTRE
ASHOK PATEL & NISHIT
BEPCO PARTS (K) LTD
PATEL
,
r-/ ~
19,716,454.15
9,487.78
15,986.10
CR
DR
CR
60,123,024.45
19,388,051.02
40,328,330.80
42,276,967.56
19,159,859.30
41,026,104.90
17,846,056.89
228,191.72
697,774.10
DR
DR
CR
1,870,397.26
237,679.50
713,760.20
CR
DR
CR
CA 01-000360 REALITY TRADING COMPANY LTD ,. 48,371.44 CR 240,579,186.65 240,179,896.34 399,290.31 DR 350,918.87 DR
! CA ()l-()()(Y3f,lMEGHJI SHAH AND SONS LIMITED 0.00 1,400.00 20,000.00 18,600.00 CR 18,600.00 CR
:c_. CA 01-000362
CA 01-000363
BEL PHONES (2000)
DAEWOO MOTORS INT'L
LIMITED
LTD - SERVI
497.60
36,046.43
DR
DR
11,918,225.80
76,523,710.69
11,933,302.09
76,618,314.77
15,076.29
94,604.08
CR
CR
14,578.69
58,557.65
CR
CR
CA 01-000364 DAEWOO MOTORS INT'L LTD - VEHIC 3,509,010.26 CR 76,512,182.20 73,654,739.04 2,857,443.16 DR 651,567.10 CR
CA 01-000365 DALBIT INVESTMENTS LTD ~\ 3,139,765.56 DR 3,984,906,318.70 3,999,894,287.27 14,987,968.57 CR 11,848,203.01 CR
CA 0>000366",\'< LOGAN'S LTD 1,052.00 DR 12,929,807.65 ',389,826.95 9,539,980.70 DR Cl,541,032.70 DR

\
 rharterhouse Bank Limited
PWA-79 Account Turnover ~eport Da. 03/08/04 Page:
Charterhouse Bank Limited Run Date: 03/08/2004 12:54:59 PM 8
Account From 01/01/98 to 03/08/04
--------------------------------------------------------------------------------------------------------------------------------------------
Account
Number Description Openi1g Balance Debit Credit
Amount Turnover Closi ng
CA 01 000367 Amount
--------------------------------------------------------------------------------------------------------------------------------------------
MBWANJI MILLERS LTD
CA 01 000368 ,,>\h Balance
EXPRESS IMPEX LIMITED 9,992,498.60 CR 34,563,492.21
CA 01-000369 27,051,096.62 7,512,395.59 DR
ALLOY STEEL CASTINGS LTD - EADB 0.00 5,000.00 2,480,103.01 CR
CA 01-000370 BRAND VAN SALES 5,000.00 0.00
0.00 42,715,166.70 42,722,624.20 0.00
CA 01-000371 MEGA GOLDEN CLEARING 6,514.91 CR 2,182,183.50 7,457.50 CR
CA 01-000372 2,175,921.69 7,457.50 CR
UNIVERSAL CHURCH OF THE KINGDOM 1,261.75 DR 2,853,531.90 6,261.81 DR 253.10 CR
CA 01-000373 3,253,795.00 400,263.10 CR
. CLASSIC MOTO~ARTS LTD 500.00 DR .5,390,863.65 399,001. 35 CR
CA 01-000374 1(70. SHAH 5,457,246.50 . 66,382.85 CR
0.00 679,298.00 680,000.00 65,882.85 CR
CA 01-000375 DAVID F SMITH 60,956,389.15 CR 591,570,597.53 702.00 CR
CA 01-000376t-1l\ 525,417,241.81 702.00 CR
SCORPIO TELECOMMUNICATION LTD 2,289.88 CR 1,105,852.78 66,153,355.72 DR 5,196,966. 57 DR
CA 01-000377 1,105,178.70 674.08 DR
M. R. SHAH CONSTRUCTION (K) LTD 36,920.52 DR 150,589,597.33 1,615.80 CR
CA 01-000378 150,911,454.91 321,857.58 CR
SAVANNAH ACADEMY LTD 0.00 163,081.25 171,681.25 284,937.06 CR
CA 01-000379 Communication Concepts Ltd 8,000,600.98 CR 11,126,423.98 8,600.00 CR
CA 01-000380 2,767,499.50 8,600.00 CR
HIDDEN TREASURES STAFF 15,371,220.50 CR 52,774,833.65 8,358,924.48 DR 358,323.50 DR
CA 01-000381 41,337,162.50 11,437,671.15 DR
LEXYS COLLECTIONS 0.00 1,157,469.00 3,933,549.35 CR
CA 01-000382 1,160,134.85 2,665.85 CR
CA 01-000383 MEKATECH SERVICES & SUPPLIES LT 3,998,827.49 CR 36,229,490.60
31,695,720.86 2,665.85 CR
THEMIS INVESTMENTS LTD ~ 0.00 17,450,280.19 4,533,769.74 DR 534,942.25 DR
CA 01-000384 18,865,361.10
CA 01-000385
GIDEON NDAMBUKI SINGLY vr 3,980,041.35 CR 80,481,819.90
69,100,615.25
1,415,080.91 CR 1,415,080.91 CR
GREAT PRESENTATION CO. LTD 35,037.33 DR 27,736,683.38 11,381,204.65 DR 7,401,163.30 DR
CA 01-000386 4,155,807.82 CR 16,445,662.80 27,352,805.66 383,877.72 DR
CA 01~000387 YANKEE FOODS LIMITED ANY TWO TO 12,040,014.54 418,915.05 DR
CROWN SEVENTY LIMITED EITHER ON 0.00 2,114,406.00 4,405,648.26 DR 249,840.44 DR
CA 01-000388 2,127,047.00 12,641.00 CR
TRITON NETWORK SOLUTIONS LTD AS 0.00 0.00 12,641. 00 CR
CA 01 000390 10,000.00 10,000.00 CR
RHODA NTHAMBA MBATO 0.00 6,042,929.90 10,000 .00 CR
CA 01-000391 6,827,577.60 784,647.70 CR
DIAMOND FOODS SUPPLIERS 0.00 1,500.00 5,000.00 784,647. 70 CR
CA 01-000392 GAl THO OIL LTD 0.00 5,404,478.40 3,500.00 CR
CA 01-000393 5,539,180.90 3,500.00 CR
NEPTUNE SOFTWARE LIMITED SINGLY 3,000.00 DR 20,163,910.12 134,702.50 CR 134,702.50 CR
CA 01-000394 1,401,880.20 CR 31,575,048.70 20,591,873.70 427,963.58 CR
THE SIMPSON CO. EASTERN AFRICA L 29,593,933.75 424,963. 58 CR
I CA 01-000395 SELFWILL FOODS J P MISHRA 0.00 813,000.00 1,981,114.95 DR
819,200.00 579,234.75 DR
CA 01-000396·' KITEK (7) LTD, KAHAWA 0.00 369,500.00 6,200.00 CR
CA 01-000397 till) 326,251.00 6,200.00 CR
LAVINGTON GREEN BOOKSHOP LTD 8,012,122.80 CR r 174,859,794.87 43,249.00 DR 43,249.00 DR
CA 01-000398 144,542,060.20 30,317,734.67 DR
HIGH TOUCH LTD SINGLY 759.42 DR 548,640.08 587,675.84 22,305,611.87 DR
CA 01-000399 MAHESH SHASTRI Raj Parmar 521,028.28 CR 15,145,277.89 39,035.76 CR 38,276 .34 CR
CA 01-000400 14,010,142.96 1,135,134.93 DR
SIMBA TECHNOLOGY LTD 0.00 0.00 614,106.65 DR
CA 01-000401 7,879,484.46 CR 29,857,436.47 0.00 0.00
COpy CAT LTD ANY TWO JOINTLY 25,887,269.85 0.00
CA 01-000402 UNlfONE INVESTMENTS LTD 9,392.68 DR 154,756,343.92 3,970,166.62 DR 3,909,317.84 CR
'1 • CA 01-000403 3,289,250.00 CR _ 315,871,737.50 152,397,793.40 2,358,550.52 DR
KISUMU TYRE CENTRE 298,286,730.60 2,367,943.20 DR
CA 01-000404 8,970,593.75 CR 19,238,788.24 17,585,006.90 OR 14,295,756.90 DR
THEMIS INDUSTRIAL SERVICES txIS 10,307,701.00
CA 01-00040511)t\ SMEET SHAH & DILPUN SHAH ~ 12,859.65 DR 7,162,029.10 8,931,087.24 DR 39,506.51 CR
CA 01-000407 7,247,634.00 85 ,604 .90 CR
YOUNG EXECUTIVES LIMITED 73,428.87 DR 156,022,833.53 156,870,375.16 72,745.25 CR
CA 01-000408 SIMBANET COM LTD 107,871.00 CR 6,865,464.85 847,541.63 CR 774,112.76 CR
CA 01-0004101'1'H,KUKI INVESTMENTS 7,135,725.23 270,260.38 CR
409,700.50 CR 26,081,565.30 378,131. 38 CR
CA 01-0004111 25,298,568.85 782,996.45 DR
SHAH KANJI LALJI & SONS K. LTD 0.00 0.00
0.00 373,295.95 DR
CA 01-000412 90.27 DR 4,910.51 0.00 0.00
YELLOWSTONE ENTERPRISES LTO / 5,001.00
CA 01-000414 JAMIL ASAD ANWAR 35,186.99 CR 11,374,912.96 90.49 CR 0.22 CR
CA 01-000415 12,122,386.70 747,473.74 CR
D. SHAH & S. SHAH KNOWN TO THE 2,012.25 CR 11,622,242.40 11,639,350.55 782,660.73 CR
CA 01-000416 0.00 1,500,000.00. 17,108.15 CR 19,120.40 CR
GREEN CORNER CAFE LTD 1\\1\~~~~\1 'I~Qlql(1 1,500,000.00
CA 01-000417~" HAMED EHSANI & S,R, SHAH N' . 8,334.88 CR 115,295,750.68 0.00 0.00
CA 01-000418 115,406,309.62 110,558.94 CR
WALl MOHAMED & CO. LTD 16,342.37 CR 11,137,449.25 11,142,514.25 118,893.82 CR
CA 01-000419 SKYPERTH ENTERPRISES 2,227.62 DR 1,020,940.58 5,065.00 CR 21,407.37 CR
CA 01-000420 1,072,356.28 51,415.70 CR
INTRA MARKET TRADIN~ 500.00 DR 18,001,249.00 18,015,059.65 49,188.08 CR
I _ 'CA 01-000421 PAUL KIBUGI MUITE ~ 500.00 DR 15,735,000.00 15,748,526.75
13,810.65 CR 13,310.65 CR
- CA 01-000422 ",\'1 NILE CONSOLIDATED HOLDINGS LTC 4,398,038.33 CR~32,945,055.33 13,526.75 CR 13,026.75 CR
~8,713,960.69 4,231,094.64 DR
654,339.23 CR 12,268,231.00 ,,646,386.05 166,943. 69 CR
621,844.95 DR 32,494.28 CR
 Charterhouse Bank Limited
PWA-79 Account Turnover Report Da 03/08/04 page:
Charterhouse Bank Limited Run Date: 9
03/08/2004 12:55:00 PM
From
Account
-----------------------------------------------.--------------------------------------------------------------------------------------------
ACcount 01/01/98 to 03/08/04
Number Description Opening Balance Debit Credit
Amount Turnover Closing
Amount
---------------------------------------------------------------------------------------------------------------------------------------
CA 01-000423 MUCTAR MOHAMED ./ 131.32 CR Balance
CA 01-000424 DILPUN G SHAH y' 285.35 CR 19,082.00 20,000.00 918.00 CR
o CA 01-000425 KlNGSWAY TYRS LTD( pi ranha Cent 24,415.09 CR O.OD 10,000.00 1,049.32 CR
oCA 01-000426 KINGSWAY TYRES LTD(university W / 31,422.54 DR 48,774,312.17 10,000.00 CR 10,285.35 CR
49,146,430.49 372,118.32 CR
CA 01-000427 KARIUKI MUIGUA & CO., CLIENTS A~.. 26,089.91 CR 341,474,930.28 343,418,922.96 396,533.41 CR
CA 01-000428 NASSIR AHMED IBRAHIM 3,413.22 CR 25,739,562.22 1,943,992.68 CR 1,912,570.14 CR
~4,337,359.15 1,402,203.07 DR
CA 01-000429 V - MARKET CHOICE LIMITED 47,442.51 DR '81,178,001.48 81,178,177.35 1,376,113.16 DR
CA 01-000430 HUMPHREY KARIUKI NDENGWA 4,017.90 CR 75,554,337.30 175.87 CR 3,589.09 CR
76,562,379.50 1,008,042.20 CR
CA 01-000431 CHANCERY PRODUCTIONS LIMI~ 1,323.19 CR 12,560,639.21 13,006,933.81 960,599.69 CR
(). ' . CA 01-000433\ ,~, 0 SHAH & MR. R'VITHLANI .' 42,558.83 CR 158,900.00 446,294.60 CR 450,312.50 CR
I 188,202.00 29,302.00 CR
~A 01-000454 t MEDIKEM INTERNATIONAL LTD 58,530.05 CR 35,653,057.66 35,666,272.02 30,625.19 CR
CA 01-000455 BlPINCHANDRA HIMATLAL VORA 2,566.58 CR 7,582,863.94 13,214.36 CR 55,773.19 CR
7,566,133.95 16,729.99 DR
CA 01-000456 MR. NILAY MALDE 8,020.18 CR 7,585,183.23 7,599,639.45 41,800.06 CR
CA 01-000457' NEPTUNE SOFTWARE LIMITED 4,738.87 CR 4,668,526.85 14,456.22 CR 17,022.80 CR
5,281,700.00 613,173.15 CR
CA 01-000460 LEXUs STATIONERS LIMITED 4,213.85 DR 2,185,161. 30 2,182,663.40 621,193.33 CR
CA 01-000461 \.;'FONES DIRECT LIMITED /" 30,001,713 .18 CR 15,040,192.62 2,497.90 DR 2,240.97 CR
13,695,586.69 1,344,605.93 DR
CA 01-000464 BHAVIK CHANDRAKANT DODHIA yr 8,493.64 CR 409,918,850.17 365,179,112.79 1,348,819.78 DR
\ \ ~.CA 01-000465Utl- COMMUNICATION CARRIER LTD 5,274.42 CR 14,759,305.50 44,739,737.38 DR 14,738,024.20 DR
14,854,229.65 94,924.15 CR
~CA 01-000471 NINENINE LTD 850,142.63 CR 2,498,255.77 2,492,981. 35 103,417.79 CR
CA 01-000501 WILLIAM K. WOOD / 325.64 DR 4,730,265.98 5,274.42 DR 0.00
'3,889,143.53 841,122.45 DR
CA 01-000502 FRANCIS P. WAMBUA ~? 1,000.00 DR 2,480,000.00 2,487,300.00 9,020.18 CR
CA 01-000504 HARRISON NJERU MUTHURI ??' 34.68 CR 3,108,189.40 3,109,733.15
7,300.00
1,543.75
CR
CR
6,974.36 CR
CA 01-000507 MORNING DEW 815.43 DR 52,932,230.80 46,952,916.20 543.75 CR
CA 01-000509 0'HONE LINK (K) LTD - 7 't,-.I> (····"f' .• N~ 17,092.03 DR 527,778.50 533,885.78
5,979, 314.60
6,107.28
DR
CR
5,979,279.92 DR
CA 01-0005'10 AUM APPARELS LTD 501,059.89 CR 502,865,015.34 484,955,008.80 5,291.85 CR
CA 01-000511 I AIRLINE SUPPLIES INTERNATIONAL ··,NC-' "" \(~":n2,881.88 CR 20,854,789.92 17,910,006.54 DR 17,927,098.57 DR
1,207,030.95 19,647,758.97 DR
CA 01-000515 '-""""HONES DIRECT LTD '71'1 9,933.34 CR 0.00 100,000.00 19,146,699.08 DR
CA 01-000518 PANORAHA IMPORTS 0.00 306,378,842.22 100,000.00 CR 102,881.88 CR
293,021,391.83 13,357,450.39 DR
~CA 01-000519t\~. GENCO LIMITED 2,381.07 CR 23,000,000.00 13,347,517.05 DR
.....-- CA 01-000542 KENYA CATERMART LTD 0.00 22,990,567.10 9,432.90, DR
1,524,841.00 1,611,000.00 9,432.90 DR
CA 01-000543 KACHRA JIVRAJ (K) LTD 19,200.50 DR 4,582,127.65 86,159.00' CR 88,540.07 CR
4,583,875.00 1,747.35 CR
CA 01-000545~~ RO GAl COM LTD 0.01 CR 35,920,701.15 1,747.35 CR
35,832,654.80 88,046.35 DR
CA 01-000546 FRESH AN JUICI LTD ,1,465.71 DR 16,326,612.21 16,810,778.85 107,246.85 DR
CA 01-0005471"[' SHIVAM ENTERPRISES LIMITED .;:. 0.00 123,925,816.14 484,166.64 CR 484,166.65 CR
116,457,250.44 7,468,565.70 DR
CA 01-000548 AHMED ABDULLAHI ALI ~'tct(l •.j)ll\o,) C'i.-l! ~I-"':',. 30,000.00 DR 16,862,435.35 16,869,000.00 7,470,031.41 DR
CA 01-000549 ROPSONS GENERAL STORES LTD 973.15 DR 173,980,893.30 6,564.65 CR 6,564.65 CR
174,229,716.25 248,822.95 CR
.. -o-, CA 01-000550 ~\tI MANJULA N. SHAH 253,435.30 DR 404,400.00 ,., 409,252.80 218,822.95 CR
.;., CA 01-000551 to,> TEXOIL (K) LTD 1,332.52 CR 20,001,000.00 20,507,870.60
4,852.80 CR 3,879.65 CR
. CA 01-000552 v HOME EXPRESS 502.57 DR 8,162,453.52 8,161,121.00
506,870.60 CR 253,435.30 CR
1,332.52 DR

J
CA 01-000553/'/ IMAGE MOTORS (K) LTD 9,137,824.44 CR 4,427,635.60 4,670,165.00 0.00
CA 01-000554 MINESH M. SHAH 13.15 CR 61,433,427.43 242,529.40 CR 242,026.83 CR
30,119,943.62 31,313,483.81 DR
CA 01-000555 ~ GUACA STATIONERS LTD 7,689.20 DR 70,940.00 5,000.00 22,175,659.37 DR
CA 01-000556~/~ NZIOKA GEMSTONES INTERNATIONAL 0.00 16,241,997.70 65,940.00 DR 65,926.85 DR
16,207,276.85 34,720.85 DR
CA 01-000557 IJ/' MAXAM ENTERPRISES LIMITED 835.89 CR 0.00 0.00 42,410.05 DR
CA 01-000558 OSMAN YUSSUF MOHAMED 2,500.00 DR 229,921.40 0.00 0.00
247,782.85 17,861. 45 CR
CA 01-000559,./ TINTORIA LIMITED 2,000,177.96 CR 16,634,500.00' 32,286,997.00 18,697.34 CR
\ q CA 01-000560 tJtfl. KINGSWAY TYRES LTD-vill age mark 500.00 DR 4,964,250.42 15,652,497.00 CR 15,649,997.00 CR
2,983,895.08 I, 980, 355 . 34 DR
CA 01-000561 v KENINVEST HOLDINGS LIMITED 8,407.25 CR 3,585,824.80 4,002,650.80 416,826.00 CR
19,822.62 CR
CA 01-000562,./ AFRICAN CENTRE FOR CLINICAL TRI ./ 1,350,428.33 CR 13,082,282.94 13,858,149.85 416,326.00 CR
; CA 01-000563t!l\ KARIUKI MUIGUA & CO.CLIENTS A/C V 89,464.99 DR 805,694.05 775,866.91 CR 784,274.16 CR
! .rCA 01-0005641
'·.CA 01-000565./
KINGSWAY MART LTD
TEXOIL (K) L-'-f)
i/ 8,682,347.21
8,035.92
CR
DR
327,666,534.92
544,08'2,413.81
'* 10,000.00
32~,854,507.08
507,462,224.48
795,694.05
1,187,972
36,620,189.33
.16 CR
DR

DR
554,734.28
1,098,507.17
CR
CR
35,462,940.40 . ~ , 277 , 648 . 72 27,937,842.12 DR
185,291. 68 DR 193,327.60 DR
 Charterhoust Bank Limited
PWA-79 Account Turnover
Report Da. 03/08104 Page:
Charterhouse Bank Limlted Run Date: 03/08/2004 12:55:00 PM 10
From 01/01/98 to 03/08/04
-----------------------------------------------------------------------------------------------------------------------------------------
Account Account Openi "9 Balance Debi t credi t Turnover Closi n9
Number Description Amount Amount Balance

~~-gf:gggi~~~-i~~~~~~~~~~~~~~~~~~:~;~;~-------------~~
CA 01-000568 ~ VILESWGOVINDJI o.oo SHAH
~:f:~g-~~-----;;~:fi:~~~:~~---0.00 10,000.00 10,000.00 CR 10,000.00 CR
CA 01-000569;./ NIRAV PRABHULAL SHAH 0.00 5,877, 7BO.00 4,920,000.00 957,780.00 OR 957 ,7BO. 00 DR
CA 5
01-000570./ NAOMI CIDI KOMBATHA 0.00 0.00 20,000.00 20,000.00 CR 20,000.00 CR
CA 01- 000 5 71 CIDI INTE RNATIDNAL 134.44 CR 10,008 . 12 20,000.00 9, 991. B 8 CR 10, 126. 32 CR
CA 01- 000 72'-- HUNKAR TRADING CO LTO 0.00 240, 000.00 20, 000. 00 "0, 000. 00 DR "0, 000.00 DR
CA 01-000573 Jl' PRISKO SPECIAL SERVICES 500.00 OR 1, B15, 343.60 1,815,643.60 300.00 CR 200.00 DR
CA
-.Q. 901 -
1
01-000575 v:::
ggil;~..r- DALBIT PETROLEUM LTD
On
CR-E.l>S"!J:r...c9_~IR~1.~0~_<;Q •.._LT
BO, 034.05
0,00
DR .329,051,223.26
165 , 289, 550.00
, 332, 778,665.05
. 165, 33B , 850.00
3,727,441. 79 CR
49, 300.00 CR'
3,647,407.74
49, 300.00
CR
CR
CA - U"', HEGROUP I NVESTMENTS LIMITED 91. 05 CR 9, B6 7. 00 20,000.00 10 , 13 3.00 CR 10, 22 4.05 CR
CA 01-000578 ~ IMAGE MOTORS (K) LTO - DEPOSIT 969.30 CR 16,750,335.95 16,790, 5B3. 00 40,247.05 CR 41,216.35 CR
CA 01-000579 v AIR SOLUTIONS LTO 0.00 0.00 0.00 0.00 0.00
' '0 ">«:A 01-000580./ STAR ELECTRONICS LTO 3,388,329.17 CR 12,372,117.24 9,490,327.40 2,881, 7B9.B4 DR 506,539.33
" " ...-"CA 01-000601 v' NYORO CONSTRUCTIDN CO, LTO 0.00 0.00 15,000.00 1S,000.00 CR 15,000.00
CR
CA 01-000602.c; PATRI CK NJI RU 0.00 123, 000.00 195 ,000. 00 72 , 000.00 CR 72, 000.00
CR
CA 01- 00060 3~ EDWARDMICHAEL SMITH 0.00 24 5 , 000.00 365 ,000.00 120, 000. 00 CR 120,000. 00
CR
CA 01-000604': HANS APPAREL LTO 8,199.02 DR 6,589, OS9.60 4,229,818.92 2,359,240.68 DR 2,367,439.70 CR
CA 01-000605 ZING ENGINEERING WORKS 0.00 1,440,974.00 1,658,451.00 217,477.00 CR 217,477.00
DR
CA 01- 000606,"" ZAHIR A HASSANALI 154.46 CR 1, 88 3 ,767.46 159,813. 00 " 723 , 954. 46 DR " 72 3, 800.00 CR
CA 01- 00060 7:/ PETROLUBE ENTERPRIS ES LTO 2, 362, 121. 46 CR 745 , 215 .00 430,000.00 315, 215 .00 DR 2, 046, 906 .46
1 DR
CA 01-000608./ MITSUMINET (K) LTO iI.oo 25,000.00 30,000.00 5,000.00 CR 5,000.00
CR
CA 0 000609 BOOKS FI RST LIMITED 262. 75 DR 412 , 600.00 469, 295.00 56, 695 .00 CR 56,492 . 25 CR
CA 01- 000610'/ LIONS CLUB OF ETHIOPIA 0.00 703. 00 3. 00 700. 00 DR 700.00
CA 01-000611 v:::. NEWLIGHT SCHOOLS LIMITED/ 0.00 0.00 47,200.00 47,200.00 CR 47,200.00 CR
DR
CA 01-000612 ~ DANIEL KEIGI GACHUE 0.00 83B,700.00 1,146,298.00 307,598.00 CR 307,598.00
CR
CA 01- 000613 V/ BRAND IMPORTS LIMITED 0.00 5, 707, 648 . 5\ 5, 810, 32S. 20 102 , 676. 65 CR 102,676 . 6S
CR
CA 01-000614 V'/ RATILAL K. SHAH 0.00 0.00 117,605.00 117,605.00 CR 117,605.00 CR r
CA 01-000616 V PRIME EQUIPMENT (EA) LTO 0.00 0.00 30,000.00 30,000.00 CR 30,000.00
CR
CA 01 000617 v' DAVID M. KANYINGI ~ 3,303.35 DR 2,061,317.00 2,323,159.55 261,842.5\ CR 258,539.20 CR
CA 01 000618~ BRAND DISTRIBUTOR (KENYA) LTO 0.00 1,400.00 10,000.00 8,600.00 CR 8,600.00
CR
CA 01- 000619,/ RAKESH SHARMA 200,000.00 CR 310, 000.00 11, 278.00 298 ,7 22 . 00 DR 98, 722 . 00
CR
CA 01- 000620 DAVID ARADI AKOTO 0.00 185,000.00 200,000.00 15, 000.00 CR 15 ,000.00 DR
CA 01-000621 -. LASHAM LTD 0.00 100,000.00 153,208.00 53 ,208.00 CR 53,208. 00 CR
CA 01-000622 / SIAMANDA DUTY FREE LIMITED O. 00 210,600.00 220, 300. 00 9, 700.00 CR 9,700 . 00
CR
CA 01-000623/ DIGITAL WORLD LIMITED 0.00 69,000.00 711,356.20 642,356.20 CR 642,356.20
CR
CA 01-000 62 4/ PARKER RADID HOUSE LTD 12.22 CR 0.00 50,000.00 50,000.00 CR 50,012 . 22
CR
CA 01-000625/ ) ANAT MUKHT AR AHMED 0.00 0,00 50, 000.00 SO, 000.00 CR 50, 000 . 00
CR
---+--CA
CA 01-000626/
01-205916
HOTEL SIRIKWA LTD
DILPUN SHAH
0.00
0.00
~ 40,000,440.00
• 0.00
p<. 52 ,608,685.00
.,. 0.00
12,608,245.00
0.00
CR 12,608,245.00
0.00 CR
CR
CA 01- 300001 AN)UM CHAUDRY 0.00 42,383.21 42,383.21 0.00 0.00
CA 01-300002 YUVRA) UDAY SOMCHANDSHAH 0.00 1,102.44 1,102.44 0.00 0.00
CA 01- 300003 SAF1A CHAUDRY 0.00 81,094.38 81,094.38 0.00 0.00
CA 01-300004 MRS YOGINI 0.00 21,457.95 21,457.95 0.00 0.00
CA 01-300005 1 MRS YOGINI 0.00 6,038.15 . 6,038.15 0.00 0.00
'LA 01- 60000 NEWCALTECHNOLOGIES O. 00 60, "2. 22 60, 232 . 22 0.00 0 . 00
CA 01-600002,/ DAVID SUNSTRUM 0.00 4,000.00 4,000.00 0.00 0.00
CA 01-600003 S.A. PEGRUME & CO. LTO 322.13 CR 912.26 1,442.31 530.05 CR 852 .18 CR
CA 01- 600004 5 AFRlCON SALES LTO 0.00 261.15 79 5.92 534. 77 CR 534 . 77 CR
CA 01- 60000 MARERO PHARMAC EUTICAI,:; LTD 7. 00 DR 8, 586.85 9, 229. 73 642 . 88 CR 63 5 . B8 CR
CA 01-600006 7
CA 01- 60000
PAOLO SATTANINO v
INTfRN ET TRADE SERVICES LTO
250,124.20
O. 00
CR 310,904.09
60.13
95,707.83
60. nO.
215,196.26
00
OR 34,927.94
0 . 00
CR
 charterhouse Bank Limited
Report oa. 03tr.~/04 Page: 11
PWA-79 Account Turnover Run Date:
Charterhouse Bank Limited 03/08/2004 12: 55:00 PM
From 01/01/98 to 03/08/04
--------------------------------------------------------------------------------------------------------------------------------------
Account Account Opening Balance
Number Description Debit Credit Turnover Closing
Amount Amount
------------------------------------------------------------------------------------------------------------------------------------- Balance
CA 01 600008 KINGSWAY TYRE & AUTOMART LTD 0.00
CA 01-600009./ COMMUNICATION CARRIER LTO Acl 33,895.08 33,895.08 0.00
20.00 DR 0.00
CA 01-600012 MANOJ R. SHAH LIO~S A/C 2,290.96 2,371.92 80.96 CR
112,710.07 CR 60.96 CR
.LA 01-600013,;' MEHRAZ EHSANI ~ 176,461. 53" 173,983.43 2,478.10 DR
179,230.86 CR 110,231.97 CR
CA 01-600016 MAGIC KINGDOM 432,921. 42 436,622.41 3,700.99 CR
0.00 182,931. 85 CR
CA 01-600019 COMPULYNX LTD 315.00 630.00 315.00 CR
13,172.00 CR 315.00 CR
26,518.37 17,244.83
CA 01-600020 DR. K. S. & MRS. MANJIT GIDDIE 0.00
9,273.54 DR 3,898.46 CR
CA 01-600021./ MARA TRADING LIMITED ./" 5,486.03 10,972.06 5,486.03 CR
0.00 5,486.03 CR
CA 01-600024 HAMED & MEHRAZ EHSANI~ 4,393.33 5,386.67 993.34 CR
0.00 993.34 CR
CA 01-600025~ CEMPACK LTD 118.00 236.00 118.00 CR
70,152.30 CR 118.00 CR
CA 01-600026VKINGSWAY MOTORS (K) LTD 70,495.00 7,476.60 63,018.40 DR
2,190.26 CR 7,133.90 CR
CA 01-600032 PEGRUME LIMITED 3,875.52 2,514.97 1,360.55 DR
416,863.85 CR 829.71 CR
654,065.56 245,564.04 408,501.52 DR
CA 01-600035 COMMUNICATION CARRIER LTD Ac2 312,841. 41 CR 8,362.33 CR
320,931. 22 11,917.60
CA 01-600036 PETROLEUM & IND. SERVICES LTD. 0.00
309,013.62 DR 3,827.79 CR
CA 01-600037 KINGSWAY INVESTMENTS 490.41 980.82 490.41 CR
0.00 490.41 CR
CA 01-600040./ VASANT N GAROOD 309.00 618.00 309.00 CR
0.00 309.00 CR
CA 01-600041./ PATEL P SAGARBHAI 965.48 1,930.96 965.48 CR
36,316.38 CR 965.48 CR
CA 01-600043 NISHIT K PATEL 48,864.30 12,572 .00 36,292. 30 DR
0.00 24.08 CR
CA 01-600048 v' RAJIV KHANNA '22,986.09 92,891.18 69,905.09 CR
46,874.86 CR 69,905.09 CR
CA 01-600050./ V AND A SHAH ~I.f\ 46,835.66 2,769.00 44,066.66 DR .2,808.20 CR
122.06 CR 164,316.77 240,072.25
CA 01-600053 ASPEN HILL LIMITED 75,755.48 CR 75,877.54 CR
0.00 165.00 330.00
CA 01-600056/ NATIONAL SP. ASSE. OF THE BAHAI 165.00 CR 165.00 CR
0.00 434.75 18,590.00
CA 01-600057 DOREEN NAMULANDA V~ER 18,155.25 CR 18,155.25 CR
0.00
CA 01-600061,;" MEHRAZ EHSANI v' 91. 30 CR
36.50
88,631.69
36.50 0.00 0.00
CA 01-600067 (CRUCIAL PROPERTIES LTD ACI 149,636.80 61,005.11 CR 61,096.41 CR
0.00 158,128.63 316,257.26
CA 01-600070 I~~RUCIAL PROPERTIES LTO(USD) A/C 158,128.63 CR 158,128.63 CR
0.00 46,849.08 93,698.16
CA 01-600071 . MARKFIRST (KENYA) LTD 46,849.08 CR 46,849.08 CR
8,695.16 DR 6,768.87 15,464.03
CA 01 600072vf\~MRS SAFIA CHAUNDRY & MR NOORDIN 3,999.59 DR
8,695.16 CR 0.00
1,526.76 5,796.22 4,269.46 CR 269.87 CR
CA 01-600078/ Hamed Ehsani URI Account 0.00
CA 01-600084~ WINES OF THE WORLD LTD 19,972.00 21,136.00 1,164.00 CR 1,164.00 CR
0.00 2,995.00 3,444.50
CA 01-600085 ALLOY STEEL & CASTINGS LTD 266,305.41 CR
449.50 CR 449.50 CR
263,662.93 14,089.46 . 249,573.47 DR 16 , 731 . 94 CR
(A 01 600088 WALLANCE HOLDINGS LTD ~ 0.00
- CA 01-600090 WELLEN INTERNATIONAL LIMITED ;~\ l 3,834.83 3,834.83 0.00 0.00
0.00 "'-.4,711.57 4,711. 57
CA 01-600092 TRITON PETROLEUM CO. LTD 0.00 0.00
1,394,607.14 CR 2,629,154.64 1,234,547.50
01-600093/ CAPRICORN S.R.L - ~--- 1,394,607.14 DR 0.00
69,377.07 CR 157,234.14 87,857.07
CA 01-600094./' SAILESH & MEHUL SAVANI 69,377.07 DR 0.00
4,500.00 CR 12,386.37 9,965.27 2,421.10 DR
CA 01-600098 CAPRICORN S.R.L - _ 2,078.90 CR
CA 01-600099 DALBIT INVESTMENTS LTD "'~ 0.00 0.00 0.00 0.00 0.00
CA 01-600101 JASPAL SAGOO
(J!', 030,988.81 CR .9,800,167.83 813,322.66 8,986,845.17 DR 44,143.64 CR
; 0.00 383,965.00 383,965.00
CA 01-600102/ William .T. carlin, wtcarlin@ya 0.00 0.00
0.00 839.00 11,563.00 10,724.00 CR
CA 01-600106 THEMIS INVESTMENTS LTD 10,724.00 CR
0.00 33,651.10 33,651.10
CA 01-600108 ANJUM CHAUDRY 0.00 0.00
27.00 DR 7,209.39 7,274.00 64.61 CR
CA 01-600109 NEPTUNE SOFTWARE LIMITED 37.61 CR
236.50 CR 66,411.00 66,210.16 200.84 DR
CA 01-600110'/ MEDIKEM INTERNATIONAL LTD 35.66 CR
7.00 DR 35,340.45 35,380.95 40.50 CR
CA 01-600111 MAHESH SHASTRI 33.50 CR
0.00 20.00 20.00 0.00
CA 01-600112 ZEPHYR (D. F) LTD. 0.00
6,310.00 CR 9,047.00 31,565.00 22,518.00 CR
CA 01-600115 YOUNG EXECUTIVES LIMITED 28,828.00 CR
0.00 0.00 0.00 0.00
CA 01-600116 ADIL LAKHANI & MINAZ JAVER LAKH 0.00
0.00
20,000.00 20,000.00 0.00
CA 01-600117 ADIL LAKHANI & MINAZ JAVER LAKH 0.00 20,000.00
0.00
CA 01-600118 ADIL LAKHANI & MINAZ JAVER LAKH 20,000.00 0.00 0.00
0.00 6,493.78 6,493.78 0.00
CA 01-600119 EAST AFRICAN SAFARI AIR 0.00
0.00 165,156.30 165,156.30 0.00
CA 01-60012J / VIJAYKANT V RANIGA 0.00
0.00 15,000.27 24,000.54 9,000.27 CR 9,000.27 CR
 CharterhOlJse Bank Limited
PWA-79 Account Turnover Report Oil 03/08/04 Page:
Charterhouse Bank Limited Run Date: 03/08/2004 12:55:00 PM 12
Account From 01/01/98 to 03/08/04
Account
----------------------------------------------------------------------------------------------------------------------------------------
Number Desc ript i on Opening Balance Debit Credit
Amount Turnover Closing
CA 01 600122 Amount
---------------------------------------_._-------------------------------------------------------------------------------------------
CA 01-600123 MARKET MASTERS LTD 4,240.00 CR Balance
CA 01-600124 KUKI INVESTMENTS 0.00 8,496.80 4,256.80 4,240.00 DR
CA 01- 60012 5 ./ MEKATECH SERVICES & SUPPLIES LT 0.00 0.00 0.00 0.00
NILE CONSOLIDATED HOLDINGS LTD 185,023.80 CR 0.05 0.00 0.00
CA 01-600126 0.00
~LITY -TR4QJl!0.... COM~Y LTD 2, 929.45 CR 304,201.35 0.00 0.00
CA 01-600127 139,604.35
AUTO IMPORT LTD - 0.00 81,166.49 164,597.00 DR 20,426.80 CR
CA 01-600128 79,369.65 1,796.84 DR
CA 01-600129 JAKHARIA PACKERS 29,735.00 CR 8,023.08 8,023.08 1,132.61 CR
HIDDEN TREASURES BOOK - AC 1 6,405.90 CR 29,735.00 0.00 0.00
CA 01-600130 0.00 29,735.00 DR
CA 01-600132 v' JAMIL ASAD ANWAR 0.00 19,139.88 16,159.93 0.00
DE LA MARTIN SERNA 40.00 DR 0.00 2,979.95 DR 3,425.95 CR
CA 01-600137 0.00
CA 01-600138./ NEPTUNE SOFTWARE LIMITED 31,748.00 CR 22,460.38 0.00 0.00
22,500.00
INTERNATIONAL COMMERCIAL CO. (K 11,302.35 CR 34,073.00 39.62 CR
CA 01-600142 2,416.40 0.38 DR
31,656.60 DR
CA 01-600144 .> KENYA CATERMART LTD 0.00 11,259.50 3,908.62 91.40 CR
INTEGRATED TELECOM LIMITED 0.00 0.00 7,350.88 DR 3,951.47 CR
CA 01-600147! 7,226.94
---g.CA 01-600151 SIMBANET COM LTD
KUSTRON KENYA LIMITED
,21,162.00
~~~-------·--·I< _ 85,103.98
CR
CR 19,400.25
0.00 116.91
7,226.94
116.91
CR
CR
7,226.94 CR
CA 01-600152 v 1,427.00 17,973.25 DR
116.91 CR
CA 01-600153! EAST AFRICAN FOUNDRY WORKS (K) L lOS', 345 :50 CR 4.00 ' 5,239.00 3,188.75 CR ,
5,235.00 CR
CA 01-600155 ! ANTHONY J. RODRIGUES 2,384.80 CR 100,188:00
455.83 99,732.17 DR
90,338.98 CR .J'1j,)
CA 01-600157 SIMBA TECHNOLOGY LTD 27,613.00 CR 2.00 1,750.00 5,613.33 CR
AFRICA SPIRIT LIMITED 67,906.00 CR 24,080.00 1,748.00 CR
CA 01-600158 . 1,791. 00 4,132.80 CR
JITENDRA SHAH & MRS SURBHI SHAH 0.00 143,167.40 22,289.00 DR 5,324.00 CR
CA 01· 600159 83,096.00 60,071. 40 DR
CA 01-600160 MR AMAR SHAH 0.00 0.00 20,000.00 7,834.60 CR
MRS. SURABHI SHAH 0.00 0.00 20,000.00 CR 20,000.00 CR
CA 01-600161 20,000.00
MR. A ..J SHAH 0.00 0.00 20,000.00 CR 20,000.00 CR
CA 01-600162 20,000.00 20,000.00 CR
CA 01-600163 MRS. S.J SHAH 0.00 0.00 20,000.00 20,000.00 CR
AFRICAN CENTRE FOR CLINICAL TRI 144,347.66 CR 20,000.00 20,000.00 CR 20,000.00 CR
CA 01-600165 20,000.00 0.00
CA 01-600168 _ MRS. S.J SHAH V~ 0.00 66,976.50 13,786.00 0.00
53,190.50 DR
CA 01-600169'-- NAINA M.SHAH &_MANISH R. SHAH, 1,547.00 CR 0.00 20,000.00 20,000.00 CR
91,157.16 CR
CA 01-600173 HANIF AYOOB SULEIMAN 1,940.00 CR 1,330.00 0.00 20,000.00 CR
LIONS CLUB OF ETHIOPIA 37,875.00 CR 7.00 1,330.00 DR 217.00 CR
CA 01 600176"- 0.00
CA 01-600177 LORETTA WAVINYA NZONGI 0.00 7.00 7.00 DR 1,933.00 CR
0.00 7.00 DR
CA 01-611001 AZHAR CHAUDRY 10,000.00 CR' . 0.00 3,000.00 37,868.00 CR
Akiba Bank 250,000.00 CR 10,000.00 3,000.00 CR 3,000. 00 CR
CA 01 611002 0.00 10,000.00 DR
CA 01 611003 Co-operative Bank of Kenya Ltd <"-:.I·· .• ,;'Jo 1,200,000.00 CR 250,000.00
0.00 0.00
Ameri can Express Bank Ltd Frank < .- 50,441. 97 CR 1,200,000.00 250,000.00 DR 0.00
CA 01-611004 0.00 1,200,000. 00 DR
CA 01-700027 Fina Bank ..
~ . .;: 250,000.00 CR__ 50,441.97 0.00
0.00 50,441.97 DR
CA 01-700038 NAKUMATT INVESTMENTS LTD 0.00 250,000.00 0.00
0.00 250,000.00 DR
---~ - CA 01-700044 KINGSWAY TYRE & AUTOMART LTD 0.00 1,231. 57
2,463.14 0.00
10,159.86 1,231.57 CR
CA 01-700054 V AND A SHAH 2,417.47 CR 17,397.95 1,231. 57 CR
ASPEN HILL LIMITED 0.00 303,187.39 7,238. 09 CR 7,238. 09 CR
CA 01-700058 717,974.87 414,787.48 CR
CA 01-700105 BHARATKUMAR A PATEL 0.00 100.00 417,204.95 CR
200.00 100.00 CR
CA 01-700107 CHANDRAKANT PETHRAJ SHAH/JYOTIK 109.31 CR 7,348.90 7,697.80 100.00 CR
ALLOY STEEL & CASTINGS LTD 0.00 0.00 348.90 CR 348.90 CR
CA 01-700128 22,920.22 22,920.22 CR
CA 01-700141 CHANDRAKANT PETHRAJ SHAH/JYOTIK 0.00 0.00 0.00 23,029.53 CR
THEMIS INVESTMENTS ~TD 10,000.00 CR 22,359.06 0.00 0.00
CA 01-700154 22,359.06 0.00
CA 01-700167 PAOLO SATTANINO ~ 4,552.40 CR 11,656.40. 25,000.00 0.00
HEGROUP INVESTMENTS LIMITED 4,905.00 CR 1,718.00 13,343.60 CR 23,343.60 CR
CA 01-700170- 166.00 1,552.00 DR
CA 01-700171.-" A.K PATEL MR 30,000.00 CR 4,905.00 0.00 3,000.40 CR
FARID RAJABALI HAMIR 0.00 5.00 4,905.00 DR 0.00
I CA 01-710000 0.00 5.00 DR
CA 01-711001
i .--.... Canara Bank London Ltd 0.00 6,070.00 7,000.00 29,995. 00 CR
co-operative Bank of Kenya Ltd 649,673.03 CR 0.00 930.00 CR 930. 00 CR
.~ GA 01· 800089 0.00 0.00
ALLOY STEEL & CASTINGS LTD I 19,875.00 CR 649,673.03 0.00 0.00
20,123.70 649,673.03 DR 0.00
291.98 19,831.72 DR 43.28 CR
 C~3rterhouse Bank Limited Report oa. 03/08/04 page: 13
PWA-79 Account Turnover Run Date: 03/08/2004 12: 55:01 PM
charterhouse Bank Limited From 01/01/98
to 03/08/04
- ----------------------------------------------------------------------------------------.-------------------------------------------------
Account Account opening Balance Debit credit Turnover closing
Number Description Amount Amount Balance
------------------------------------------------------------------------------------------------------------------------------------
CA 01-800098 CAPRICORN S.R.L 0.00 79,421. 36 79,421. 36 0.00 0.00
CA 01-800113 THEMIS INVESTMENT~ LTD 1,447.80 CR 5,126.62 140,377.38 135,250.76 CR 136,698.56 CR
CA 01-800145 PAOLO SATTANINO tI 198,556.52 CR 280,758.50. 126,667.15 154,091.35 DR 44,465.17 CR
A 01-811001 Co-operative Bank of Kenya Ltd 40,037.33 CR 40,037.33 0.00 40,037.33 DR 0.00
CA 01-811002 Akiba Bank 100,000.00 CR 100,000.00 0.00 100,000.00 DR 0.00
~ A 01-900001 JITENDRA SHAH & MRS SURBHI SHAH 124,800.00 CR 0.00 0.00 0.00 124,800.00 CR
CD 00-201452 MARKET MASTERS LTD 0.00 350,000.00 350,000.00 0.00 0.00
CD 00-202533 VEELESH P GOHIL 3,471.20 CR 260,471.20 257,000.00 3,471.20 DR 0.00
CD 01-000051 S.M.J. LAKHANI 0.00 0.00 0.00 0.00 0.00
CD 01-000052 LUCY W MWANGI 0.00 0.00 0.00 0.00 0.00
CD 01-200001 K. N. PATEL & OTHERS 232,205.27 CR 7,799,609.17 7,567,403.90 232,205.27 DR 0.00
CD 01-200002 DEKA INDUSTRIES 219,604.53 CR 2,499,604.53 2,280,000.00 219,604.53 DR 0.00
CD 01-200003 R.Z. HARIA 104,178.02 CR 1,153,000.00 1,048,821.98 104,178.02 DR 0.00
CD 01-200004 HIRJI SEYANI 347,116.46 CR 8,131,910.83 7,784,794.37 347,116.46 DR 0.00
CD 01-200005 R.Z. HARIA 134,075.33 CR 1,729,500.05 1,595,424.72 134,075.33 DR 0.00
CD 01-200006 VIPUL HARIA & AARTI HARIA 819.86 CR 150,819.86 150,000.00 819.86 DR 0.00
CD 01-200007 RATANBHAI L SHAH 20,590.35 CR 314,525.85 293,935.50 20,590.35 DR 0.00
CD 01-200008 S.M.J. LAKHANI 144,657.53 CR 5,644,657.53 5,500,000.00 144,657.53 DR 0.00
CD 01-200009 MOHAMED HASHAM 19,491. 77 CR 519,491.77 500,000.00 19,491. 77 DR 0.00
CD 01200010 RAKSHA VEKARIA,SHAMJI,JEHSANI,V 46,109.58 CR 2,046,109.58 2,000,000.00 46,109.58 DR 0.00
CD 01-200011 MRUDULA S SHAH 41,556.53 CR 636,581.95 595,025.42 41,556.53 DR 0.00
CD 01-200012 POMESH B SHAH 8,152.62 CR 272,295.76 264,143.14 8,152.62 DR 0.00
CD 01-200013 G.D. PATEL 323,214.86 CR 6,981,390.34 6,658,175.48 323,214.86 DR 0.00
CD 01-200014 SWETA A. ,RAISHI M. & RASILA U, 10,694.62 CR 687,168.60 676,473.98 10,694.62 DR 0.00
CD 01-200015 SWETA A. ,RAISHI M. & RASILA U, 25,748.14 CR 1,654,412.20 1,628,664.06 25,748.14 DR 0.00
CD 01-200016 SWETA A. ,RAISHI M. & RASILA U, 25,449.98 CR 1,635,255.20 1,609,805.22 25,449.98 DR 0.00
CD 01-200017 SWETA A.,RAISHI M. & RASILA U, 9,921.65 CR 637,502.66 627,561. 01 9,921.65 DR 0.00
CD 01-200018 SWETA A. ,RAISHI M. & RASILA U, 12,591. 40 CR 809,043.95 796,452.55 12 , 591. 40 DR 0.00
CD 01-200019 SWETA A.,RAISHI M. & RASILA U, 50,268.01 CR 3,229,903.56 3,179,635.55 50,268.01 DR 0.00
CD 01-200020 J .S. BADIANI '-- - 174,799.10 CR 1,909,241. 40 1,734,442.30 174,799.10 DR 0.00
CD 01 200021 \'--SANJAY R SHAH 269,585.38 COR 2,944,543.65 2,674,958.27 269,585.38 DR 0.00
CD 01-200022 , 'SANJAY R SHAH 359,699.23 CR 3,928,810.05 3,569,110.82 359,699.23 DR 0.00
CD 01-200023 ,--SANJAY R SHAH 570,089.34 CR 6,226,793.85 5,656,704.51 570,089.34 DR 0.00
CD 01-200024 SKYPLAST MANUFACTURERS LTD. 45,840.83 CR 828,458.85 782,618.02 45,840.83 DR 0.00
CD 01-200025 AFRICALAND COMPUTERS (K) LTD 332,821. 68 CR 5,537,222.60 5,204,400.92 332,821.68 DR 0.00
CD 01-200026 NISHIT & CO. LTD 33 ,988 . 79 CR 560,163.39 526,174.60 33 , 988 . 79 DR 0.00
CD 01-200028 SUBHASH CHANDRA M GUDKA 18,343.22 CR 244,779.30 226,436.08 18,343.22 DR 0.00
CD 01-200030 SOBHAGCHAND R SHAH 9,309.85 CR 115,562.65 106,252.80 9,309.85 DR 0.00
CD 01-200031 CHUNILAL K SHAH 9,309.85 CR 115,562.65 106,252.80 9,309.85 DR 0.00
CD 01-200032 KINGSWAY TYRE & AUTOMART LTD 638.33 CR 177,147.53 176,509.20 638.33 DR 0.00
CD 01-200033 .-,SANJAY R SHAH 134,249.80 CR 2,793,407.06 2,659,157.26 134,249.80 DR 0.00
CD 01-200034 ( SHANTILAL DEVCHAND & SATISHCHAN 1,998.97 CR 610,019.17 608,020.20 1,998.97 DR 0.00
CD 01-200035 LEAFSPRING MANUFACTURERS LTD 15,353.46 CR 242,836.80 227,483.34 15,353.46 DR 0.00
CD 01-200036 RAMESHCHANDRA KHOLI 56,867.48 CR 2,193,336.32 2,136,468.84 56,867.48 DR 0.00
~ CD 01-200037 KAMAL R SHAH 58,856.85 CR 2,176,226.65 2,117,369.80 58,856.85 DR 0.00
CD 01-200038 VIJAY K SHAH 1,352,452.06 CR iz. 147,059.00 10,794,606.94 1,352,452.06 DR 0.00
CD 01-200039 NISHIT C. SHAH & MRS DIPSHIKA S 679,721. 82 CR 6,997,460.35 6,317,738.53 679,721.82 DR 0.00
CD 01-200040 .-5ANJAY R SHAH 134,249.80 CR 2,793,407.05 2,659,157.25 134,249.80 DR 0.00
. -- CD 01-200041 KAMAL R SHAH 1,352,452.06 CR 12,147,059.60 10,794,607.54 1,352,452.06 DR 0.00
CD 01-200042 MAYUR KUMAR RAOJIBHAI PATEL 58,856.85 CR 2,176,226.65 2,117,369.80 58,856.85 DR 0.00
CD 01-200043 .-~ SAN JAY R SHAH 202,448.88 CR 4,212,459.60 4,010,010.72 202,448.88 DR 0.00
CD 01-200044 . 'SANJAY R SHAH 202,448.88 CR 4,2V,459.60 . 010,010.72 202,448.88 flR 0.00
Report to the Statutory Manager,
Charterhouse Bank Limited “Under
Statutory Management”

PRICE WATERHOUSE COOPER

1
 TABLE OF CONTENTS

Page

1 Executive summary 1
1.1 Introduction 1
1.2 Information flow and availability 1
1.3 Key findings 3
2 Know your customer “KYC” procedures 9
3 Compliance with laws and regulations 11
3.1 Requirements of the Banking laws and regulations 11
3.2 Returns to CBK 11
3.3 Splitting of foreign currency transactions 12
3.4 Insider lending 13
We have included Appendix L showing the Insider lending disclosed to
CBK as at 31 March 2006. Securities for insider lending 14
Securities for insider lending 15
4 Transactions with related parties 16
4.1 Deposits by the directors of the bank and their families 16
4.1.1 Accounts operated by the Kingsway group 16
4.1.2 Nakumatt Holdings Limited - CA 01-000085 18
4.1.3 Greenhills Investments Limited 19
4.1.4 Lions Club of Ethiopia CA 01-600173 20
5 Unusual transactions and accounts which indicate abnormal
operation of the bank 21
5.1 Cash transactions 21
5.2 Webs of related accounts 22
5.2.1 Companies related by transaction 22
5.2.2 Paolo Sattanino CA 01-600006, 01-800145, 01-700154 and FX 01-
400006, 01-400145, 01-400154 23
5.2.3 Dilpun Shah Group 25
5.3 Odesys Enterprises account CA 01-000740 26
5.4 Use of sundry creditors account 27
5.4.1 Sailesh Prajapati – Account CA 01 -000148 27
5.5 Unusual loan accounts 29
5.5.1 Parmex Limited 29
5.6 Large transactions and inward and outward telegraphic transfers
which are unsupported 30
5.6.1 Crucial Properties Limited 31
5.6.2 Kariuki Muigua & Co Advocates 33
5.6.3 Kingsway Motors Group 36
5.6.4 American Express Bank, New York - Nostro A/C 01-610000 40
5.6.5 Canara Bank Limited - Nostro A/C 01-710001 42
5.7 Accounts opened, operated and closed within a short time 42
5.8 Payments for insurance premiums 44
5.9 Accounts operated outside their mandates 44
 5.10 Alterations to customer instructions 45
5.11 Foreign currency accounts maintained in Kenya Shillings 47
5.12 Matters noted on review of fixed and call deposits 48
5.12.1 Fixed deposit accounts with debit balances 48
5.12.2 Fixed and call deposit accounts operated and closed without being
credited with interest 50
6 Other accounts with unusual transactions 51
6.1 Creative Innovations Limited 51
6.2 Abdul Qadir Alladina and Mohammed Yusuf – CA 07-600807 51
6.3 Round sum transactions 52
6.4 Triton Petroleum Company Limited A/C no. 01-000352 52
6.5 Accounts with no entry since their opening 53

Appendix (Prepared from analysis of our investigations) I–

VI

Appendix (Extracts obtained from bank’s own information)

A–L
 Formatted: Bullets and Numbering
12 Executive summary
1.12.1 Introduction
The Statutory Manager, Charterhouse Bank Limited appointed PricewaterhouseCoopers Limited to
conduct some investigations under terms of reference contained in the contract dated 12 July 2006.

Under the terms of reference, we were to carry out the following tasks;

i) Review transactions that Charterhouse Bank Limited (“CB Limited” or “the bank”) has
recorded in clients’ accounts with special focus on insider and group-related client
accounts;

ii) Determine if there are any indications of irregularities, such as illegal transactions or
criminal offences, fraud or dishonesty committed in the course of conducting business;

iii) Establish if further work would need to be carried out to provide evidence of any
irregularities committed, or provide any other relevant recommendations;

iv) Determine the status of CB Limited’s compliance with and prudence in following Know
Your Customer (KYC) best banking procedures through review of the appropriateness of
the institution’s KYC policy and its application on all targeted accounts;

v) Determine if there has been any material breach of the Banking Act, the Central Bank of
Kenya Act or the regulations, guidelines or other matters prescribed by the Central Bank
during the period covered by the review.

The scope of the investigation was limited to reviewing information available within the bank. The
investigation did not involve interviewing customers or other third parties or reviewing the records of
or information held by customers and third parties. Consequently, the ability of the review to reveal
criminal or illegal transactions committed by customers is limited. While the review revealed
irregular transactions, it is difficult to ascertain whether criminal or illegal activities have occurred by
reviewing bank records alone. From our reviews, we have reported transactions that are irregular
and give our recommendations on the way forward, including recommendations for further
investigations and follow-up of issues with previous management.

Our work included sampling more than 1,004 accounts in accordance with our terms of reference
and reviewing in detail transactions in those accounts which appeared unusual, with special focus on
insider and group related client accounts. As explained below, we faced considerable handicap in
obtaining information necessary for our review. Therefore, all unusual transactions may not be
reasonably expected to be identified from our work.

1.22.2 Information flow and availability Formatted: Bullets and Numbering

We were faced with some formidable challenges in obtaining information which impeded the
progress of our review. As a result, we were not able to access some of the information that we
would have wished to obtain to make the exercise more effective. Some example of this are;

i) We got the impression of a general unwillingness among the bank’s staff to provide us with
information and only got minimal cooperation from them;

PricewaterhouseCoopers Project Fabio 1

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
ii) The bank’s general manager proceeded on leave without notice at the beginning of the
assignment rendering information flow difficult;

iii) We were not able to obtain certain documents for transactions prior to June 2004 as the
relevant supporting documents were said to have been destroyed in a fire at the company’s
archives in September 2004;

iv) The bank’s core system, Equinox, was down for most of the time and was never fully
functional as it experienced considerable downtime. Efforts to get Equinox vendors, Neptune
Software Limited to resolve these handicaps did not bear much fruit in the first two weeks of
the assignment. Afterwards, the syst em was intermittently down and some of the
functionalities could not be utilised;

v) By the time of writing this report we had not obtained documentation in support of
telegraphic transfers (TTs) for periods prior to 1 January 2005. We also did not obtain
supporting documents for the last quarter of 2005. There were significant transfers made
during this period and especially between 25 and 26 October 2005. The Statutory Manager
attempted to obtain the documents for these 2 days, which we understand were available
but management refused to yield. We also understand that subsequent to our departure
from the bank, the Banking Fraud team was called in to help extract the documents for these
days;

vi) We also requested but did not obtain from the bank’s management supporting vouchers for
the nostro accounts for periods prior to January 2006. The manager in charge of the
department informed us he was new and could only provide information for 2006
transactions. We were only able to get some of this information on the last day of the field
work. Consequently, we could not investigate these accounts fully.

vii) Our use of computer-assisted audit tools to interrogate data was also frustrated as neither
the bank, nor their system vendors could provide the investigating team with the requisite
data dictionaries to enable us interpret the data. This means that whilst we could review the
debit and credit entries in each account, we could not easily identify the other side of the
entries. For example, if we identified a credit entry in the sundry creditors account, it was not
possible to identify the corresponding debit without laboriously reviewing the individual
entries in the various accounts in which we suspected the debit entry would be.

PricewaterhouseCoopers Project Fabio 2

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
1.32.3 Key findings Formatted: Bullets and Numbering

The key findings of our work are as follows:

i) The bank is not following accepted KYC procedures. Although the bank has clearly
documented KYC procedures, these are largely ignored and there is no documented
evidence of the bank attempting to obtain an understanding of the identity of some
of the bank’s active customers or their businesses. There are strong indications of
irregular activity in some of these accounts.

ii) The bank is in breach of the Banking Act and Prudential Guidelines with respect to
single borrower limits and insider lending and reporting / maintenance of documents for
foreign currency transactions.

iii) There is evidence of the bank carrying out banking operations without complying with laid
down internal control procedures or only intermittent application of key laid-down policies
and procedures. Examples of irregular operations include the following:

− Customer mandates were in some cases either ignored or overstepped. We noted

instructions to transfer funds from individuals who did not have appropriate authority;

− Alteration of cheque details;

− Opening and closing accounts for purposes of passing certain specific transactions.

− We also noted instances where cheques honoured for payment by the bank were
not signed by the customer.

− Failure to maintain appropriate records of transactions;

There are numerous anomalies identified which raise doubts about the credibility of the information
and records maintained by the bank. We consider the general control environment in the bank as
weak and we have seen evidence of rampant override of controls by management.

We recommend further investigation into the operations of the bank and more specifically in respect
of some transactions highlighted in this report to rule out the possibility of money laundering,
abetting of tax evasion by customers or other irregularities. We have detailed numerous
unusual transactions in section 5 of the report, which point to possible irregularity, some involving
accounts of companies related to the directors of CB. A number of accounts need to be
investigated further, including all accounts of the Kingsway Motor Group and related
companies, the Kariuki Muigua & Co Advocates accounts, accounts related to Dilpun Shah,
and all accounts identified in the web of transactions involving Paolo Sattanino as discussed
in Section 5.2 of the report. For such further investigation to be effective, it should extend to
speaking to the customers and reviewing their records.

Some of the key findings are summarised below and discussed in greater detail in the main report.

PricewaterhouseCoopers Project Fabio 3

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Know your client (KYC) procedures

Banking best practice requires banks to gain an understanding of the customer’s identity and their
source of funds among other things. CB has developed some KYC procedures that require
prospective customers to supply certain information and to complete account opening forms which
are then approved before an account can be opened. We however noted that these procedures are
largely ignored. Some of the discrepancies are as follows:

i) Numerous account opening forms are missing or are incomplete;

ii) A number of accounts do not have customer’s contact details/addresses. This could be an
indication that such customers do not get statements of account (which acts as a check
against irregular activity in customer accounts).

iii) There are accounts, both personal and corporate, that do not have the customer’s photo
image either on the syst em or on the physical account opening forms. The bank’s KYC
procedures require photo and signature images for both personal and corporate accounts.

iv) Some accounts do not have proper account names. For example, numerous accounts are only
described using initials such as CIL, PIVB, S Shah and D Shah. Some of these accounts do
not have account opening forms and have been used to process unusual transactions.

v) The credit histories for most of the advance files we reviewed are not up to date;

vi) CBK prudential guideline CBK/PG/08 requires banks to report suspicious transactions to CBK.
Some of the transactions observed are suspicious and one would expect a bank to report such
transactions to the Central Bank. There are indications that the bank officials may be involved
in abetting these suspicious transactions.

vii) In the absence of customer details, especially where there are no documents at all signed by
customers, it is difficult to confirm that the customers actually exist in all cases, or whether
accounts have been created to facilitate specific transactions.

Out of the 1,004 accounts sampled for KYC reviews, we did not obtain 839 account opening forms or
customer instructions (being 83% of our sample and representing 217 relationships). We were
informed by management that these forms/ instructions do not exist. We have analysed the results of
the 165 forms that we were able to review in Appendix II.

Of the account opening forms obtained, we have summarised in the table below the key findings
analysed into the following three categories based on the nature of the customer:

• Incorporated businesses

• Unincorporated entities/ partnerships

• Personal accounts

The table below summarises these exceptions:

PricewaterhouseCoopers Project Fabio 4

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Company Other Personal Total
accounts entities accounts

Account opening forms reviewed 98 21 46 165

Account opening documents NOT properly completed by the account

holder 5 1 2 8
Account opening form has NOT been authorised by branch Manager
12 2 5 19
Memorandum and articles of association NOT obtained 10 10
Certificate of incorporation NOT obtained. 15 15
Trade License NOT obtained 50 15 65
Resolution by the board of directors to open account NOT obtained 46 46
Identification details of at least the board Chairman or Managing Director
24 15 6 45
NOT obtained
Address verification documents NOT obtained e.g. Utility bills, bank
63 40 103
statements
Audited financial statements for at least one year NOT obtained 87 9 96
PIN/VAT registration NOT obtained 24 12 32 68
Written confirmation NOT obtained from previous banker where applicable 48 18 16 82
Suitable account introducer NOT verified 28 16 15 59
Copies of documents obtained have NOT been certified as true copies of
10 11 12 33
original
Certificate of registration of business name NOT obtained. 7 7
Identification details of at least two partners is NOT obtained 14 14
Signed partnership deed NOT obtained 7 7
Account opening documents NOT completed by the holder(s) 11 11
NOT verified employment/source of income (e.g payslip) 36 36

Compliance with banking laws and regulations

Banking regulations such as the Banking Act, Central Bank of Kenya Act, Central Bank of Kenya
Prudential guidelines govern the operations of banks. These include limits on a variety of areas and
also reporting requirements on certain aspects of the banks’ operations.

There are four main areas noted where the bank was not in compliance with the requirements
of these regulations i.e. (i) lending limits to single borrowers and their associates, (ii) limits
on lending to related parties, (ii) unsecured lending to officers of the bank and their
associates, and (iv) foreign currency transactions. The key points are listed below

i) The Prudential Guideline CBK/PG/07 (Section 3.2.3) and Section 11 of the Banking Act
prohibit lending in excess of 20% of the institution’s core capital to any one insider and their
associates. We noted instances where lending to directors of the bank and companies
associated with them are beyond these limits. An example is the lending to companies
associated with the Managing Director, Sanjay Shah, which were in excess of 40% of the
bank’s core capital and are equivalent to 11% of the entire lending;

ii) The lending above also exceeds the limits of 25% of core capital imposed by Section 10 of
the Banking Act on facilities to single borrowers and their associates;

PricewaterhouseCoopers Project Fabio 5

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
iii) The Prudential Guidelines CBK/PG/02 (Section 3.5.2.1) requires directors, chief executive
officers and management of a bank to declare any financial interest in customers of the bank
in order to reduce or eliminate conflicts of interest. Thereafter such directors or officers should
not be directly involved in the bank’s dealings with such customers. The bank has extensive
dealings with the Kingsway Group and Creative Innovations Limited in which some directors
have an interest. Based on our review of information provided, there was also evidence that
the disclosures made by the directors to CBK on their other directorships were not complete.
There are numerous companies with which some directors are associated, which have not
been disclosed in their submissions to the Central Bank of Kenya (“CBK”).

iv) Section 11 of the Banking Act and Section 3.5.2.7 of CBK/PG/02 prohibits directors, chief
executive officers and management from granting any advances, loans or credit facilities
which are not fully secured to any of its officers, significant shareholders or their associates.
We noted instances where loans to officers and their associates are unsecured.

v) CBK has issued ‘Guidelines on Foreign Exchange’ that require banks to report any
transaction above US $50,000 and to retain documentary evidence for those transactions.
We were not provided, for our review, with copies of these returns other than for those made
in 2006;

vi) CBK has issued Guidelines on Foreign Exchange that require banks to retain
documentary evidence for those transactions in foreign currency amounting to more
than US$ 10,000. We noted numerous instances of transfers of US $ 10,000 and below
by a single customer to a single beneficiary on the same day indicating an intention to
split such transactions to avoid maintenance of records or reporting transactions
above US $ 50,000 as required by CBK;

vii) From the review of the returns to CBK for 2006, we noted an incomplete return relating to
some funds transferred from the Lion Club of Ethiopia account. We have reviewed
transactions in the Lion Club of Ethiopia account and noted other unusual/ suspicious
transactions;

viii) The bank had about 150 accounts which, although denominated in Kenya Shillings had
almost all transactions in them in foreign currencies. Most of these accounts were closed in
2004 and new accounts opened for the same customers in the respective foreign currencies.
Although the account balances were in shillings, we noted that there were regular
revaluations of the balances indicating that the intention of the bank was to retain foreign
currency value. It is therefore possible that returns made to the CBK on the currency positions
were misleading and did not include these types of accounts.

PricewaterhouseCoopers Project Fabio 6

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Unusual transactions and accounts which indicate unusual operations of the Bank

There is evidence of irregular banking practices based on our review of customer accounts. During
our investigations, we noted a number of transactions that appeared unusual and for which we
recommend further investigation. Instances noted include the following:

i) We noted numerous cases where certain customers engaged in regular large cash
transactions that are considered unusual. There were unusually large cash withdrawals
and deposits which may indicate an intention to conceal the true source or beneficiary
of the payments made. The supporting debit vouchers and deposit slips were not detailed
enough to show to whom the cash was paid or from whom deposits were received;

ii) We noted a pattern of transactions involving a web of related accounts held at the bank which
may indicate an intention to conceal the true source or beneficiary of the payment made. For
example:

− there are several parties making payments directly or indirectly to accounts in

the name of Paolo Sattanino and an entity called Capricorn SRL (no account
opening details are available for these accounts), who in turn make payments
overseas to various parties. We have identified a number of companies involved in
this web, including Kingsway Mart and Creative Innovations. It is not clear what the
transfers relate to. The amounts involved are sometimes significant and are explained
in greater detail in section 5.2 of the report. We recommend that these payments be
investigated further to establish their nature and rule out irregularity.

− A certain Dilpun Shah acts on behalf of several companies which have a link to
payments made to Paolo Sattanino.

iii) We have noted that the bank is using a sundry creditors account for processing payments
from or to customer accounts. Some of the payments debited to customer accounts such as
the Prajapati account as ‘cash withdrawals’ were traced to the sundry creditors account.
There is also evidence that loan repayments for a loan granted to Parmex Limited, originated
from the Sundry creditors account. There is no evidence where the funds came from or
whether these were indeed genuine loan repayments. It is possible that the sundry creditors
account has been used to conceal transactions between accounts. It is also possible that
cash may not have moved as recorded, or cash may not actually have moved into/ out of the
bank.

iv) Unusual loan accounts/transactions. In addition to the Parmex Limited loan transaction
discussed above, we have noted other examples, such as the Sailesh Prajapati account,
where loan accounts have been credited with amounts described as “loan proceeds” or
“transfers” from unexplained or unrelated accounts.

v) There are large inward and outward telegraphic transfers which are unsupported. These are
repatriation and receipt of funds to or from sources and purposes that we could not ascertain.

PricewaterhouseCoopers Project Fabio 7

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 As explained before, we were unable to obtain supporting documents for most foreign
currency transfers. Examples of some of the large transactions noted for which no support
has been provided include the following:

− Crucial Properties Limited – Shs 2 billion received in January 2001 and its subsequent
transfer from the receiving account;

− Kariuki Muigua Client Account – Shs 312 million received from Crucial Properties
Limited in February 2001. The funds were withdrawn within a week and paid to other
parties;

− Kingsway Tyres Limited – there were several large cash and telegraphic transfers in
September, October and November 2005.

− Various foreign currency transactions by Paolo Sattanino.

vi) Some accounts were opened, operated and closed within an unusually short period of time
indicating that they were opened to facilitate specific transactions only;

vii) There were some unusually high “insurance premium” payments to an insurance company
overseas for individual endowment policies debited from the Kingsway Tyres account CA 01-
000795. The supporting documents showed some discrepancies;

viii) There were instances where an account holder used cheques issued in another account’s
name to transact business in his account. This was done by manually altering the account
name and number on the cheques. Most of the transactions done in this manner were
described as cash withdrawals;

ix) Withdrawals/ transactions were made contrary to or without appropriate account mandates;

x) There was a large number of accounts maintained in Kenya Shillings, but having foreign
currency transactions, that were closed in April 2004 and replaced by new accounts. The
instructions to close the old accounts and to open new ones were not made available;

xi) We noted a number of fixed deposit accounts with very unusual transactions. These were
fixed deposit accounts that had a history of debit balances. The debit balances would reverse
in due course through unusual entries and would eventually turn into credit balances.

PricewaterhouseCoopers Project Fabio 8

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Formatted: Bullets and Numbering
23 Know your customer “KYC” procedures
Banking best practice requires banks to gain an understanding of the customer’s identity and their
source of funds among other things. CB has developed some KYC procedures that require
prospective customers to supply certain information and to complete account opening forms which
are then approved before an account can be opened. We however noted that these procedures are
largely ignored. Some of the discrepancies are as follows:

i) Missing account opening forms - Contrary to the requirement that every new customer of the
bank completes a standard account opening form detailing information about the individual or
the entity, most accounts are not supported by either account opening forms or customer
instructions. Of the 1,004 accounts we sampled for review, there were no account opening
forms or customer instructions for 839 accounts (representing 217 relationships). These have
been summarised under Appendix I;

ii) Where the account opening forms were available, we noted numerous instances where the
information on the forms was incomplete. The forms require the customer to provide details
about the account to be opened. Once this form is reviewed, the appropriate bank official
signs it as an indication that the customer’s request has been accepted and an account can
be opened. Details missing included the following:
− Certificate of incorporation, memorandum and articles of association for corporate
customers;
− Trade licenses
− Resolutions of directors to open an account with Charterhouse Bank;
− Address verification documents such as utility bill, or bank statements;

We have summarised in Appendix II the accounts where these details were missing;

iii) The bank requires its new customers to obtain references from existing customers of the
bank. However, we noted instances where potential customers did not obtain such
introductions but instead a bank official noted “known to the bank” in that field. No bank
official has signed the form to confirm this on behalf of the bank;

iv) There were instances where appropriate bank officers had not approved the account opening
forms. We have summarised examples noted where the appropriate approvals are missing.
See Appendix II;

v) The KYC procedures require that copies of documents supplied be certified as “True copies
of the original”. We noted instances where copies had not been certified;

vi) We noted files where the credit history was not up to date. Examples are overdraft accounts
whose facilities have expired and there was no evidence of follow-up since there were no
recent correspondences between the bank and the customer;

PricewaterhouseCoopers Project Fabio 9

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
vii) Accounts without postal or physical addresses

The postal or physical addresses of the following customers from our sample were not recorded as
expected.

Account Name Account type Account No

Kenya Catermart Limited FX 01-400142

Maniben Meghji Shah FX 01-400091
Parmex Limited FX 01-400017
Parmex Limited CA 01-000193
Anandi Vipin Shah CD 01-206954
Sonal Devani FD 01-207285

Lack of postal or other addresses imply the following:

• That the customer does not obtain regular updates of the transactions in that account;

• The accounts may not be genuine. There is a possibility that the companies and individuals
mentioned above are not aware of the accounts above.

• The transactions processed in these accounts may be irregular and would call for further
investigations.

viii) Accounts using unusual names - opened using initials

Our review revealed accounts as well as beneficiaries whose names appeared to be short forms.
Examples include the following:

• An account by the name CIL – whose directors were the same as those operating the
account of Creative Innovations Limited;

• A beneficiary by the name PIL receiving payments from Creative Innovations Limited;

• An account by the name D Shah (which may relate to accounts operated by Dilpun Shah);

• An account named S Shah;

• An account named PIVB (whose details we did not obtain).

Other than CIL, we were not provided with the account opening forms for the accounts above. We
were therefore not able to confirm other details of these accounts. There were some unusual
transactions in some of these accounts.

PricewaterhouseCoopers Project Fabio 10

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Formatted: Bullets and Numbering
34 Compliance with laws and regulations
3.14.1 Requirements of the Banking laws and regulations
In accordance with the terms of reference, we carried out a review of compliance with the various
laws and regulations in place during the period under review. The key requirements of the various
regulations relevant to this exercise cover a wide range of matters including the following:

i) Corporate governance - The guidelines among other things, apply to the duties,
responsibilities and code of conduct for shareholders, directors, chief executive officers and
management of the bank. The code of conduct deals with outside financial interests by the
directors and insider loans as well as the required disclosures.

ii) Proceeds of crime and money laundering (prevention) - The guidelines deal with methods
of prudent customer identification, record keeping, identification of suspicious activities and
the need to report such activities to the appropriate authorities for further investigation. The
guidelines require that banks report any suspicious transactions to the CBK.

iii) Enforcement of banking laws and regulations; the guidelines deal with the supervisory role
of the CBK and the role of the board of directors in ensuring that laws are enforced and
weaknesses noted from CBK inspections are acted on.

iv) Foreign exchange transactions - The CBK guidelines require banks to maintain supporting
documents for all transactions above US$ 10,000 or equivalent, in addition to the
requirement that they report any transaction above US$ 50,000.

v) Prohibited business - This guideline applies to transactions by the bank including insider
lending limitations, single borrower limits, requirement to obtain security for any insider
lending, and prohibition of reckless and fraudulent activities.

The following were noted from this review:

3.24.2 Returns to CBK Formatted: Bullets and Numbering

Management made available to us the returns made to CBK in 2006. For these returns, we focused
on foreign currency transactions to ensure that transactions that required reporting to CBK were
appropriately reported. Our review has indicated evidence of non-compliance, especially for
transactions above the required reporting threshold of US$ 50,000, and in respect of maintaining
documents for transactions above US$ 10,000.

The table below shows details of some transactions which we traced to TT confirmations that were
not appropriately reported. For most, no appropriate supporting documents were made available for
our review. A number of these transactions were in cash and were not properly supported.

PricewaterhouseCoopers Project Fabio 11

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Date of
instructions Amount From Account To Comments

Details were not Details were TT reference per the Amex GL

6-Oct-04 US$ 70,000 available not available account: TTFX 896
Kingsway and
US$ Creative Innovations TT reference per the Amex GL
4-Feb-05 200,000 Limited Tradex Srl account: TT 0117 REM
Astral Aviation An amount of US$ 59,500 was
Discounting of cheque US$ account collected in cash by a Tajmina
19-May-06 US$ 68,000 from Exel Kenya. 600181 Mohamed of ID No. 22146232.
The attached invoice from Medisel (K)
Ltd was addressed to Mr Manoj Shah/
Bank draft in the Ms. Zahida of Kingsway Tyres &
US$ Lions Club of Ethiopia name of Medisel Automart.
19-Jun-06 100,000 US$ a/c 600173 (K) Ltd See Appendix A.
US$ a/c 600085 of Cempack Ltd
Alloy Steel Castings US$ retention No details of what was being paid for
30-Jan-06 US$ 21,000 Ltd a/c 600025 were attached
The amount was collected in cash by
Hirji Ramji Patel of ID No. 11447259.
This was described as float for flight.
However the instructions were
Astral Aviation US$ stamped received by Charterhouse
9-May-06 US$ 15,400 account Not applicable on 9 Apr 06.
Instructions were received by the
Discounting of cheque bank on 13 Jun 06 and Hirji Ramji
000172 from Astral Aviation Patel of ID No. 11447259 was to
Development US$ account collect US$ 32,400 in cash against
12-May-06 US$ 36,750 Alternative Inc. 600181 the same cheque.
Astral Aviation US$ Amount paid in cash to Hirji Ramji
22-May-06 US$ 22,000 account 600181 Not applicable Patel of ID No. 11447259.
Amount paid in cash to Hirji Ramji
Patel of ID No. 11447259. The
amount field had been overwritten
Astral Aviation US$ and not countersigned. The cash was
22-May-06 US$ 22,000 account 600181 Not applicable collected on 23 May 06.
Astral Aviation
Discounting of cheque US$ account The amount was collected in cash by
31-May-06 US$ 27,400 from Tradewinds. 600181 Hirji Ramji Patel of ID No. 11447259.

For remittances related to the Paolo Sattanino accounts, we noted that they were only supported by
electronic mails. See further work under 5.2.2.

3.34.3 Splitting of foreign currency transactions Formatted: Bullets and Numbering

From a review of a sample of customer instructions, we noted instances where single payments
were split into several telegraphic transfers. One such instance was through a letter dated 10
January 2005 from Creative Innovations Limited (See Appendix B) requesting the bank to make
transfers to various beneficiaries, among them Paolo Sattanino.

The instructions to pay Paolo Sattanino required the bank to remit US$ 90,000 and Euros 19,000 in
amounts of less than US$ 10,000 each over consecutive dates.

PricewaterhouseCoopers Project Fabio 12

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Although the value of the transaction is significantly above the US$ 50,000 limit set by CBK for
reporting and obtaining supporting documentation from the customer, this seems to have been
avoided by splitting the transaction.

The table below illustrates some transfers split under instructions from Creative Innovations in
January 2005. We have traced the transfers to the accounts of Paolo Sattanino; CA 01-800145 and
CA 01-600006. The customer instructions appear unusual and may be aimed at ensuring that
reporting to CBK does not become necessary.

Date Beneficiary US$ Account credited

17-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
18-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
19-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
20-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
21-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
24-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
25-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
26-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
27-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
Total 90,000

Euro
28-Jan-2005 Paolo Sattanino 6,325 CA 01-800145
31-Jan-2005 Paolo Sattanino 6,250 CA 01-800145
01-Feb-2005 Paolo Sattanino 6,425 CA 01-800145
Total 19,000

There were other foreign currency payments made out of Creative Innovations Limited account
number 01-000009. These payments also indicated possible splitting of amounts as there were
several remittances to a single beneficiary on the same date. We have summarised these in
Appendix III.

There were other payments of this nature to Paolo Sattanino from the Kingsway Mart Limited
account CA 01-000564.

3.44.4 Insider lending Formatted: Bullets and Numbering

Our review of lending to directors, their associates, and companies related to the directors revealed
breaches to the Banking Act. These breaches are summarised below:

• Lendings to Sanjay R Shah and companies associated with him as on 23 June 2006 stood at
40.5%, exceeding the 20% limit set out under the revised guidelines and under Section 11 of
the Banking Act;

PricewaterhouseCoopers Project Fabio 13

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
• Lendings to Sanjay R Shah and companies associated with him (including his brother, Manoj R
Shah) as at 23 June 2006 exceeded the 25% maximum permitted under Section 10 of the
Banking Act for any one single borrower;

• The disclosures made to CBK on lending to insiders were incomplete. Since these returns are
made by bank officials, the omissions would indicate either negligence or concealment.

The table below shows the lending to Sanjay Shah and associated entities. We have identified the
companies, other entities and individuals associated with him below:

Account Name A/C No. Balance at Association Relationship %age

23.06.06 of core
Shs capital

Creative Innovations Ltd 01-800842 15,102,210 Sanjay Shah Director / Shareholder

Creative Innovations Ltd 01-800848 1,291,499 Sanjay Shah Director / Shareholder
Creative Innovations Ltd 01-800849 1,291,498 Sanjay Shah Director / Shareholder
Creative Innovations Ltd 01-800850 15,103,875 Sanjay Shah Director / Shareholder
Creative Innovations Ltd 01-000009 64,987,278 Sanjay Shah Director / Shareholder
Hameco Ltd 01-000014 1,954,613 Sanjay Shah Director / Shareholder
Hameco Ltd 01-301113 230,400 Sanjay Shah Director / Shareholder
Hameco Ltd 01-301060 12,986,326 Sanjay Shah Director / Shareholder
Sanjay, Manoj, Mehraz
Nu Metro (Kenya) Ltd 01-301028 11,526,936 & Hamed Director / Shareholder
Sanjay, Manoj, Mehraz
Nu Metro (Kenya) Ltd 03-000046 4,693,469 & Hamed Director / Shareholder
Cottex Manufacturers 01-000005 2,656,272 Sanjay Shah Director / Shareholder
M. R. & S. R. Shah 01-000002 2,249,992 Sanjay Shah, Manoj Director / Shareholder 22.6%
Jamachar (Kenya) Ltd 01-300975 20,994,302 Manoj Shah, Nitin Shah Director
Jamachar (Kenya) Ltd 01-301084 4,624,187 Manoj Shah, Nitin Shah Director
Jamachar (Kenya) Ltd 01-000156 6,879,712 Manoj Shah, Nitin Shah Director
Kings Investments Ltd. 01-300685 2,000,000 Manoj Shah, Nitin shah Director
Kingsway Tyres Ltd 01-000761 313,846 Manoj, Nitin & Kamal Director / Shareholder
Kingsway Tyres Ltd 01-000109 54,942 Manoj, Nitin & Kamal Director / Shareholder
Kingsway Tyres Ltd 01-000795 3,183,500 Manoj, Nitin & Kamal Director / Shareholder
Kingsway Tyres Ltd 01-000426 51,644,749 Manoj, Nitin & Kamal Director / Shareholder
Kingsway Tyres Ltd 01-300971 16,350,015 Manoj, Nitin & Kamal Director / Shareholder 17.9%
Total 240,119,621
Core capital at 31 March 2006 593,069,000 Total percentage 40.5%
* The table above has been prepared based on information maintained at the bank.

Based on the above table, the bank has not complied with lending limits for insiders set by the
Banking Act and there may have been intentional withholding of necessary information from the
CBK.

We have included Appendix L showing the Insider lending disclosed to CBK as at 31 March 2006.

PricewaterhouseCoopers Project Fabio 14

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
Securities for insider lending

Prudential Guideline CBK/PG/02 3.5.2.7 and Section 11 of the Banking Act prohibit directors, chief
executive officers and management from granting any advances, loans or credit facilities which are
not fully secured to any of its officers, significant shareholders or their associates. We noted
instances where loans to officers and their associates were unsecured.

We reviewed documentation of 25 advances identified as relating to insiders and noted the following:

• We noted instances where advances and instalment agreements were not properly
documented. The amounts advanced, the instalments due as well as the guarantee
indemnities did not bear the names of the borrower, amounts borrowed and the instalments
due.

• There were no customer board resolutions for 13 corporate advances whereas for 7
advances, the board resolutions did not have key details such as the date of the resolution.

• 8 advances did not have any securities, whereas 15 advances did not indicate value of the
security;

• For 15 of the related party advances, the were no registered charges (legal charges) for the
securities provided;

Appendix IV summarises the results of tests carried out with regards to insider lending.

We have included examples of incomplete securities documentation as Appendix C.

PricewaterhouseCoopers Project Fabio 15

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Formatted: Bullets and Numbering
45 Transactions with related parties
4.15.1 Deposits by the directors of the bank and their families
Our review of deposits from directors, shareholders, their associates, and companies related to them
revealed that they contributed at least 24% of the total bank’s deposits as at 23 June 2006.

We have noted a number of unusual deposit accounts as discussed further under Section 5.11.1
which are associated with the directors and their families. These may need to be investigated further
to confirm that they exist and are accurate.

The table below summarises deposits by the directors of the bank and their families:

Shareholders/directors, families and associates Associated deposits

Shs
Sanjay Shah 111,843,722
Manoj Shah 61,572,080
Manish Shah 15,127,757
Nitin Shah 14,633,402
Mehraz, Hamed Ehsani & family 97,724,859
Shah & Ehsani joint accounts 94,912,949
Atul Shah 66,457,008
Kingsway Tyres/ Motors/ Properties 11,953,265
Yellowstone Enterprises Limited 4,083,917
Nu Metro Kenya Limited 101,000
Magnolia 37,210,248
Hameco 15,420
Jamachar Kenya Limited 589,864
Market Masters Limited 2,085,201
Nairobi Mineral Water Co. Limited 22,932
Kamal R Shah 10,276,970
Greenhills Investment Limited 260,651
Fresh n Juici Limited 1,000,000
Nakumatt Holding / Investments 174,324,380
Total 704,195,625
Total Deposits 2,942,648,725
Percentage 24%

4.1.15.1.1 Accounts operated by the Kingsway group Formatted: Bullets and Numbering

Kingsway Tyres & Automart Limited, Kingsway Tyres Limited, Kingsway Motors Limited and
Kingsway Investments Limited are companies related through common directorships and common
shareholding. The companies have operated and still continue to operate numerous accounts with
CB.

The relatively low balances in these accounts as shown in the table below are in contrast to the high
turnover experienced within the accounts during the past few years.

PricewaterhouseCoopers Project Fabio 16

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
The table below summarises the accounts the Kingsway group of companies operated as at 23 June
2006 when the bank was put under statutory manager.

Accounts with credit balances as at 23 June 2006

Type of
A/c no. Currency Customer Name Balance Shs
Account
CA 01-000007 Shs Kings Investments Ltd. 716,445
CA 01-000008 Shs Kingsway Properties Ltd 603,141
CA 01-000012 Shs Kingsway Tyre & Automart Ltd 36,720
CA 01-000145 Shs Kingsway Tyres Ltd, Mombasa Branch 537,374
CA 01-000348 Shs Kingsway Tyres Ltd - Corner Plaza 468,982
CA 01-000425 Shs Kingsway Tyres Ltd( Piranha Centre) 127,517
CA 01-000560 Shs Kingsway Tyres Ltd -Village Market 78,896
CA 01-000673 Shs Kingsway Tyres Ltd - Downtown 214,672
CA 01-000690 Shs Kingsway Tyres Ltd-Classic Tyre Centre 227,816
CA 01-000777 Shs Kingsway Tyres Ltd - Nakuru 59,535
CA 01-000794 Shs Kingsway Tyres Ltd - U - W -Branch 1,931,663
CA 02-000717 Shs Kingsway Tyres Limited-Petty Cash A/C 63,320
CA 09-000004 Shs Kingsway Tyres Kisumu 304,919
CA 10-000130 Shs Kingsgate Enterprises Ltd 10,500
FD 01-205388 Shs Kingsway Tyre & Automart Ltd 117,942
FD 01-205475 Shs Kingsway Motors (K) Ltd 3,023,602
FD 01-205479 Shs Kingsway Tyre & Automart Ltd 3,024,854
CA 01-600182 US$ Kingsway Tyres Ltd-University Way Branch USD 13,498
CA 01-700226 GBP Kingsway Tyres Ltd-University Way Branch GBP 1,000

Accounts with debit balances as at 23 June 2006

Type of
A/c no. Currency Customer Name Balance Shs
Account
CA 01-000109 Shs Kingsway Tyres Limited(Funzi Rd) 54,942
CA 01-000426 Shs Kingsway Tyres Ltd(University Way) 51,644,749
CA 01-000761 Shs Kingsway Tyres Limited - Eldoret 313,846
CA 01-000795 Shs Kingsway Tyres Ltd- Recovery A/C 3,183,500
LN 01-300685 Shs Kings Investments Ltd. 2,000,000
LN 01-300971 Shs Kingsway Tyres Ltd-University Way Branch 16,350,015
Total advances 73,547,052

The turnovers of three accounts which were sampled for detailed review are summarised below;

A/c no. Customer Name Type Debit turnover Date account Balance at
since opening was opened 23-Jun-06
of account Shs
01-000564 Kingsway Mart Limited CA 1,800,000,000 2-April-2004 Closed
01-000426 Kingsway Tyres Limited CA 2,943,610,545 6-May-2003 (51,644,749)
01-000012 Kingsway Tyres & Automart Ltd CA 3,923,881,639* Prior to 1999 36,720
* Turnover relates to the period from 1 January 1999 to 23 June 2006.

As noted in Section 5.5 of this report, our review of transactions in the three accounts above
indicated unusual transactions for which we recommend further investigation. In addition, further
investigations are recommended to establish whether a relationship exists between the level of

PricewaterhouseCoopers Project Fabio 17

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 turnover in the bank accounts above and the revenue turnover reflected in the statutory accounts of
these companies.

4.1.25.1.2 Nakumatt Holdings Limited - CA 01-000085 Formatted: Bullets and Numbering

Nakumatt Holdings maintained three accounts as at 23 June 2006; a call deposit account, a US$
current account and a shilling current account. The shilling current account CA 01-000085 was the
most active.

The review of this account showed very substantial credits on a regular basis. We understood from
enquiry with management that the practice is for Nakumatt to deposit its collections into its Barclays
accounts and then transfer to CB those funds required to settle suppliers’ liabilities. We however
noted the following matters that appeared unusual and which require further investigation:

i) We noted that during the period between May 2003 and October 2003, an amount of Shs 3.6
million was transferred to the Prajapati account on a weekly basis. There were 22 such transfers
totalling Shs 79.2 million for which no supporting documentation was available as these were
said to have been destroyed in a fire in September 2004. The transfers have been summarised
in the table below:

Date Description per account Cheque No. Shs

2-May-03 Chq S. Prajapati Pd 169265 3,600,000
9-May-03 Chq. Sailesh Pd 169266 3,600,000
16-May-03 Chq Sailesh 169267 3,600,000
23-May-03 Chq. Sailesh Prajapati 169268 3,600,000
30-May-03 Chq. Sailesh Prajapati 169269 3,600,000
6-Jun-03 Chq Sailesh Pd 169270 3,600,000
13-Jun-03 Chq S. Prajapati Pd 169271 3,600,000
20-Jun-03 Ch Q S. Prajapati Pd 169272 3,600,000
4-Jul-03 Chq S. Prajapati Pd 169273 3,600,000
11-Jul-03 Chq Sailesh P Pd 169274 3,600,000
18-Jul-03 Chq Sailesh P Pd 169275 3,600,000
25-Jul-03 Chq Sailesh Pd 169276 3,600,000
1-Aug-03 Chq Sailes Pd 169277 3,600,000
8-Aug-03 Chq Sailesh Pd 169278 3,600,000
15-Aug-03 Chq S. Prajapati Pd 169279 3,600,000
22-Aug-03 Chq Sailesh Pd 169280 3,600,000
29-Aug-03 Chq Sailesh P Pd 169281 3,600,000
5-Sep-03 Chq Sailesh P Pd 169282 3,600,000
12-Sep-03 Sailesh P Pd 169283 3,600,000
19-Sep-03 Chq Sailesh P Pd 169284 3,600,000
3-Oct-03 Chq Sailesh P Pd 169285 3,600,000
13-Oct-03 Chq S. Prajapati Pd 169286 3,600,000

PricewaterhouseCoopers Project Fabio 18

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 ii) We also noted that in December of the same year, large transfers were made to the Prajapati
account from the Nakumatt account for which no support was provided. These are as per the
table below:

Date Description Shs

29-Dec-2003 Trf CA 01-000148 30,000,000
30-Dec-2003 Trf CA 01-000148 20,000,000

iii) On 20 December 2005, a single debit transfer of Shs 120 million was made from the Sundry
Creditors account SC 01-600000 to the Nakumatt account CA 01-000085. On the same day,
another debit transfer of Shs 12 million was made. No support was provided for these
transactions. These are shown in the table below:

Date Description Shs

20-Jan-05 chq no. 000540 Nakumatt Holdings 12,000,000
20-Jan-05 chq no. 001261 Nakumatt Holdings 120,000,000

iv) We noted a cheque of Shs 6 million which was signed by one signatory contrary to the mandates
documented. The cheque used to make this withdrawal had alterations on its face that were not
counter-signed. The alterations related to blotting out the name of the account on the face of the
cheque as well as the account number and replacing them with Nakumatt details. We have
included a copy of this cheque as Appendix D.

v) There were regular payments to the Fresh an Juici account of Shs 6.5 million on a regular basis
for which we did not see any standing instructions. Between April 2005 and April 2006, Shs 286
million had been transferred in this manner.

We have classified these transactions as unusual and requiring further investigation as it is not clear
what the bases of the transactions are, or because we identified irregularities in the accounts to/
from where payments were made.

4.1.35.1.3 Greenhills Investments Limited Formatted: Bullets and Numbering

The company has an active current account whose directors include Manish and Manoj Shah who
are brothers to the bank’s managing director, Sanjay Shah. Other directors are Mehraz Ehsani and
Hamed Ehsani both of whom are also directors of the bank. The company is involved in property
business and other financial assets, and we understand it owns the Village Market Complex in Gigiri,
Nairobi.

There were several large or unusual transactions, in respect of which we were not provided with
appropriate supporting documents, as summarised below.

Date Ref Description Shs

24/09/2002 Misc. Credit 42,945,000

24/12/2002 TRF to Abbas Ehsani (98,000,000)
30/12/2002 27340 Local Cheque Deposit 98,000,000

PricewaterhouseCoopers Project Fabio 19

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Date Ref Description Shs

19/08/2003 CHQ 2259 Sent for Clearing Re 25,000,000

29/11/2003 Trf CFC bank 90,000,000
11/05/2006 1 Local Cheque Deposit 33,000,000
01/09/2003 Cash Paid (5,000,000)
17/11/2003 Cash withdrawal (4,500,000)
22/12/2003 Cash withdrawal (4,500,000)
22/12/2003 Cash withdrawal (5,500,000)
23/12/2003 Cash Trf (6,200,000)
23/12/2003 Cash Trf (7,500,000)
08/01/2004 Cash withdrawal (5,000,000)
09/02/2004 Cash Withdrawal (5,000,000)

4.1.45.1.4 Lions Club of Ethiopia CA 01-600173 Formatted: Bullets and Numbering

Documents provided showed that Lion Club of Ethiopia opened an account with the bank on 20 April
2004. As per the documents, the customer was introduced by Mr Manoj Shah. The following gaps
were identified:

• The documentation relating to the opening of the account was incomplete as there were no
resolutions by the trustees (or equivalent) of Lions Club of Ethiopia to open the account

• We noted a transfer of GBP 400 from this account to Miss Priyum Shah (National
Westminster Bank Plc), a daughter of Manoj Shah. See Appendix E for the details.

• We noted a payment of US$ 30,200 paid in cash to Helen Kadri Bandi - ID 13370468 on 19
May 2006. The payment instructions were not in the institution's letterhead but rather
comprised an invoice from Medisel (K) Ltd. On 15 June 2006, another US$ 10,000 was paid
to Eunice Wairimu Wambugu - ID 9256544 without instructions from Lion Club of Ethiopia.

We sampled a few transactions from the account to check whether they were properly supported:

Date Transaction USD Work Done

Description
20-May-05Chq No. 13371
25-May-05Transfer
21-Jun-05BCHQ 60 issued
28-Nov-05Transfer
29-Nov-05Transfer
Chq no. 14644
2-May-06realised
19-Jun-06Bchq 330 issued
22-Jun-06TTFX 4181 Rem
DR/ (CR)
(39,033) No supporting document availed
Transfer to CA 610 which belongs to Lions club of Ethiopia. Seen
38,500 instructions signed by Zaida Sadik to sell the dollars @Ksh 76/$
Seen instructions dated 20 Jun 05 to prepare a draft to Medisel Ltd as
payment for purchase of medicine. The invoices are dated February
20,000 2005 and total to Ksh 13M
10,000 No supporting document availed
50,000 No supporting document availed
No supporting document availed
(116,633)
100,000 No supporting document availed
This related to TT4181 from Lions Club of Ethiopia to transfer GBP
741.23 400 to Miss Priyum Shah (National Westminster Bank Plc)

PricewaterhouseCoopers Project Fabio 20

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Formatted: Bullets and Numbering
56 Unusual transactions and accounts which indicate
abnormal operation of the bank

5.16.1 Cash transactions Formatted: Bullets and Numbering

We noted that the bank had customers who were making withdrawals in cash that we considered to
be high and/ or unusual. These transactions appeared to have no commercial substance as these
customers would deposit material sums described as cash deposits which would be followed by full
withdrawals on the same day.

The transactions were considered unusual due to the following:

• The cash withdrawals were high, averaging Shs 1 million

• Some of the accounts operated almost entirely on a cash basis for both deposits and
withdrawals

• The accounts had very high activity on some particular days during which large sums of
money would be deposited and withdrawn

The table below shows some of the accounts that exhibited the above characteristics. There are
numerous other accounts with such transactions which are described in the following sub-sections.

Account Name Account Account

No. Type
Kingsway Tyres Ltd-
Recovery A/C 01-000795 CA
M. R. & S. R. Shah 01-000002 CA
Nisha & Pushpa Shah 01-100149 SB
Kitek (7) Ltd, Kahawa 01-000396 CA
Mitesh & Manish N
Shah 01-100009 SB
Meshack Ngare Ondieki 04-000006 CA
Naina Manish Shah 01-100416 SB
Pacific Systems Ltd 01-000207 CA

Formatted: Bullets and Numbering

PricewaterhouseCoopers Project Fabio 21

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 5.26.2 Webs of related accounts

5.2.16.2.1 Companies related by transaction Formatted: Bullets and Numbering

During our review of customer accounts, we noted accounts that have similar patterns of
transactions.

These accounts include:

Account Name Account No. Account Name Account No.

Fones Direct CA 01-000461 Capricorn SRL FX 01-400093/ 8
Phones Direct CA -1-000515 Creative Innovations CA 01-000009
Intra Market Trading CA 01-000420 Kingsway Mart limited CA 01-000564
Panorama Imports CA 01-000518 Paolo Sattanino 01-400145,
01-800145,
01-400006 &
01-600006
Brand Imports CA 01-000167/613 Paul Mburu 02-000463
Triton Petroleum CA 01-000352 Cargo Distributors 02-000540
Cashline Forex Bureau CA 05-000014

Transactions in these accounts have pointed to payments of cash that ends up in either Paolo
Sattanino’s account or at Paramount Bank Limited. These payments are summarised as follows:

• The transactions in these accounts indicate that cash is paid from the Fones Direct & Phones
Direct accounts into Intra Market Trading. From this account, the cash is then transferred to
Cashline Forex Bureau. The bureau then makes a transfer to Paramount Bank Limited;

• Brand Imports, Triton Petroleum, and Panorama Imports make transfers to Cashline Forex
Bureau account before it is transferred to Paramount Bank Limited. Brand Imports also
makes transfers to the Capricorn account;

• Kingsway makes payments to Paul Mburu who then makes transfers to Cargo Distributors
who in turn makes a transfer to Paolo Sattanino. Kingsway also makes direct transfers into
the Paolo Sattanino account;

• Creative Innovations makes payments to both the Paolo Sattanino and the Capricorn
accounts;

PricewaterhouseCoopers Project Fabio 22

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 The credit balances in the Paolo Sattanino and Capricorn accounts are then transferred out of the
country through telegraphic transfers without supporting documents other than e-mail
correspondence from Paolo Sattanino. Some of the beneficiaries to which these funds are
transferred include the following:

i) Ettore Longo in Italy

ii) Hilda in Italy

iii) Tradex SRL

iv) Capricorn SRL

v) Parmex Limited directly or through Paolo Sattanino

vi) Others are Abdi and J Nyaga

Further investigations are required to understand why these funds are transferred and who the
ultimate beneficiaries are.

See Appendix V for further description of these relations.

5.2.26.2.2 Paolo Sattanino CA 01-600006, 01-800145, 01-700154 and FX 01-400006, 01-400145, 01- Formatted: Bullets and Numbering
400154
Paolo Sattanino, based in Italy, is a customer of the bank who, over the years, has operated a
number of accounts at the bank. Paolo Sattanino’s account opening forms were not made available
for our review. We however noted that the accounts under this name received funds from other
customers of the bank. The account was credited on a regular basis with funds from various
customer accounts.

We noted the following anomalies in regard to this account:

• A number of companies and individuals such as Creative Innovations Limited, Brand Imports
Limited, Aua Industria Limited and Suresh Shah regularly transfer funds to Paolo Sattanino
and Capricorn SRL accounts in lots of US$ 10,000 or Euro equivalent. Refer to Section 3.3
for examples with regards to transaction splitting.

• There was e-mail correspondence from Paolo Sattanino directing the bank to transfer money
through telegraphic transfers outside the country. The transfers were not supported by
relevant documentation as required for transfers whose value is above US$ 10,000. Refer to
Appendix VI for money transferred from Paolo Sattanino’s accounts.

PricewaterhouseCoopers Project Fabio 23

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
• We noted instances where Paolo gave instructions to the bank to transfer funds but to
indicate the remitter as a different entity or individual. This would amount to falsifications of
the declarations made and the bank would be guilty of facilitating false declarations. For some
of these transfers, the TT confirmations supporting the transactions were not made available.
These have also been summarised as part of Appendix VI.

• There are indications of possible account splitting to avoid providing documentation in support
of the transactions by ensuring that the values were at US$ 10,000 or less.

• For some of the sampled transactions in the Paolo Sattanino accounts, customer instructions
were not provided for our review. These have also been summarised in Appendix VI.

We have included some e-mail correspondences in respect of these accounts under Appendix F.

Formatted: Bullets and Numbering

PricewaterhouseCoopers Project Fabio 24

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
5.2.36.2.3 Dilpun Shah Group
During the course of our work, we noted various accounts that appeared to be operated by one
person. There were transactions in these accounts that linked them to a certain Dilpun Shah. A
number of payments made from these accounts related to overseas payments through the accounts
of Paolo Sattanino.

The deposit slips into these accounts appeared to share the same handwriting pointing to the
possibility that these accounts were being operated by one person or by a small group of people.
See Appendix G.

We have reviewed transactions in the accounts that appear related and have presented the
accounts graphically below:

Phonelink Ltd
CA 509
Le
ct xu
ire sS
e s D 61 CA tatio
n 16 ner
Fo CA 4 0 s

t Glo
c ba
ire Ltd l Bra
e sD 5 CA nds
on 51
Ph CA 76 K
6

Dilpun Shah
Brand Imports V Market Choice
Govindji
CA 613 K Ltd CA 429
Lakhamshi

td
Im Pano aL
po ny
rts rama e
K 12
CA nz 7
51 Tre CA
8

An
i
Inv ket P
es rop h
tm e ha
CA ents rty & D S 374
77 Ltd
1 CA

PricewaterhouseCoopers Project Fabio 25

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
5.36.3 Odesys Enterprises account CA 01-000740 Formatted: Bullets and Numbering

Odesys Enterprises is a sole proprietorship account that was opened by a Mr. Felix Odemba Nabuko
whose address was indicated as P.O. Box 25 Butere, Maramba, Shibembe. The account was
opened on 25 Aug 2005 and the account opening forms contain no details regarding his business.

The account opening forms indicate that Felix was introduced to the bank by an existing customer of
the bank, a Mr. Dilpun Shah. Our reviews revealed that Dilpun is a director of Brand Imports, Fones
Direct and Phones Express all of whom had accounts at the bank as at 23 June 2006.

Over the 10 months’ period to 23 June 2006, the account’s turnover was Shs 554,842,767 debits
and Shs 566,256,592 credits. The account also had significant cash deposits accompanied by
withdrawals of similar amounts on the same day. These transactions appear to have no commercial
rationale and are inconsistent with a business operating from Butere. The following matters were
noted:

• The turnover is high for a trader in Butere and the account needs to be investigated further for
tax compliance;

• A majority of the transactions are in cash which is unusual especially for a business in Butere,
in Western province where the bank has no branch operations;

• There were significant cash payments on particular dates, pointing to the possibility that the
account was being used for other purposes.

The table below shows a sample of some of the transactions recorded in the account showing cash
receipts and payments.

Account CA 01- 000740 in the name of Odesys Enterprises

Date Reference Description as per the customer Shs

statement
Dr/ (CR)
19/09/2005 0 Cash pd chq 3586 3,470,250
19/09/2005 0 Cash recd (6,001,125)
26/09/2005 3589 Cash pd 3,360,000
26/09/2005 3588 Cash pd 4,000,000
26/09/2005 3587 Cash pd 4,367,400
26/09/2005 0 Cash recd (6,070,300)
03/10/2005 0 Cash recd (3,612,550)
03/10/2005 0 Cash paid chq no. 000 4,842,500
12/01/2005 0 Cash pd 10,060,000
16/01/2006 0 Cash pd 4,090,000
16/01/2006 0 Cash pd 4,700,000
16/01/2006 0 Cash pd 5,475,000
16/01/2006 0 Cash pd 5,475,000
17/01/2006 Trf chq dep (3,330,500)

PricewaterhouseCoopers Project Fabio 26

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Date Reference Description as per the customer Shs
statement
17/01/2006 Trf chq dep (4,326,325)
17/01/2006 Trf chq dep (4,464,890)
09/02/2006 84 Cash pd 4,033,000
09/02/2006 82 Cash pd 4,500,000
09/02/2006 83 Cash pd 4,600,393
06/03/2006 Trf chq dep (4,273,000)
06/03/2006 Trf chq dep (4,273,750)
20/04/2006 0 Cash pd 7,200,000
29/05/2006 Cash pd chq no. 3,005,000
29/05/2006 Cash pd chq no. 3,900,000
29/05/2006 Cash pd chq no. 4,090,000

5.46.4 Use of sundry creditors account Formatted: Bullets and Numbering

The bank maintains a sundry creditors account in its general ledger. A review of this account
indicates that it is used for various kinds of transactions. These include the following

• Call and fixed deposits, once matured are credited into this account before being paid out to
depositors;

• Upcountry cheques are also posted through this account until they clear at which point they
are posted into the customer account;

• Cash transfers from branches to the head office are also posted into this account

• We have also noted instances where transactions described as ‘cash withdrawal’ were traced
to this account pointing to the possibility that there were no actual cash withdrawals.

The first three transaction types above would be normal in a sundry creditors / clearing account,
where amounts are expected to clear within a short period. However, our concern is that this
account may be used to mask other transactions, in particular transfers between customer accounts.
From the above, we propose that any further investigation should also include a detailed review of
this account to establish the nature of transactions recorded in it.

5.4.16.4.1 Sailesh Prajapati – Account CA 01 -000148 Formatted: Bullets and Numbering

The account was opened on 8 January 1999 and closed on 2 August 2004. There are no account
opening forms and there were no details of the mandates to operate the account within the banking
system. We were therefore unable to establish the background details relating to this account.

During this period, the account debit turnover was Shs 2.2 billion. We were also not able to establish
the signing mandates on the account because the transaction records were not made available.

PricewaterhouseCoopers Project Fabio 27

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 From our detailed review of the account, we noted some transactions we considered unusual as
described below.

i) Amounts debited into this account as ‘cash withdrawals’ were traced to the Sundry creditors
account No. 01-600000 in the general ledger. Cash may have never left the bank although
the entries in the account are described as if cash was paid out;

ii) Numerous transactions of exactly the same amounts. There were over 1,300 cash deposits of
Shs 1 million each out of 1,570 total credits during the period. Of the remaining credits, Shs
105 million was received from Nakumatt in 28 equal transactions of Shs 3.76 million each;

iii) Other unusual transactions were made of what was described as loan proceeds from other
accounts whose relationship with the Prajapati account we were not able to confirm.

iv) All the Shs 1 million deposits mentioned above were in cash, which is unusual for a trading
account.

v) The account has numerous credits described as cash receipts. Based on the ‘cash
withdrawals’ traced to the sundry creditors account, the ‘cash receipts’ may also not relate to
actual cash received.

The table below shows some of the credits into the account described as ‘loan proceeds’ and which
may require further investigations.

Date Description Shs

28/11/2003 Loan proceeds From Ln 651 20,000,000
10/03/2003 Loan proceeds Ln 530 7,000,000
10/03/2003 Loan proceeds Ln 529 20,000,000
11/03/2003 Loan proceed Simon W.Ln 531 5,000,000
11/03/2003 Loan proceed J Mishra Ln 532 15,000,000
12/03/2003 Loan proceed Ibrahim Gacwe 8,000,000
12/03/2003 Loan proceed Subas Shas-3005 25,000,000
10/06/1999 ***Loan advance Tfr: Ln-01-300092 15,000,000
25/01/1999 To cash 16,000,000
29/12/2003 Cash withdrawal 3,389,743
29/12/2003 Cash withdrawal 6,462,429
29/12/2003 Cash withdrawal 7,119,805
29/12/2003 Cash withdrawal 10,882,629
12/03/2003 Cash withdrawal 11,000,000
11/03/2003 Cash withdrawal 14,500,000

Transacting business in cash throughout the history of the account is considered unusual. We
recommend that further investigations are carried out.

PricewaterhouseCoopers Project Fabio 28

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 A review of the sundry creditors account however shows entries described as reversals for some of
these transactions. These ‘reversals’ however are not reflected on the Sailesh account pointing to
the possibility that the descriptions are misleading.

The table below contains examples of such entries in the Sailesh Prajapati account as traced to the
sundry creditors’ account:

Date Shs Description

29-Dec-2003 24,464,864
These amounts have been traced to the Sailesh Prajapati
30-Dec-2003 16,016,000 account CA 01-000148 as ‘cash withdrawals’.
05-Feb-2004 7,358,000
27-Feb-2004 3,693,562
02-Mar-2004 2,990,625
05-Feb-2004 7,358,000
16-Aprl-2004 4,215,000
28-May-2004 5,072,000
01-Jul-2004 5,358,000
14-Jul-2004 16,811,080
This amount per the Sundry creditors account was Shs
24-Aprl-2004 6,586,000 500,000 less.
This amount per the Sundry creditors account. was Shs 1
26-May-2004 5,658,000 million less at Shs 4,658,000.

5.56.5 Unusual loan accounts Formatted: Bullets and Numbering

5.5.16.5.1 Parmex Limited Formatted: Bullets and Numbering

The company’s account opening forms indicated that the company was incorporated in England.
However, the mailing address was marked as PO Box 25172 Dubai, U.A.E c/o Parmar Gen Trading
Co. The details of the company’s introduction to the bank to facilitate the account opening were not
clear as the forms were simply marked ‘known to the bank’.

During August 2004, the company obtained a loan LN 01-300793 of Shs 23 million. This loan was
repaid within 2 months as per the details in the table below:

Date Transaction Shs Work done

27-Aug-04 Loan proceeds 23,000,000 Advance file requested but not provided.
14-Oct-04 Instalment (4,000,000)
18-Oct-04 Instalment (4,000,000) We traced the debits in the Sundry creditors account
no. SC 01-600000. The credits in the sundry
21-Oct-04 Instalment (4,000,000)
creditors account have ‘cash received’ as the
25-Oct-04 Instalment (4,000,000) description. Both the debits and the credits were on
27-Oct-04 Instalment (4,000,000) the same day.
5-Nov-04 Instalment (3,282,030)

PricewaterhouseCoopers Project Fabio 29

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 We recommend this account for further investigations due to the following reasons:

i) We traced the corresponding entries of the instalment repayments to the sundry creditors
account no. SC 01-600000. This is considered unusual since repayments would either be
cash/cheque deposits or transfers from another of the customer’s accounts.

ii) We traced the movement of the above instalments to the Kingsway Mart Limited account CA
01-000564 from where transfers were made to the Sundry creditors account SC 01-600000.

iii) The unusually speedy repayments of the loan raise queries as to the source of the cash since
loans are generally repaid over a longer period of time. This is especially so if taken in the
context of the credits coming from the sundry creditors account to clear the loan.

iv) The loan agreements and other correspondences with this customer were not made available
to us.

We have also noted that in August 2004, the Parmex current account CA 01-000193 received a
credit of Shs 23 million from the loan account LN 01-300793 discussed above. Within four days of
this receipt, Shs 22.7 million was debited from this account and described as ‘cash paid’. No
supporting documents were made available by the time of writing this report.

We have summarised these transactions in the table below:

Date Transaction Shs Work done

27-Aug-04 Loan proceeds (23,000,000) Received from LN 01-300793

27-Aug-04 Cash paid 6,110,636
30-Aug-04 Cash paid 1,000,000 No supporting documentation
30-Aug-04 Cash paid 7,000,000 were made available.
31-Aug-04 Cash paid 8,569,744

5.66.6 Large transactions and inward and outward telegraphic transfers which are Formatted: Bullets and Numbering
unsupported
We have reviewed the general ledger nostro accounts as well as those recorded in customer
account statements with a view of establishing the nature of large transactions recorded and
ascertaining whether large foreign currency transactions were reported to CBK. From this review, we
noted the following matters:

Formatted: Bullets and Numbering

PricewaterhouseCoopers Project Fabio 30

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 5.6.16.6.1 Crucial Properties Limited
Crucial Properties Limited is a company incorporated in Kenya. As per the documents reviewed, the
company is described as having interest in property business. Although, the company has
maintained bank accounts since January 2001, the account opening forms were dated 24 April 2006.
The mandates to operate the accounts give Humphrey Kariuki as the only signatory.

The board resolutions authorising the company to operate an account at CB was dated 24 April
2006. The resolution referred to A/C CA 01-000300 and CA 01-600067, which are accounts in the
name of Crucial Properties Limited. However, there was no mention of A/C FX 01-400067 and FX
01-400070 which were also in the name of the company, but have since been closed.

5.6.1.16.6.1.1 Crucial Properties Limited - A/C No. FX01-400067 Formatted: Bullets and Numbering

This account was opened and operated in 2001 during which period there was a large credit of Shs
1.9 billion. These funds were then transferred or paid out between January and May 2001. As at the
time of writing this report, supporting documents had not been made available for our review. The
details of these transactions have been captured in the table below:

Since no documentation was availed for these transactions, we could not verify the payments neither
could we confirm that these were reported to CBK. We understand that these documents were lost in
a fire in September 2004

Date Transaction Description Shs Work Done

DR/ (CR)
TT US$ 24,998,785 – Temuco
19 Jan 2001 Foundation (1,949,905,230)
22 Jan 2001 TTFX 1044 37,052,028
26 Jan 2001 Cash Paid 7,878,000 No supporting documentation availed for the
27 Jan 2001 Converted to Shs 7,842,822 transaction
Amount transferred to Crucial Amount transferred to Crucial Property A/C no.
03 Feb 2001 Property A/C no 2 390,000,000 2 (FX 01-400070)
Revaluation of Kenya Shilling to ensure that the
25 April 2001 Revaluation – April 2001 (77.5) 9,602,020 US Dollar equivalent is maintained.
The amount relates to demand drafts issued for
US$ 18,300,000. However, no supporting
documentation availed for the transaction.
10 May 2001 Demand Drafts 1545-1569 1,418,250,001 Please also refer to section 5.6.1.4 below.
Transfer of US$ 700,000 to A/C Transfer of US$ 700,000 to current A/C CA 01-
11 May 2001 CA 01-000300 54,600,000 000300.

5.6.1.26.6.1.2 Crucial Properties Limited A/C 2 – A/C FX 01-400070 Formatted: Bullets and Numbering

This account was opened in February 2001 and operated for 3 weeks after which it became dormant
until its closure in April 2004. The account received a single credit of Shs 390 million from account
Fx 01-400067 (see 5.6.1.1 above).

Within three days of receipt of this cash, Shs 312 million was transferred to a lawyer’s account,
Kariuki Muigua & Co Advocates Client Account 2. (see 5.6.2.2 below).

Since no documentation was availed for these transactions, we could not verify the payments neither
could we confirm that these were reported to CBK.

PricewaterhouseCoopers Project Fabio 31

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 The table below analyses the main transactions in this account:

Date Transaction Description DR/ (CR) Shs Work Done

03 Feb 2001 Amount transferred from A/C 01-400067 (390,000,000) Amount transferred from A/C FX 01-400067
Issue of various demand drafts. However, no
supporting documentation availed for the
03 Feb 2001 Various DDs 21,672,096 transaction.
06 Feb 2001 Transfer to CA 01-000300 3,872,500 Amount transferred to CA 01-000300
Amount transferred to Kariuki Muigua Client
06 Feb 2001 To Kariuki Muigua Client account 312,000,000 A/C No.2 (A/C FX 01-400069)
Sale of US$ 500,000/-. However, no
supporting documentation availed for the
13 Feb 2001 Sale of US$ 500,000 39,000,000 transaction.

5.6.1.36.6.1.3 Crucial Properties Limited A/C 2 – A/C CA -01-000300 Formatted: Bullets and Numbering

This account was opened in February 2001 and turned dormant after May 2001. The credits into this
account seem to have originated from the Shs 1.9 billion account. The table below shows how the
cash was paid out to various parties.

Since no documentation was availed for these transactions, we could not verify the payments neither
could we confirm that these were reported to CBK.

Date Transaction Description Shs Work Done

DR/ (CR)
06 Feb 2001 US$ 50,000 from FX 01-400070 (3,872,500) Amount transferred from CA 01-000300
13 Feb 2001 B/CQ favouring V.K. Constructions 2,500,000 No supporting documents availed to us. We
B/CQ favouring Greencorner understand that these documents were lost in a
13 Feb 2001 Restaurant 3,000,000 fire in September 2004.
13 Feb 2001 B/CQ favouring Wines of the World 35,000,000
This looks like the same transaction in A/C FX
01-400070 but at an exchange rate of US$ 77.50
13 Feb 2001 US$ 500,000 @ 77.50 (38,750,000) instead of US$ 78
19 Feb 2001 Cashed Cheques 7,890,000
19 Feb 2001 DD1486 CXD & Bal 101,746 (7,925,988)
11 May 2001 B/CHQ G K Williams (Various) 24,000,000 No supporting documents availed. We
understand that these documents were lost in a
11 May 2001 B/CHQ Airline Supplies 23,100,000
fire in September 2004.
11 May 2001 B/CHQ Green Corner Restaurant 3,000,000
11 May 2001 B/CHQ Kariuki Muigua 3,000,000
11 May 2001 US$ 700,000 (54,600,000) Transfer of US$ 700,000 from FX 01-400067

We recommend further investigations of these transactions as they are large and unusual and we
could not obtain supporting documents for them.

5.6.1.46.6.1.4 Proceeds from drafts (Accounts FX 01-400087, FX 01-400086 & FX 01-400090) Formatted: Bullets and Numbering

As noted in the preceding paragraphs on the Crucial Properties Limited accounts, some significant
amounts were paid out of these accounts in the form of demand drafts, We did not obtain details of
who the beneficiaries were. However, we have noted that some new accounts were opened and
credited with amounts described as ‘proceeds of draft’ just about 6 months after the demand drafts
totalling Shs 1.4 billion were paid out of the Crucial Properties Limited account No. FX 01-400067.

PricewaterhouseCoopers Project Fabio 32

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 The payments of Shs 1.4 billion in the Crucial Properties account had been described as demand
drafts, ‘DD’s.

We have summarised three such accounts that we identified in the table below. The entries in these
accounts are described as “proceeds from draft” and the amounts are almost equal to some of the
drafts issued against the Crucial Properties account.

Account Date account Amount

Account name credited
No. Credited Shs
Wellen International Ltd 01-400087 07-Nov-2001 69,389,310
Wellen International Ltd 01-400090 10-Dec-2001 160,172,353
Wallance Holdings Limited 01-400086 07-Nov-2001 54,572,546

We note the following in respect of these accounts:

• There are no supporting documents for the transactions as the documents are said to have
been lost in a fire of September 2004.

• These accounts were opened and closed within a short time indicating that they were
operated to achieve some particular purpose;

• The amounts are almost equivalent in value to some individual drafts paid out of the Crucial
Properties Limited account No. FX 01-400067 in May 2001,, although we have not been
able to match them due to lack of supporting documentation.

It is therefore possible that the payments to these accounts relate to the drafts issued out of the
Crucial Properties Limited account. We therefore recommend that these accounts be further
investigated and that other accounts opened and operated around November 2001 be included as
part of these investigations.

5.6.26.6.2 Kariuki Muigua & Co Advocates Formatted: Bullets and Numbering

5.6.2.16.6.2.1 Kariuki Muigua & Co Advocates (Clients a/c) – CA 01-000563 Formatted: Bullets and Numbering

During the months of October and November 2005, this account was unusually active and received
huge credits described as cash.

‘Cash’ received into this account

26-Sep-05 28-Sep-05 29-Sep-05 26-Oct-05

Receipts in Shs 127,000,000 70,000,000 226,000,000 87,000,000

Payments in Shs out of this account as per the customer account statement
Kwikfit Tyres Ltd 40,486,555 21,751,200 79,891,600 28,450,400
Kirkby Tyres Ltd 40,854,700 19,921,100 78,912,400 31,400,000
Yellowstone Ltd 14,465,850 22,720,700 61,306,000 18,175,500

PricewaterhouseCoopers Project Fabio 33

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Yellowstone Enterprises 18,745,300 - - 8,974,600
K/way - - 7,800,000 -
Port Florence Forwarders 4,482,080 - - -
Jubilee Tyres Ltd 7,128,305 - - -

Subtotals 126,162,790 64,393,000 227,910,000 87,000,500

We have noted that during the dates above, there were transactions of similar amounts to the
receipts above in account CA 01-000426 of Kingsway. The transactions may therefore have been
transfers between the two accounts. The supporting documentations were not made available. See
Section 5.6.3.2 below.

5.6.2.26.6.2.2 Kariuki Muigua & Co Clients A/C No. 2 – A/C FX 01-400069 Formatted: Bullets and Numbering

This account was opened, operated and closed within 1 week in February 2001. The main
transaction related to a transfer of Shs 312 million from another account within the bank belonging to
Crucial Properties Limited A/C 2 (See Section 5.6.1.2 of the report above)

Date Transaction Description Shs Work Done

06 Feb 2001 US$ 4m from A/C FX 01-400070 (312,000,000) Amount transferred from A/C FX 01-400070.
12 Feb 2001 Sale of US$ 300,000 to cash 23,400,000 No supporting documents availed. We understand
12 Feb 2001 Sale of US$ 300,000 to cash 23,400,000 that these documents were lost in a fire in
September 2004. We have traced transactions on
the same day that are similar to the Kariuki
13 Feb 2001 Sale of US$ 3,400,000 265,200,000 Muigua & Co Clients a/c CA 01-000091.

As shown above, the amounts received were then paid out within two days. No documentation was
availed in support of these transactions,See Further work in 5.6.2.3 below:

Further investigations are recommended to establish the nature of these transactions.

PricewaterhouseCoopers Project Fabio 34

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
5.6.2.36.6.2.3 Kariuki Muigua & Co Clients A/C – CA 01-000091 Formatted: Bullets and Numbering

This account was opened on 6 August 1998 and is still in operation. We noted transactions on the
same day as those recorded in Section 5.6.2.2 above indicating that funds were withdrawn from
account FX 01-400069. These funds were credited into this account and details are as shown in the
table below:
Date Description DR/ (CR) Shs
12-Feb-01 Sale of USD 300,000 @ 77.80 from FX69 (23,340,000)
12-Feb-01 Sale of USD 300,000 @ 77.85 from FX69 (23,355,000)
12-Feb-01 Cash Withdrawal 7,515,000
12-Feb-01 B/Chq FVG Kariuki Muigua A/C 15,000,000
13-Feb-01 USD 3,400,000 @ Shs 77.50 (263,500,000)
13-Feb-01 Cash Withdrawal 18,125,000
13-Feb-01 B/Chq FVG Kariuki Muigua A/C (3531,3538,3532,3533) 128,000,000
13-Feb-01 B/Chq FVG G K Williams (3536 & 3537) 50,000,000
13-Feb-01 B/Chq FVG Crescent Constructions (3529 & 3530) 80,000,000
B/Chq FVG G K Williams (3661, 3658, 3666, 3663, 3664, 3660, 3665,
22-Feb-01 3659 & 3662)) 90,000,000
22-Feb-01 Cancelled B/Chqs 3531/2/3 (100,000,000)

From the table above, the following can be noted;

• On 12 February 2001, Shs 46,695,000 was received into this account and Shs 22,515,000
was paid out. The following day, 13 February 2001, Shs 263,500,000 was received (equivalent
of US$ 3,400,000) and Shs 276,125,000 paid out;

• The payments noted above comprised the following: Shs 140 million was described as
payments to a GK Williams, Shs 80 million was described as paid to Crescent Constructions;
and Shs 128 million was shown as payments to Kariuki Muigua, out of which Shs 100 million
was reversed on 22 February 2001;

• The description in the Kariuki Muigua & Co Clients A/C No. 2 – A/C FX 01-400069 shows the
debits as if they were sale of currency. This could be misleading and may have been aimed at
concealing the actual transfer from one account to another. There may be a link with the
amounts transferred out of the Crucial Properties Limited account

• The funds that were credited into this account were paid out almost immediately through what
are described in the account as bankers cheques or cash withdrawals.

We recommend further investigations to establish the nature of these transactions, especially on the
two days above.

PricewaterhouseCoopers Project Fabio 35

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 5.6.36.6.3 Kingsway Motors Group Formatted: Bullets and Numbering

Our review of the deposits and advances of the bank showed that a significant portion of the
deposits and advances were to companies associated with the directors of the bank. One such
relationship is Kingsway Motors Limited whose managing director is Manoj Shah, a brother to the
bank’s managing director, Sanjay Shah. Manoj Shah is also a director of the bank.

The activities of the various accounts revealed some unusual transactions for which further
investigations are recommended. We have summarised some of the transactions that we considered
unusual.

5.6.3.16.6.3.1 Kingsway Mart Limited – CA 01-000564 Formatted: Bullets and Numbering

This account had credit turnover of Shs1.8 billion since it was opened on 2 April 2004 to the time the
bank was placed under statutory management on 23 June 2006. A detailed review of the account
shows some high value transactions on certain days. A summary of some of these transactions is
shown below:

Transaction
Date value Shs Type Description
28-Sep-2005 64,393,000 Credit The credits were described as cash received.
26-Oct-2005 88,500,500 Credit The credits were described as cash received.
26-Oct-2005 80,480,000 Debit Shs 65,750,000 described as cash paid while Shs 14,730,000
was a cheque payment
10-Nov-2005 32,750,000 Debit Constituting four debits described as miscellaneous debits
each of Shs 8million.
11-Nov-2005 25,160,000 Credit The credits were described as cash received constituting two
credits of Shs 10 million and another for Shs 5 million.
11-Nov-2005 5,805,100 Debit Constituting one debit described as cash paid
26-Nov-2005 10,000,000 Credit A single credit described as cash received.
13-Dec-2005 8,000,000 Debit Constituting 2 debits described as cash paid, Shs 1million and
Shs 7 million.
14-Dec-2005 11,098,500 Debit Constituting one debit described as cash paid
16-Dec-2005 8,500,000 Credit A single credit described as cash received.

22-Dec-2005 14,500,000 Credit Constituting Shs 7,500,000 ‘cash received’ and the remainder
made of ‘transfers’.
23-Dec-2005 6,195,066 Debit Constituting 2 debits described as cash paid.
23-Dec-2005 15,000,000 Credit Shs 8.5 million described as ‘transfer’, the balance is
described as ‘Kirby Tyres, Shs 4.5 million; and Kwik Fit Tyres,
Shs 2 million.
29-Dec-2005 18,434,400 Credit A single credit described as transfer to K. Muigua.

The transactions above have been considered unusual due to the following:

• There are unusually high cash payments and cash deposits

• Some dates have high deposits and withdrawals such as 26 October 2005.

PricewaterhouseCoopers Project Fabio 36

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
5.6.3.26.6.3.2 Kingsway Tyres Limited – CA 01-000426 Formatted: Bullets and Numbering

This account had credit turnover of Shs 2.9 billion since it was opened on 6 May 2003 to the time the
bank was placed under statutory management on 23 June 2006. A detailed review of the account
shows some high value transactions on certain days. A summary of some of these transactions is
shown below:

Date Transaction Type Description

value Shs
26-Sep-2005 127,000,000 Debit A single debit described as ‘transfer of cheque deposit’
26-Sep-2005 127,269,490 Credit Two entries described as ‘transfers’ of Shs 53.6 million and Shs
73.7 million.
28-Sep-2005 70,000,000 Debit A single debit described as a transfer of cheque deposit.
28-Sep-2005 40,000,000 Credit A single entry described as a loan advance transfer ref: 01-
300971. We traced this credit to the loan account in the name of
Kingsway Tyres Ltd – University Way which was opened on the
same date.
29-Sep-2005 226,000,000 Debit A single debit described as a cheque deposit ref# 2074
29-Sep-2005 227,290,534 Credit Two entries described as ‘transfer’ of Shs 102.6 million and Shs
124.6 million.
30-Sep-2005 9,000,000 Debit A single debit described as a transfer to a/c 01-000012 in the
name of Kingsway Tyres & Automart Limited.
30-Sep-2005 6,300,000 Credit A single credit described as miscellaneous credit.
6-Oct-2005 11,097,000 Debit A single debit described as ‘TTFX 1112 REM’. Documents in
support of telegraphic transfers (TTs) for October 2005 were not
availed for our review by the time of preparing this report.
11-Oct-2005 9,581,000 Debit A single debit described as ‘TTFX 1121 REM’. Documents in
support of telegraphic transfers (TTs) for October 2005 were not
availed for our review by the time of preparing this report..
26-Oct-2005 22,000,000 Debit A single debit described as a cheque deposit ref# 2189.
26-Oct-2005 65,000,000 Debit A single debit described as ‘cash paid’.
26-Oct-2005 22,079,264 Credit A single credit described as a ‘transfer’.
26-Oct-2005 65,725,000 Credit A single credit described as a ‘transfer’.
28-Oct-2005 13,000,000 Credit A single credit described as a ‘trf chq deposit’.
31-Oct-2005 8,173,000 Debit A single debit described as ‘TTFX 1214 REM’. Documents in
support of telegraphic transfers (TTs) for October 2005 were not
availed for our review.
11-Nov-2005 41,119,500 Debit This is made up of two entries: Shs 32.7 million ‘trf cheque deposit’
and Shs 8.3 million ref ‘TTFX 1267 REM’.
11-Nov-2005 5,805,101 Credit A single credit described as cash received.
16-Nov-2005 7,535,000 Debit A single debit described as a ‘transfer’.

These transactions have been considered unusual due to the following:

• There are transactions of almost similar amounts in another account belonging to Kariuki
Muigua & Co. Advocates. This indicates that the transactions described as cash may have
been transfers and not actual cash. See Section 5.6.2.1 for further details.

• The transactions are of very high value in nature and are around the same period (September
and October 2005).

PricewaterhouseCoopers Project Fabio 37

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 • Most of the transactions are described as cash paid/ deposits which is unusual since they are
very high-value transactions to be conducted in cash.

5.6.3.36.6.3.3 Kingsway Tyres & Automart Limited – CA 01-000012 Formatted: Bullets and Numbering

This account was in operation prior to 1 January 1999. The debit turnover for the period 1 January
1999 to 23 June 2006 was Shs 3.9 billion analysed in the table below:

Year Debit turnover Shs

1999 868,378,156
2000 773,876,406
2001 863,564,827
2002 787,460,965
2003 513,041,670
2004 112,510,445
2005 4,226,528
2006 854,073
Total debits 3,923,913,070

The table below shows some transactions that may have been split and therefore recorded as
separate transactions.

Kingsway account CA 01-000012 – unusual transactions

Transaction
Date Type Description
value Shs
27-Feb-2001 11,000,000 Debit Two entries of Shs 5 million and 6 million respectively
described as ‘reversal entry’. There were no corresponding
credits for these amounts in the month of February 2001.
28-Feb-2001 11,519,000 Debit Two entries of Shs 5,019,000 and 6.5 million respectively
described as ‘reversal entry’. There were no corresponding
credits for these amounts in the month of February 2001.
11-April-2001 8,314,697 Debit A single entry described as ‘cash withdrawal’
28-Dec-2001 12,000,000 Credit Constitutes of four cash deposits of Shs 4 million, Shs
3million (twice) and Shs 2 million.
07-Jan-2002 35,419,948 Debit A single entry described as transfer of $447,768+ charges
11-April-2002 13,870,593 Debit Two entries of Shs 6.4 million and 7.4 million respectively
described as cash withdrawal.
30-May-2002 13,800,000 Debit Two entries described as ‘cash withdrawal’ of
Shs 6.4 million and Shs 7.4 million.
02-Aug-2002 21,651,109 Debit A single entry described as transfer of ‘TT 2082405 $
274,621 @ 78.84
09-Oct-2002 8,394,180 Debit A single entry described as transfer of ‘US$ 105,701
Parmex’.
18-Dec-2002 28,000,000 Credit Constitutes of four cash deposits of Shs 10 million, Shs 7
million, Shs 6 million and Shs 5 million.
19-Dec-2002 21,900,000 Credit Constitutes of two entries described as ‘cash deposits’ of

PricewaterhouseCoopers Project Fabio 38

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Transaction
Date Type Description
value Shs
Shs 10 million and Shs 11.9 million.
01-Aug-2003 11,553,773 Debit A single entry described as ‘cash withdrawal’
14-Aug-2003 7,671,500 Debit A single entry described as ‘cash withdrawal’
15-Jan-2004 3,040,000 Debit A single entry described as transfer to ’Manoj Shah Lions
a/c’.
18-Feb-2004 3,837,500 Debit A single entry described as ‘ttfx 0117 rem Parmex part
payment’
20-Feb-2004 3,842,500 Debit A single entry described as ‘ttfx 0117 rem Parmex part
payment’
23-Feb-2004 3,841,500 Debit A single entry described as ‘ttfx 0141 rem Parmex part
payment plus charges’
24-Feb-2004 3,072,000 Debit A single entry described as ‘part payment tt0141 rem
Parmex’
25-Feb-2004 3,072,000 Debit A single entry described as ‘part payment tt0141 rem
Parmex’
27-Feb-2004 3,072,000 Debit A single entry described as ‘balance part payment tt0141
rem Parmex’

The debit turnover levels above appear very high especially given that Kingsway held other accounts
at the bank during this period.

5.6.3.46.6.3.4 Kingsway Tyres Limited – University Way Branch A/C CA 01-700226 Formatted: Bullets and Numbering

Supporting documents for some large foreign currency transactions were not provided by the time of
writing this report. The transactions related to inward and outward telegraphic transfers (TTs) in the
Kingsway Tyres Limited account CA 01-700226. We have summarised in the table below the
transactions as identified from review of the Nostro accounts ledger statements, the daily transaction
journals as well as this Kingsway account.

From the review of this customer account, the following matters were noted:

• An inward TT of GBP 500,000 was received into this account on 25 October 2005;

• On 26 October 2005, there were outward TTs totalling to GBP 500,000. These appear to
have been misreported in the CBK returns, described as a payment by Triton although no
debit was traced to the Triton accounts held in the bank. The funds seem to relate to the TT
received the previous day but declared to CBK as Kingsway loan drawdown.

• On 8 November 2005, an amount of GBP 250,000 was received through the Canara Bank
and an equivalent amount was wired out 3 days later.

For these transactions, we could not confirm whether they had been reported to CBK since the
returns for these days were not made available.

PricewaterhouseCoopers Project Fabio 39

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 A/C Date Transaction GBP Work Done
Description
DR/ (CR)

CA 01-700226 25-Oct-05 Inward (500,000) The money came through Canara Bank, one of CB’s
TT FIT/614 correspondent banks. Since we were not provided with
the inward TT confirmation, we reviewed the
transaction through the daily activity journal.

A corresponding debit was traced to the Canara Bank

general ledger (GL) account A/C 01-710001.
From copies of returns by the bank and obtained from
CBK, Form CBK FXDR, this was described as an
inward TT described as a loan drawdown for Kingsway
Tyres.
CA 01-700226 26-Oct-05 Transfer – 500,000 The daily transaction report for this day (26 October
TTFX 1715 (250k) 2006) and the outward TT files for the quarter ending
TTFX 1716 (100k) December 2005 were not made available to us.
TTFX 1717 (150k)
However, our review of the general ledger Nostro
accounts indicated that there were outward TTs on the
same day adding up to GBP 500,000 broken down
into GBP 100,000, GBP 150,000 and GBP 250,000.
We could not establish who the TTs were remitted to
as the information had not been available by the time
of doing this report.

We traced the Credit to the Canara Bank GL A/C 01-

710001.
From copies of returns obtained from CBK, Form CBK
FXDP, this was reported as an outward TT described
as payment for petroleum products by Triton
Petroleum Co. Ltd.
CA 01-700226 08-Nov-05 Inward (250,000) The money came through Canara Bank as evidenced
TT FIT /653 by a corresponding debit in the Canara Bank GL A/C
01-710001. Since we were not provided with the
inward TT confirmation, we reviewed the daily activity
journal.
From copies of returns obtained from CBK, Form CBK
FXDR, this was an inward TT described as a loan
drawdown for Kingsway Tyres.
CA 01-700226 11-Nov-05 Transfer- 250,000 A corresponding debit was traced to the Canara Bank
TTFX 1734 general ledger (GL) account A/C 01-710001.

We could not establish to whom the TTs were remitted

as the TT files and Customer requests were not made
available for the entire quarter ending 31 December
2005.
From copies of returns by the bank and obtained from
CBK, Form CBK FXDP, this was described as an
outward TT described as payment for petroleum
products by Triton Networks Solutions Ltd.

5.6.46.6.4 American Express Bank, New York - Nostro A/C 01-610000 Formatted: Bullets and Numbering

In our review of transactions carried out by the bank through their correspondent banks, we identified
significant transfers into and out of these accounts. Our efforts to review these transactions were not
successful. This was due to the following:

• The internal documentation for 26 October 2005 during which a lot of large transactions took
place was not provided. The documents missing included the customer instructions, the
telegraphic transfers and the daily transaction journal for 26 October 2005,;

PricewaterhouseCoopers Project Fabio 40

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
• The Nostro bank statements were also not provided and we could therefore obtain external
evidence of the transmission instructions

During the two days in October 2005, we also noted large transfers into and out of one of the
Kingsway Tyres Limited GBP account (See 5.6.3.4 for further details).

The table below shows transactions obtained from the American Express Bank Nostro account in
New York. Some dollar inflows on the 25 October 2005 appear to have been transferred out the
following day.

Date A/C Transaction DR/ (CR) Work Done

Description US$
25 Oct 2005 NO 01-61000 Purchases of 60,000 We were not provided with any documentation relating to
USD these transactions. From copies of returns obtained from
CBK, Form CBK FXDR, this was a purchase of currency
from Bank of Africa Kenya Limited
25 Oct 2005 NO 01-61000 Purchases of 140,000 We were not provided with any documentation relating to
USD these transactions. From copies of returns made to CBK,
Form CBK FXDR, this was a purchase of currency from Fina
Bank Limited
26 Oct 2005 NO 01-61000 Outward TT – (60,000) We were not provided with any documentation relating to
TTFX 1191 these transactions.

We could not establish to whom the TTs were remitted as

the TT files and Customer requests were not available for
the quarter ending 31 December 2005. From copies of
returns made by CB and obtained from CBK, Form CBK
FXDP, this was a TT from Kingsway for import of tyres.
26 Oct 2005 NO 01-61000 Outward TT – (140,000) We were not provided with any documentation relating to
TTFX 1192 these transactions.

We could not establish who the TTs were remitted to as the

TT files and Customer requests were not available for the
quarter ending 31 December 2005. From copies of returns
made by the bank and obtained from CBK, Form CBK
FXDP, this was TT from Kingsway for import of tyres. This
transaction was reported as one together with TTFX 1192
above as US$ 200,000.
02 Dec 2005 NO 01-610000 Inward (1,000,000) We were not provided with any documentation relating to
TTFX 1373 these transactions.
From copies of returns made by CB and obtained from CBK,
Form CBK FXDP, this was a placement with Bank of Africa
although the reference made in the Nostro account
describes the transaction as a TT and not a placement.

We recommend that further investigations be conducted to ensure that the foreign currency transfers
in the last quarter 2005 were appropriate and were reported to the CBK.

PricewaterhouseCoopers Project Fabio 41

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
5.6.56.6.5 Canara Bank Limited - Nostro A/C 01-710001 Formatted: Bullets and Numbering

From our review of the Canara Bank account, we requested but did not obtain details of the sample
indicated in the table below.

Transaction
Date Description GBP Work Done
We were not provided with any documentation relating to
this transaction. From copies of returns made by the bank
26 Sep 2005 TTFX 1693 1,008,548
and obtained from CBK, Form CBK FXDP, this was a TT
by Triton Petroleum for payment of petroleum
We were not provided with any documentation relating to
this transaction.
29 Dec 2005 TTFX 1776 150,000 From copies of returns made by the bank and obtained
from CBK, Form CBK FXDP, this was described as a
payment to Fina Bank as an inter-bank sales
We were not provided with any documentation relating to
this transactions.
From copies of returns made by the bank and obtained
29 Dec 2005 TTFX 1772 230,000 from CBK, Form CBK FXDP, this was a described as a
payment to Fina Bank as an inter-bank sale.
This transaction was declared as part of the TTFX 1776
above and aggregated as GBP 380,000.

We cannot confirm that these transactions are regular and recommend that CBK reviews the returns
for the banks mentioned in these returns, Fina Bank Limited and Bank of Africa Limited to confirm
that the transactions were confirmed by the other banks.

5.76.7 Accounts opened, operated and closed within a short time Formatted: Bullets and Numbering

We noted that some accounts were opened and closed within a very short period. These accounts
appeared to be operated for a specific reason and would be closed immediately that purpose was
achieved. See table below for accounts of this nature.

Accounts opened, operated and closed within a short time

Turnover Date Date

Account No. Type Account name
Shs opened closed
CA Kariuki Muigua & Co, -nil- No transactions
01-000339 Office a/c
01-400069 FX Kariuki Muigua & Co, 312,000,000 06-Feb-01 13-Feb-01
Office a/c
01-000298 CA Crucial Properties 3,900,000 27-01-01 27-01-01
Limited
01-600272 Ca Anuj & Smita Shah US$ 31,223 05-May-06 12-Jun-06
01-400073 FX PIVB 44,995,736.80 24-Aprl-01 25-Jun-01
02-000686 CA Island Forex Bureau 6,760,699.87 07-Aprl-05 22-July-05
Limited
02-800503 CA Island Forex Bureau Euro 14,780.07 27-Jun-05 22-July-05
Limited
01-800098 CA Capricorn S.R.L Euro 79,421.36 7-Feb-03 1-Aprl-04
01-400145 FX Paolo Sattanino 28,705,103.40 16-Dec-03 1-Aprl-04
01-400154 FX Paolo Sattanino 23,455.80 9-Mar-04 1-Aprl-04

PricewaterhouseCoopers Project Fabio 42

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Turnover Date Date
Account No. Type Account name
Shs opened closed
01-400017 FX Parmex Ltd 29,280 21-Jul-99 22-Aug-99
01-400157 FX Africa Spirits Ltd 12,327,562.60 01-Mar-04 2-Aprl-04
01-000737 CA Aua Industria Ltd (Proj. 4,715,039.27 08-Sep-05 17-Oct-05
A/C)
01-600179 CA Kingsway Tyre & US$ 580 20-Aug-04 6-Sep-04
Automart Ltd
01-203781 CD Rahul Dilesh Bid -nil-
01-201488 FD Proudview Investments -nil- No transactions
01-201493 FD Proudview Investments -nil-
01-000626 CA Hotel Sirikwa Limited 62,628,987.95 30-Jul-04 12-Nov-04

We requested for the instructions by the customer to close these accounts but none were made
available to us. The transactions processed in the short period during which the accounts existed are
unusual and we recommend further investigations. See also Section 5.10 for other examples of
accounts operated for a short period.

PricewaterhouseCoopers Project Fabio 43

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
5.86.8 Payments for insurance premiums Formatted: Bullets and Numbering

We noted that there were significant transfers of foreign currency from the Kingsway accounts which
were described as settlement of insurance premiums for the directors and their families. The
documents used to process these payments did not appear to be from the insurance company as we
noted the following:

• The amounts being transferred do not agree with the premium documents supporting the
payments in respect to the premium payable.

• The name of the insurance company was written in short form on what should be official
documents;

• The premium documents were not on the letterhead of the insurance company;

The details of the payments are summarised as below;

From Account; To account Date of GBP Other details/comments

instruction
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 12-Jan-06 9,000 For policy 20012733 - Ashit P Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 17-Jan-06 6,500 For policy 20004719 -Nitin M Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 17-Jan-06 6,500 For policy 20004718 - Nitin M Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 17-Jan-06 6,500 For policy 20004715 - Nitin M Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 17-Jan-06 17,000 For policy 20007933 - Manish R Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 19-Jan-06 8,500 For policy 20004935 - Manoj R Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 19-Jan-06 8,500 For policy 20004950 - Manoj R Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 19-Jan-06 8,500 For policy 20004942 - Manoj R Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 23-Jan-06 12,000 For policy 20006851- Sanjay R Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 23-Jan-06 12,000 For policy 20006829 - Sanjay R Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 27-Jan-06 17,000 For policy 20007927 - Manish R Shah
Kingsway Tyres Ltd Lcl Int Life Ass Com Ltd 27-Jan-06 17,000 For policy 20007932 - Manish R Shah

We have included the instructions as Appendix H.

5.96.9 Accounts operated outside their mandates Formatted: Bullets and Numbering

We noted that some accounts were operated without proper mandates. Instances were noted where
instructions were received from individuals other than those who are recorded in the system as the
proper signatories and there were no records indicating that the persons giving the instructions had
any relations to those accounts.

A review of the daily transaction journals showed that on 25 May 2006, Shs 2 million was paid out to
Monia Posti from the account of Italian Styles Limited (A/C 01-000249). The support for this
transaction was an e-mail correspondence from the CB Mega branch manager to the Operations
manager indicating that the amount had been paid out in cash. This indicates that the account
mandates were ignored and there is no evidence that the customer actually received the cash.

PricewaterhouseCoopers Project Fabio 44

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Examples of other accounts operated outside the mandates on the system are shown below:

Account Account name Signatories per the Source of instructions

system
CA 01-000085 Nakumatt Holdings Ltd At least two signatories A Shs 6 million cheque dated 31-Dec-2004
signed singly by Atulkumar M Shah.
CA 01-600013 Mehraz Ehsani Mehraz Ehsani JA Duchac
Mehraz Ehsani
CA 01-600061 Mehraz Ehsani See Appendix I
SB 01-100618 Khatib Ashraf No mandates on system
The mandates on the system assist the
CA 01-600198 Faranak & Hamed Ehsani No mandates on system
bank officials to transact business with their
CA 01-000300 Crucial Properties Limited No mandates on system customers in the various branches. Failure
No mandates on system to have these therefore renders such
CA 01-600067 Crucial Properties Limited operations risky and open to abuse.
CA 01-600070 Crucial Properties Limited No mandates on system

CA 01-000298 Crucial Properties Limited No mandates on system

CA 01-301125 Solutions General No mandates on system

CA 01-600272 Anuj & Smita Shah No mandates on system

CA 05-000014 Cashline Forex Bureau No mandates on system

5.106.10 Alterations to customer instructions Formatted: Bullets and Numbering

We have, during the course of our investigations come across numerous cheques whose details
have been altered on the face without being counter-signed. The changes made on the cheques had
the potential impact of making the cheques invalid. However, all these changes were accepted by
the bank and the transactions processed through the customer accounts. The alterations made
related to ‘blacking out’ the name of the drawer and replacing it with another hand-written name.

Once the details of the drawer have been altered, the account number of the customer would also be
blacked out and the new account number handwritten. We consider these alterations irregular.

Cheque Account Number Name of the Cheque issued by

No original drawer

120549 Deleted on the face Daewoo Motors Account debited is CA – 426

of the cheque International Limited Amount paid to cash is Shs 10k
01-000364 Cheque issued 5 May 2006.

120533 Deleted on the face Daewoo Motors Kingsway Mart Limited. CA – 795.
of the cheque International Limited Amount of Shs 2,000.
01-000482 Instructions on the cheque are to ‘pay
cash’.
004617 Deleted on the face Ketty Tours Travel & Cheque issued by Hon. Ndambuki to
of the cheque Safaris Limited self and signed by himself.
01-000482 Amount of Shs 350,000
004611 Deleted on the face Ketty Tours Travel & Cheque issued by Hon. Ndambuki to
of the cheque Safaris Limited self and signed by himself.
01-000482 Amount of Shs 100,000 paid as cash.
The cheque was not signed. On the

PricewaterhouseCoopers Project Fabio 45

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
Cheque Account Number Name of the Cheque issued by
No original drawer

back of the cheque, noted as “paid to

mama Macharia”.
004616 Deleted on the face Ketty Tours Travel & Name of drawer changed to Kilimani
of the cheque Safaris Limited Motors limited.
01-000482 Paying account is CA – 830
000419 Deleted on the face Phones Direct Name of drawer changed to Kingsway
of the cheque Mart.
Amount of Shs 2,000 paid as cash.
000418 Deleted on the face Phones Direct Name of drawer changed to Kingsway
of the cheque Mart.
Amount of Shs 15,000 paid as cash.
144908 Deleted on the face Deleted Payment of Shs 5 million cash to
of the cheque Panorama Imports. The cheque was
not signed and was therefore honoured
outside the operating mandates of the
account.
144909 Deleted on the face Deleted Payment of Shs 3.4 million cash to
of the cheque Panorama Imports. The cheque was
not signed and was therefore honoured
outside the operating mandates of the
account.
144910 Deleted on the face Deleted Payment of Shs 2 million cash to
of the cheque Tasara Forwarders. The cheque was
not signed and was therefore honoured
outside the operating mandates of the
account.

Other examples where we could not identify the original cheque number are as below;

Dated New owner/ A/c no. Former A/c Name Shs Payee
28-Jul-05 Yellowstone Enterprises/CA 412 Dobbin Enterprises 143,613 Cash
28-Jul-05 Sounion Enterprises/ CA 566 Dobbin Enterprises 450,000 Aum Apparels
31-Dec-04 Creative Innovations Ltd/CA 206 Pacific Ace Ltd 200,000 Cash
31-Dec-04 Mbwanji Millers/CA 367 Pacific Ace Ltd 190,000 Cash
31-Dec-04 Gideon Ndambuki/ CA 384 Pacific Ace Ltd 70,000 Self
31-Dec-04 Parker Radio Hse/ CA 624 Pacific Ace Ltd 214,450 Cash
25-Feb-05 Kingway Mart/ CA 564 B S Mohindra & Co 7,000,300 Cash
12-Oct-04 William K. Gitau/ CA 44 Sunmatt Ltd 1,000,000 Esther N. Gitau
30-Jul-04 Kustron (K) Ltd/CA 131 CA 1309 600,000 Cash

PricewaterhouseCoopers Project Fabio 46

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
5.116.11 Foreign currency accounts maintained in Kenya Shillings Formatted: Bullets and Numbering

The bank maintained various types of accounts. Once such account type related to accounts
denoted as FX 01-4xxxxx. As of 23 June 2006, there were no accounts denoted in this manner. Our
review revealed the following peculiarities in the way these accounts were operated:

• From the samples reviewed, the accounts denoted FX 01-4xxxxx existing as at 1 April 2004
were all closed on that date;

• These accounts were reported in Kenya Shillings but the transactions were recorded in
various foreign currencies;

• There were revaluation gains/ losses posted into these accounts periodically;

• Most of the transactions on these accounts were described as cash transactions.

The table below shows examples of these accounts:

Account name Account No. Turnover in Shs Date of opening Date of closure
Paolo Sattanino 01-400145 28,705,103 16-Dec-2003 01-Aprl-2004
Paolo Sattanino 01-400006 68,819,192 31-Mar-1999 01-Aprl-2004
Paolo Sattanino 01-400154 23,456 9-Mar-2004 01-Aprl-2004
Capricon SRL 01-400093 53,230,397 29-Jan-2002 31-Dec-2003
Capricon SRL 01-400098 136,961,850 25-Feb-2002 31-Dec-2003
Maniben Meghji Shah 01-400091 1,659,137 28-Dec-2001 28-Jan-2002
Triton Petroleum Ltd 01-400092 867,624,417 29-Dec-2001 01-Aprl-2004
Anjum Chaudry 01-400108 28,992,622 29-Aug-2002 01-Aprl-2004
Kenya Catermart Ltd 01-400142 14,095,678 16-Sep-2003 01-Aprl-2004
Jitendra Shah & Mrs Surbhi
01-400158 1,570,000 23-Mar-2004 01-Aprl-2004
Shah
Amar J Shah 01-400159 1,552,000 30-Mar-2004 01-Aprl-2004
Mrs Surbhi Shah 01-400160 1,552,000 30-Mar-2004 01-Aprl-2004
Amar J Shah 01-400161 1,552,000 30-Mar-2004 01-Aprl-2004
Mrs Surbhi Shah 01-400162 1,552,000 30-Mar-2004 01-Aprl-2004
Wellen International Ltd 01-400087 69,389,310 07-Nov-2001 08-Nov-2001
Wellen International Ltd 01-400090 160,172,353 10-Dec-2001 21-Jul-2003
Wallance Holdings Limited 01-400086 54,572,546 07-Nov-2001 08-Nov-2001
P.I.V.B 01-400073 44,995,737 24-Apr-2001 25-Jun-2001
Hamed & Mehraz Ehsani 01-400024 6,223,560 10-Oct-1999 01-Apr-2004
Africa Spirit Limited 01-400157 12,327,562 01-Mar-2004 02-Apr-2004
Newcall Technologies Ltd 01-400001 51,251,171 31-Mar-1999 16-Apr-2003
J D J Malde 01-400030 5,473,175 04-Feb-2000 10-Mar-2000
J D J Malde 01-400031 51,652,714 16-Feb-2000 25-Sep-2001
Nakumatt Investments 01-400046 87,415,000 12-Jun-2000 27-Jul-2000
Mr & Mrs Nathwani 01-400060 34,732,000 27-Sep-2000 13-Oct-2000
Mr & Mrs Nathwani 01-400062 3,697,500 05-Oct-2000 13-Oct-2000
Mr & Mrs Nathwani 01-400063 39,936,919 13-Oct-2000 23-Jan-2001

PricewaterhouseCoopers Project Fabio 47

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Account name Account No. Turnover in Shs Date of opening Date of closure
Mr & Mrs Nathwani 01-400064 3,967,500 13-Oct-2000 26-Oct-2000
L Nathwani 01-400065 27,047,424 24-Oct-2000 23-Jan-2001
Kings Investments Ltd 01-400029 17,006,441 31-Jan-2000 07-Feb-2000
Kingsway Investments 01-400037 40,997,221 07-Mar-2000 01-Apr-2004

5.126.12 Matters noted on review of fixed and call deposits Formatted: Bullets and Numbering

5.12.16.12.1 Fixed deposit accounts with debit balances Formatted: Bullets and Numbering

A review of the history of the bank’s fixed deposit accounts indicates that the running balances of
some of the accounts were in debit, which is unusual. We also noted that the roll-over details of the
deposits appeared unusual since the entire deposits were being credited to the account repeatedly
without being retired. It is not clear whether cash was actually received each time the account was
credited. Interest was being credited to these accounts even where their status was in debit.

These unusual scenarios point to the possibility that the deposits may be inaccurate, incomplete, or
may not actually exist. It is also possible that such debit balances may have been created to facilitate
payments to other accounts or out of the bank. The accounts having this peculiarity mainly relate to
directors of the bank and other related companies.

We have summarised some of the accounts which operated as debit balances below. Most of these
accounts were eventually turned into credit balances by 23 June 2006.

These accounts need to be investigated to establish the following:

• Why the opening balances were in debit and when these debit balances arose;

• Why the accounts showed repetitive deposits renewals without the maturing deposits being
retired;

• Why, unlike other fixed deposit accounts where a new account is created to facilitate a
rollover of a matured deposit, no new accounts were opened for these accounts.

PricewaterhouseCoopers Project Fabio 48

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
Fixed and call deposits that operated with debit balances

Type of Debit balance

Customer Name A/c no.
Account (1 Jan 2003) Shs
FD Sanjay R Shah 01-205196 70,984,029
FD Sanjay R Shah 01-205534 33,623,299
FD Manoj R Shah 01-205905 37,502,980
CD Nakumatt Holdings Limited 01-206626 642,760
CD R.Z. Haria 01-205966 1,768,618
CD R.Z. Haria 01-205968 2,683,684
FD Mina B. Shah 01-205320 15,988,656
FD Mina B. Shah 01-205273 44,308,051
FD Miss Shamim Ehsani & Mr Ankur Shah 01-206391 5,633,774
FD Mr Ankur Shah & Miss Shamim Ehsani 01-206393 4,418,794
FD Mr Ankur Shah & Miss Shamim Ehsani 01-207082 2,711,918
FD Mr Ankur Shah & Mr Homan Ehsani 01-207081 2,169,534
FD Mr Neel Shah & Miss Shamim Ehsani 01-206389 7,608,493
FD Mr Neel Shah & Miss Shamim Ehsani 01-206941 5,967,500
FD Mr Neel Shah & Mr Homan Ehsani 01-207083 2,169,534
FD Mr. & Mrs Arsalan Laloui 01-205290 6,305,198
FD Mrs. Paniben D. Shah & Chandulal D. 01-206874 3,229,500
FD Mrs. Paniben D. Shah & Chandulal D. Shah 01-206910 91,502
FD Mrs. Paniben D. Shah & Chandulal D. Shah 01-207013 69,972
FD Mrs. Paniben D. Shah & Chandulal D. Shah 01-207088 60,230
FD Mrs. Paniben Dharamshi Shah Chandulal 01-206875 3,855,260
Dh
FD Mrs. Suru & Nadeem Sadiq 01-205332 22,021,677
FD Mrudula S Shah 01-206073 2,246,140
FD Mrudula S Shah 01-206564 3,273,060
FD Mrudula S Shah 01-206737 939,402
FD Mrudula S Shah 01-206816 2,163,166
FD Mrudula S Shah 01-207026 2,246,140
FD Mwauco Limited 01-205486 387,695
FD Nakumatt Investments Ltd 01-206549 168,208,891
FD Narmadaben M Shah 01-205518 38,850,508
FD Nisha S Raishi 01-205155 825,299
FD Nisha S Raishi 01-205156 4,238,223
FD Nisha S Raishi 01-205191 7,620,705
FD Nisha S Raishi 01-205218 1,329,870
FD Nisha S Raishi 01-205593 9,683,223
TOTAL 515,827,285

Formatted: Bullets and Numbering

PricewaterhouseCoopers Project Fabio 49

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
5.12.26.12.2 Fixed and call deposit accounts operated and closed without being credited with interest
Whereas fixed deposits are ordinarily interest-earning, we noted that some accounts were operated
and closed without any interest being credited into them. This would indicate possibilities that not all
interest expenses incurred by the bank have been recorded in the past. In addition, the account may
have been used for a purpose other than as fixed deposits.

Type of
A/c no. Customer Name Comment
Account
FD 01-300007 Dalbit Petroleum Limited Closed in September 2004
FD 01-300008 Dalbit Petroleum Limited Closed in April 2005
CD 01-207181 Creative Innovations Limited Closed in October 2005
FD 01-300006 Antony A Kegode No interest since August 2004
CD 01-206954 Anandi Vipin Shah No interest since March 2005
No interest has been credited since
CD 01-206955 Anandi Vipin Shah
March 2005

PricewaterhouseCoopers Project Fabio 50

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Formatted: Bullets and Numbering
67 Other accounts with unusual transactions
6.17.1 Creative Innovations Limited
The shareholders of Creative Innovations Limited are Sailesh K Shah (who is a director of the
company together with Kamal R Shah) and Kingsway Investments Limited. Creative Innovations
Limited is therefore related to the Kingsway Group.

During our review of the accounts operated by Creative Innovations at CB, we have noted the
matters below which may require further investigation:

• Transfers made to Paolo Sattanino account. See Section 5.2.2

• We noted possible splitting of accounts where there were several foreign currency payments
made to PIL K Limited; See Appendix III;

• Transfers made to Capricorn SRL account. See Appendix V.

The Creative Innovations account receives most of its credits from the Nakumatt Holdings account
CA 01-000085. In 2003, over Shs 136 million was received while Shs 212 million was received in
2004 and Shs 641 million between 1 January 2005 and 23 June 2006.

Nakumatt’s involvement with Creative Innovations and ultimately Paolo Sattanino, whose
transactions appear unusual / irregular, needs to be investigated.

6.27.2 Abdul Qadir Alladina and Mohammed Yusuf – CA 07-600807 Formatted: Bullets and Numbering

In February 2006, a US dollar account was opened by Mr Abdul Quadir Alladina and Mr Mohamed
Yusuf. The account opening forms indicated the account holders were pensioners, There was an
inward telegraphic transfer (TT) of USD 187,392 on 06 March 2006. The TT reference was 167.

On 6 April 2006, a TT (Ref: TTFX 664) of USD 185,000 was transferred through the Amex Nostro
A/C to Deutsche Bank Trust Company for the credit of Paramount Universal Bank. The further credit
was for Mr Alladina Abdul Quadir, Paramount Bank Westlands Branch. See Appendix K.

There have been very few other transactions in this account subsequently. We recommend further
investigations to establish the nature of these transactions.

Formatted: Bullets and Numbering

PricewaterhouseCoopers Project Fabio 51

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
6.37.3 Round sum transactions
We have noted accounts whose history of transactions show only round sum transactions. This is
most unexpected of a trading account and the transactions may therefore not have any commercial
rationale. Examples of such accounts are:

Account No. Account name

01-600006 Paolo Sattanino
01-000012 Kingsway Tyres & Automart Limited
01-000563 Kariuki Muigua & Co Advocates – Client account
01-000148 Sailesh Prajapati
01-000352 Triton Petroleum Limited
01-000022 Greenhills Investments Limited

Further examples of such transactions have been included under Section 5. We recommend that
further investigations be carried out to establish the nature of these transactions.

6.47.4 Triton Petroleum Company Limited A/C no. 01-000352 Formatted: Bullets and Numbering

We noted various large transfers to Sonal Devani’s accounts (various fixed deposits) from the Triton
Petroleum account. We requested for but were not provided with the account opening forms for the
Sonal Devani accounts for our review. We also noted that there were no picture and signature
images of the customer in the bank’s core operating system Equinox.

For the fixed deposits, we did not obtain any evidence that these were supported by authorisation
from the customer. We have listed some of these transfers below:

Date A/C Transaction Shs Work Done

Description
DR/ (Cr)
Amount transferred from Triton Petroleum
Company Limited A/C 01-000352 on the same
19 Oct 2005 FD 01-207187 Transfer (20,000,000) day.
Amount transferred from Triton Petroleum
Transfer from A/C Company Limited A/C 01-000352 on the same
27 Dec 2005 FD 01-207254 01-000352 (10,000,000) day.
Amount transferred from Triton Petroleum
Transfer from A/C Company Limited A/C 01-000352 on the same
27 Dec 2005 FD 01-207255 01-000352 (10,000,000) day.
Amount transferred from Triton Petroleum
Transfer from A/C Company Limited A/C 01-000352 on the same
27 Dec 2005 FD 01-207256 01-000352 (10,000,000) day.
Amount transferred from Triton Petroleum
Transfer from A/C Company Limited A/C 01-000352 on the same
27 Dec 2005 FD 01-207257 01-000352 (10,000,000) day.
Amount transferred from Triton Petroleum
Transfer from A/C Company Limited A/C 01-000352 on the same
27 Dec 2005 FD 01-207258 01-000352 (10,000,000) day.
Amount transferred from Triton Petroleum
Company Limited A/C 01-000352 on the same
28 Dec 2005 FD 01-207260 Opening Deposits (7,263,950) day.
Amount transferred from Triton Petroleum
Company Limited A/C 01-000352 on the same
28 Dec 2005 FD 01-207261 Opening Deposits (8,810,200) day.

PricewaterhouseCoopers Project Fabio 52

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 Date A/C Transaction Shs Work Done
Description
Amount transferred from Triton Petroleum
Company Limited A/C 01-000352 on the same
28 Dec 2005 FD 01-207262 Opening Deposits (8,925,850) day.
No supporting documentation was provided for
this transfer.
However, we noted that the Shs 124.7 million
was paid out from the from the Triton
16 Jan 2006 FD 01-207285 Opening Balance (125,000,000) Petroleum Company Limited A/C 01-000352

We recommend that further investigations be carried out on the nature and authenticity of
transactions in this account.

6.57.5 Accounts with no entry since their opening Formatted: Bullets and Numbering

We noted accounts which reflect no transactions’ history since they were opened. We have
summarised in the table below some of these accounts

Account No. Type Account name

01-000339 CA Kariuki Muigua & Co – Office account
01-100575 SB Benice Mburu
01-201488 FD Proudview Investments
01-201493 FD Proudview Investments
01-400079 FX Nakumatt Holdings Limited
01-400080 FX Nakumatt Holdings Limited
01-400081 FX Nakumatt Holdings Limited
01-400082 FX Nakumatt Holdings Limited

The matters about these accounts that we considered unusual were:

• The accounts above include fixed deposits, which should only be opened once the bank has
received a customer deposit receipt. Other accounts are of type FX which have been found to
be unusual as discussed under Section 5.

• We were not provided with the customer instructions for the opening of these accounts;

• The accounts are in the names of accounts that have been identified for other unusual
transactions;

PricewaterhouseCoopers Project Fabio 53

Report to the Statutory Manager, Charterhouse Bank “Under Statutory Management”
 APPENDIX 1

ADVANCES, CREDIT FACILITES, GUARANTEES AND/OR LIABILITIES TO EMPLOYEES,

MANAGERS, DIRECTORS, SHAREHOLDERS AND ASSOCIATES
(BANKING ACT SEC. 10 & CBK/PG/07, 3.1)
(BANKING ACT SEC. 11 (1) (f) & CBK/PG/07, 3.2)

Account Name A/C No. Balance at Association Relationship %age of

23.06.06 core
Shs capital
Creative 01- Director/
Innovations Ltd 800842 15,102,210 Sanjay Shah Shareholder
Creative 01- Director/
Innovations Ltd 800848 1,291,499 Sanjay Shah Shareholder
Creative 01- Director/
Innovations Ltd 800849 1,291,498 Sanjay Shah Shareholder
Creative 01- Director/
Innovations Ltd 800850 15,103,875 Sanjay Shah Shareholder
Creative 01- Director/
Innovations Ltd 000009 64,987,278 Sanjay Shah Shareholder
01- Director/
Hameco Ltd 000014 1,954,613 Sanjay Shah Shareholder
01- Director/
Hameco Ltd 301113 230,400 Sanjay Shah Shareholder
01- Director/
Hameco Ltd 301060 12,986,326 Sanjay Shah Shareholder
Nu Metro (Kenya) 01- Sanjay, Manoj, Director/
Ltd 301028 11,526,936 Mehraz & Hamed Shareholder
Nu Metro (Kenya) 03- Sanjay, Manoj, Director/
Ltd 000046 4,693,469 Mehraz & Hamed Shareholder
Cottex 01- Director/
Manufacturers 000005 2,656,272 Sanjay Shah Shareholder
01- Director/
M. R. & S. R. Shah 000002 2,249,992 Sanjay Shah, Manoj Shareholder
Jamachar (Kenya) 01- Manoj Shah, Nitin
Ltd 300975 20,994,302 Shah Director
Jamachar (Kenya) 01- Manoj Shah, Nitin
Ltd 301084 4,624,187 Shah Director
Jamachar (Kenya) 01- Manoj Shah, Nitin
Ltd 000156 6,879,712 Shah Director
Kings 01- Manoj Shah, Nitin
Investments Ltd. 300685 2,000,000 shah Director
Kingsway Tyres 01- Director/
Ltd 000761 313,846 Manoj, Nitin & Kamal Shareholder
Kingsway Tyres 01- Director/
Ltd 000109 54,942 Manoj, Nitin & Kamal Shareholder
Kingsway Tyres 01- Director/
Ltd 000795 3,183,500 Manoj, Nitin & Kamal Shareholder
Kingsway Tyres 01- Director/
Ltd 000426 51,644,749 Manoj, Nitin & Kamal Shareholder
Kingsway Tyres 01- Director/
Ltd 300971 16,350,015 Manoj, Nitin & Kamal Shareholder
Sub-Total 240,119,621 %ge to Core Capital 40.5%
01-
P. J. Mwangi 300688 2,103,220 Charterhouse Bank Member of Staff
Grand Total 242,222,841 %ge to Core Capital 40.8%
Core capital at 31 March 2006 593,069,000
 APPENDIX 2

SECURITY STATUS OF ADVANCES, CREDIT FACILITIES, GUARANTEES, AND

LIABILITIES TO EMPLOYEES, MANAGERS, DIRECTORS, SHAREHOLDERS AND
ASSOCIATES
(BANKING ACT SEC. 11 (1) (c & d) & CBK/PG/07, 3.2
−
A/C Account Amount Charge / Bank Board
Type Name A/C No. (KShs) Relationship* Security Valuation registration Agreements Resolution
LN Greenhills 01-300972 35,000,001 Hamed Ehsani, Titles for None Not effected Forms have Signed in
Investments Mehraz Ehsani Nbi/Blk91/133 been signed Blank
Ltd. & 132 in Amili in blank
Limited
LN Kamal 01-300684 1,000,000 Kamal Shah Acc 01-206374 Ok - Call Forms have None
Properties Ltd rcpt 7489 1,149,660 deposits been signed
receipts in blank
held
CA Kamal 01-000312 441,000 Kamal Shah Acc 01-206374 Ok - Call Forms have None
Properties Ltd rcpt 7489 1,149,660 deposits been signed
receipts in blank
held
LN Jamachar 01-300975 20,994,302 Manoj Shah, None None None Forms have Duly signed
(Kenya) Ltd Nitin Shah been signed and dated
in blank
LN Jamachar 01-301084 4,624,187 Manoj Shah, None None None Forms have Duly signed
(Kenya) Ltd Nitin Shah been signed and dated
in blank
CA Jamachar 01-000156 6,879,712 Manoj Shah, None None None Forms have Duly signed
Kenya (Fuchs Nitin Shah been signed and dated
Oil) in blank
LN Kings 01-300685 2,000,000 Manoj Shah, Acc 01-206375 None Forms have None
Investments Nitin shah rcpt 7488 2,299,320 been signed
Ltd. in blank
CA Kingsway 01-000761 313,846 Manoj Shah, FD and CD 73,926,646 Ok - Call Forms have Duly signed
Tyres Limited Nitin Shah, accounts deposits been signed and dated
– Eldoret Kamal Shah amounting to receipts in blank
73,926,646 held
CA Kingsway 01-000109 54,941 Manoj Shah, FD and CD 73,926,646 Ok - Call Forms have Duly signed
Tyres Nitin Shah, accounts deposits been signed and dated
Limited(Funzi Kamal Shah amounting to receipts in blank
Rd) 73,926,646 held
CA Kingsway 01-000795 3,183,499 Manoj Shah, FD and CD 73,926,646 Ok - Call Forms have Duly signed
Tyres Ltd- Nitin Shah, accounts deposits been signed and dated
Recovery A/C Kamal Shah amounting to receipts in blank
73,926,646 held
CA Kingsway 01-000426 51,644,748 Manoj Shah, FD and CD 73,926,646 Ok - Call Forms have Duly signed
Tyres Nitin Shah, accounts deposits been signed and dated
Ltd(University Kamal Shah amounting to receipts in blank
Way) 73,926,646 held
LN KINGSWAY 01-300971 16,350,014 Manoj Shah, FD and CD 73,926,646 Ok - Call Forms have Duly signed
TYRES LTD- Nitin Shah, accounts deposits been signed and dated
University Kamal Shah amounting to receipts in blank
Way Branch 73,926,646 held
A/C Account Amount Charge / Bank Board
Type Name A/C No. (KShs) Relationship* Security Valuation registration Agreements Resolution
CA Fresh and 01-000546 7,572,403 Mrs Prabhu Acc 01-207382 Call Ok - Call Forms have Signed in
Juici Ltd Yogini Krishna rcpt 0986, Acc Deposits of deposits been signed Blank
01-207447 rcpt 1M; receipts in blank
1016, 250k debenture held and
Acc 01-207418 of 5M and debentures
rcpt 1003, 250k gurantee of and
Acc 01-207347 25M guarantees
rcpt 0969, are
Debenture on registered
Coy Assets - C.
105413,
Directors
guarantee
LN P.J. Mwangi 01-300688 2,103,220 Peter Joshua Lease not None Not effected Forms have N/A
Mwangi singed or been signed
registered in blank
LBD Creative 01-800842 15,102,210 Sanjay Shah All Deposit for Not effected Forms have Signed in
Innovations 18,456,507 18,456,507 been signed Blank
Limited Acc 01-205979 in blank
for SR Shah
rcpt 0833
LBD Creative 01-800848 1,291,499 Sanjay Shah Copy of None Not effected Forms have Signed in
Innovations logbook been signed Blank
Limited Toyota station in blank
wagon KAH
621N 1300cc
LBD Creative 01-800849 1,291,498 Sanjay Shah Logbook for None Not effected Forms have Signed in
Innovations AE 100 KAK been signed Blank
Limited 538 1300cc in blank
LBD Creative 01-800850 15,103,875 Sanjay Shah 20M mortgage Ok - Forms have Signed in
Innovations over creative 20,000,000 effected been signed Blank
Limited innovations in blank
assets c. 49962
CA Creative 01-000009 64,987,278 Sanjay Shah Hypothecation Not effected Forms have Signed in
Innovations of assets been signed Blank
Limited in blank
CA Hameco Ltd 01-000014 1,954,613 Sanjay Shah Log book for None Signed Forms have None
KAD 118K Motor been signed
Daewoo Racer vehicle in blank
transfer
forms
HPA Hameco Ltd 01-301113 230,400 Sanjay Shah KAD 307V None Not effected Forms have None
been signed
in blank
LN Hameco Ltd 01-301060 12,986,326 Sanjay Shah See above None Not effected Forms have None
been signed
in blank
LN Nu Metro 01-301028 11,526,936 Sanjay Shah None None None None None
(Kenya) Ltd,
Prestige Plaza
CA Nu Metro 03-000046 4,693,469 Sanjay Shah None None None None None
(Kenya) Ltd,
Prestige Plaza
CA Cottex 01-000005 2,656,272 Sanjay Shah None None None Forms have None
Manufacturers been signed
Ltd in blank
A/C Account Amount Charge / Bank Board
Type Name A/C No. (KShs) Relationship* Security Valuation registration Agreements Resolution
CA M. R. & S. R. 01-000002 2,249,992 Sanjay Shah, Acc 01-205888 Ok - Call Forms have
Shah Manoj rcpt 7186 2,998,619 deposits been signed
receipts in blank
held
LN Nairobi 02-300919 1,899,061 Vipin Shah None None None None None
Mineral Water
Co.Ltd
LN Nairobi 02-300645 38,797,842 Vipin Shah None None None None None
Mineral Water
Co.Ltd
CA Ukay Estates 01-000222 956,360 Vipin Shah, Atul Title for OMV 20M, Ok - Charge Forms have Duly
Ltd shah LR/No. MV 15M effected been signed completed
209/12829 FSV 11M in blank and signed
done in
2001
 APPENDIX 3
RECKLESS AND FRAUDULENT TRANSACTIONS
(BANKING ACT SEC. 11 (1) (h) & CBK/PG/07, 3.2

Nature of Summary of transaction

transaction
Fictitious Deposit A fictitious deposit certificate for Ksh. 10 million, not supported by
funds, was issued to a friend of the managing director in 2000. The
friend filed a suit in the High Court against the bank, under unclear
circumstances, and the Court ordered the bank to honour its “liability”.
This made the bank lose Ksh. 17.22 million, inclusive of interest.

Hotel Sirikwa Out of a cheque of over ksh. 52 million,, in favour of Hotel Sirikwa, a
subject of a court order, ksh. 40 million was hurriedly paid with the
assistance of the bank even before it was cleared, despite the bank
having been served with the court order.

A purported Loan to a A purported loan of $ 60,000 was advanced to Paolo Sattanino’s

foreign company company, Tradex srl. Whereas funds were transmitted to Paolo, no
records of such a loan exist in the bank.
Lions Club of Ethiopia . The documentation relating to the opening of the account was
CA 01-600173 incomplete as there were no resolutions by the trustees (or equivalent)
of Lions Club of Ethiopia to open the account

. GBP 400 was transferred from this account to Miss Priyum Shah
(National Westminster Bank Plc), a daughter of Manoj Shah

. US$ 30,200 was paid from this account in cash to Helen Kadri Bandi -
ID 13370468 on 19 May 2006. The payment instructions were not in
the institution's letterhead but rather comprised an invoice from
Medisel (K) Ltd. On 15 June 2006, another US$ 10,000 was paid to
Eunice Wairimu Wambugu - ID 9256544 without instructions from Lion
Club of Ethiopia.

. A payment of $ 100,000 from the account to pay Medisel (K) Ltd made
against an invoice addressed to Manoj and Ms. Zahida c/o Kingsseay
Tyres & Automart.

Loans to Related Documentation in support of the securities offered for advances to

related parties were incomplete. The amount advanced, instalments
Parties
due, and guarantee indemnities do not bear the names of the borrower,
amounts borrowed, or instalments due where appropriate, Domuments
signed in blank.

Mehraz Ehasani – Letters originating from Mehraz Ehsani to funds against the account
Religious Account executed by one, Janice A. Duchac

Payments for Transfers of foreign currency from the Kingsway accounts which were
Insurance Premiums described as settlement of insurance premiums for the directors and
their families. The amounts transferred did not agree with the premium
documents supporting the payments in respect to the premiums
payable.

Accounts operated Instances were noted where instructions were received from individuals
without proper other than those who are recorded in the system as signatories to the
mandates accounts.
De-Faced Cheques Numerous cheques which, despite being materially de-faced, were
processed, passed, and their monetary transactions posted to
completion. The de-facing entailed “blocking out” the name of the
drawer of the cheque and the account number and replacing the same
with new hand-written names and numbers. Most of the transactions
involving de-faced cheques related to unusual transactions majority

being cash withdrawals.

Triton Petroleum Various large transfers made to personal accounts of one, Sonal
Company Limited A/C Devani’s (various fixed deposits) from the Triton Petroleum account
no. 01-000352 without appropriate authority, There were no account opening forms for
the Sonal Devani accounts.

Instructions to debit There were several e-mail instructions from Paolo Sattanino to debit
unrelated accounts other unrelated clients accounts and to transfer funds to himself.
Sundry Creditors . The bank maintained a sundry creditors account in its general ledger
Account which was used for various kinds of transactions including processing
payments to and from customers’ accounts. Some of these unusual
transactions include the following:

. Loan repayments for a purported loan granted to Parmex Limited,

originated from the Sundry creditors account. There is no evidence for
the source of these funds. Likewise a purported loan account of one,
Sailesh Prajapati received credits described as loan proceeds from
unexplained or unrelated accounts.

. Some transactions described as ‘cash withdrawal’ were also traced to

sundry creditors account.
 APPENDIX 4

NON-DISCLOSED ADVANCES, CREDIT FACILITES, GUARANTEES AND/OR

LIABILITIES TO EMPLOYEES, MANAGERS, DIRECTORS, SHAREHOLDERS AND
ASSOCIATES
(BANKING ACT SEC. 11 (1) (e), (i)

Account Name A/C No. Balance at Association Relationship %age of

23.06.06 core
Shs capital
Creative 01- Director/
Innovations Ltd 800842 15,102,210 Sanjay Shah Shareholder
Creative 01- Director/
Innovations Ltd 800848 1,291,499 Sanjay Shah Shareholder
Creative 01- Director/
Innovations Ltd 800849 1,291,498 Sanjay Shah Shareholder
Creative 01- Director/
Innovations Ltd 800850 15,103,875 Sanjay Shah Shareholder
Creative 01- Director/
Innovations Ltd 000009 64,987,278 Sanjay Shah Shareholder
Nu Me`tro 01- Sanjay, Manoj, Director/
(Kenya) Ltd 301028 11,526,936 Mehraz & Hamed Shareholder
Nu Metro (Kenya) 03- Sanjay, Manoj, Director/
Ltd 000046 4,693,469 Mehraz & Hamed Shareholder
Cottex 01- Director/
Manufacturers 000005 2,656,272 Sanjay Shah Shareholder
01- Director/
M. R. & S. R. Shah 000002 2,249,992 Sanjay Shah, Manoj Shareholder
Jamachar (Kenya) 01- Manoj Shah, Nitin
Ltd 300975 20,994,302 Shah Director
Jamachar (Kenya) 01- Manoj Shah, Nitin
Ltd 301084 4,624,187 Shah Director
Jamachar (Kenya) 01- Manoj Shah, Nitin
Ltd 000156 6,879,712 Shah Director
Kings 01- Manoj Shah, Nitin
Investments Ltd. 300685 2,000,000 shah Director
Total 153,401,230
Core capital at 31 March 2006 593,069,000 Total percentage 25.86%
 APPENDIX 5
PARTICULARS OF SHAREHOLDERS AND DIRECTORS AS REPORTED BY BANK
BANKING ACT SECTION 50 (1)

SHAREHOLDER %GE NAMES O F %GE ULTIMATE %GE

SHAREHOLDING SHAREHOLDERS SHAREHOLDING BENEFICIAL ULTIMATE
IN COMPANY SHAREHOLDER BENEFICIARY

Ciko 21.74 P. Bhadra 50 P. Bhadra 10.87

Investments
Ltd

S. Chio 50 S. Chio 10.87

Seiko 21.74 Sanjay Shah 50 Sanjay Shah 10.87

Investments
Ltd

Kamal Shah 50 Kamal Shah 10.87

Proudview 21.74 M..W. Prabhu 100 M..W. Prabhu 21.74

Investments
Ltd

Foreman 21.74 B. Parmar 100 B. Parmar 21.74

Corpoaration
Ltd

Nakumatt 10 P. Angst 33 P. Angst 3.30

Investements
Ltd

Daniel M. 33 Daniel M. 3.30

Fleming Fleming

Bernadette 33 Bernadette 3.40

Bopp Bopp

Hamed Ehsani 1.52 N.A. 34 Hamed Ehsani 1.52

Mehraz Ehsani 1.52 N.A. N.A. Mehraz Ehsani 1.52

Total 100 N.A. 100

 APPENDIX 6
A TRUST AND OFF-SHORE RELATED COMPANIES
BANKING ACT SECTION 13 (1),(3),(4)

The diagram below is a presentation of off-shore companies, the off-shore trust, the trustees, and
beneficiaries.

21.74% Shareholding 21.74% Shareholding

CHARTERHOUSE BANK LTD

PROUDVIEW INVESTMENTS LTD EPSOM HOLDINGS

FOREMAN CORPORATION
(Registered in British Virgin CORPORATION
(Registered in Belize)
Islands) (Registered in Liechtenstein)

Bearer shares held by

Shares issued in favour of
First Adv. Trust as trustess
of Ram Trust
First Adv Trust as trustees
of Ram Trust
Shares issued in favour
of First Adv Trust as
FIRST ADVISORY TRUST REG. trustees of Ram Trust
(Registered in Liechtenstein)
Trustees of Ram Trust

RAM TRUST

Beneficiaries

BENEFICIARIES
• Sanjay Shah & family – 33⅓%
• Manoj Shah & family – 33⅓%
• Manish Shah & family – 33⅓%

It is therefore noted that through the beneficial ownership of the Rum Trust, the Shah family
owns over 54% of Charterhouse Bank Limited, with Sanjay Shah owning 25.36% of total capital,
in violation of Banking Act Section 13 (1) which restricts ownership by a party to a maximum of
25%.
 APPENDIX 7
PARTICULARS OF DIRCTORSHIP AS REPORTED BY THE BANK
BANKING ACT SECTION 50 (1)

DIRECTOR’S NAME STATUS OTHER DIRECTROSHIPS

MEHRAZ EHSANI NON-EXECUTIVE • GREENHILLS INVESTMENTS LTD

(CHAIRMAN) • HAMECO LIMITED

• MEHRAZ & ASSOCIATES

SANJAY SHAH EXECUTIVE • GENERAL TYRES SALES

(MANAGING • MOTOR TYRE SUPPLIES

DIRECTOR)

HAMED EHSANI NON-EXECUTIVE • GREENHILLS INVESTMENTS LTD

• HAMECO LIMITED

ATULKUMAR M. SHAH NON-EXECUTIVE • NAKUMATT HOLDINGS LTD

• NAKUMATT INVESTMENTS LTD

MANOJ SHAH NON-EXECUTIVE • KINGSWAY TYRES & AUTOMART LTD

• GENERAL TRYE SALES

MANJUNATH W. EXECUTIVE NIL

PRABHU
(GENERAL MANAGER)
 APPENDIX 8
PARTICULARS OF DIRECTORSHIP AS PER INVESTIGATION FINDINGS
BANKING ACT SECTION 50 (1)
 APPENDIX 9
SAMPLE OF UNREPORTED AND MISREPORTED FOREIGN RECIPTS AND PAYMENTS –
GUIDELINES ON FOREIGN EXCHANGE TRANSACTIONS-SECTION 4
DATE NATURE OF AMOUNT COMMENTS
TRANSACTION

02.09.2005 PAYMENT $320,000 Other records obtained from investigations show that
amount was remitted to Barclays Bank PLC London
(TTFX0951) for the account of Parmex Limited – Dollar
Account No. 77681744. Only $ 175,000 was reported.
No documentation to support this transaction.

26.09.2005 PAYMENT $1,340,000 Other records obtained from investigations show that
amount was remitted to American Express Bank
Limited, Singapore, (TTFX1063) for the account of
Sanjay Shah & Others – Account No. 63413, but
misreported as a payment for Triton Petroleum Co. Ltd
for loan repayment. No documentation to support this
transaction.

26.09.2005 PAYMENT $ 961,274.17 Other records obtained from investigations show that
amount was remitted to ABN AMRO BANK, N.V.
(TTFX1051) for the account of Parmex Limited, but
misreported as a payment for Triton Petroleum Co. Ltd
for loan repayment. No documentation to support this
transaction.

26.09.2005 PAYMENT $ 872,259.57 Other records obtained from investigations show that
amount was remitted to ABN AMRO BANK, N.V.
(TTFX1047) for the account of Parmex Limited, but
misreported as a payment for Triton Petroleum Co. Ltd
for loan repayment. No documentation to support this
transaction.

19.10.2005 PAYMENT $200,000 Only $170,000 reported and passed to General

Ledger. Other records obtained from investigations
show that $200,000 was remitted to Unicredit Banca,
Italy (TTFX1152) for the account of Tradex SRL. No
documentation to support this transaction.

26.10.2005 PAYMENT £100,000 Other records show that amount was transferred
through HSBC-London and remitted to SG Hambros
Bank and Trust Ltd: Beneficiary being Epson Holdings
Corporation, of Account No. 13464300, value date
27.10.2005(TTFX1716). No documentation to support
 the underlying transaction.

26.10.2005 PAYMENT $ 60,000 Other records show that amount was remitted to
Unicredit Banca, Italy (TTFX1191) for account of
Tradex S.R.L. Account No. 10166523, being loan from
Charterhouse Bank but no such loan is booked at the
bank and no documentation to support the transaction.

26.10.2005 PAYMENT $140,000 Other records show that amount was remitted to
Barclays Bank PLC, London (TTFX1192) for the
account of Parmex Limited - US Dollar Account No.
77681744, No documentation to support the
transaction.

26.10.2005 PAYMENT £250,000 Other records obtained from investigations show that
amount was remitted to Barclays Bank PLC London
(TTFX1715) for the account of Parmex Limited –
Sterling Account No. 13251934. No documentation to
support this transaction.

26.10.2005 PAYMENT £150,000 Other records obtained from investigations show that
amount was remitted to CitiBank PBG London
(TTFX1717) for the Loan Account No. 305723/001,
beneficiary being Sanjay Shah.

11.11.2005 PAYMENT £250,000 Other records show that amount was remitted to Citi
Bank – London for crediting Sanjay Shah’s loan
Account No. 305723/001, value date
14.11.2005(TTFX1734).No documentation to support
the underlying transaction.

15.11.2005 RECEIPT $749,965.00 Other records show that amount was received via
CitiBank, NA for the account of Themis Investment Ltd
– relating to the procurement of ammunition for Malawi
Defence Force. No documentation to support the
underlying transaction.

th
22.01.2001 to VARIOUS $24,998,785 On 19 Jan. 2001 Crucial Properties Limited received
11.05.2001 PAYMENTS the amount from Temuco Foundation and paid out
various parties in varied amounts, eg $18.578m was
paid as Demand Drafts; $,4.0m was paid to Kariuki
Muigua; about $1.8m was sold to cash and transferred
to various parties.

Note: some significant amounts were paid out of

Crucial Properties accounts in the form of demand
drafts - details of majority of beneficiaries were not
indicated. However, some new accounts were opened
and credited with amounts described as ‘proceeds of
 draft’ just about 6 months after the demand drafts
totalling Shs 1.4 billion were paid out of the Crucial
Properties Limited account No. FX 01-400067. The
payments of Shs 1.4 billion in the Crucial Properties
account had been described as demand drafts, ‘DD’s.

06.02.2001 RECIPTS $4,000,000 Kariuki Muigua received the amount and paid out
various parties including: GK Williams (Shs 140m);
Crescent Construction (Shs 80m); Kariuki Muigua
(bankers cheques of Shs 143 m-out of which Shs 100
million was reversed on 22 February 2001);

07.11.2001& RECEIPTS Demand Wellen International Ltd received in account no. 01-
10.12.2001 Drafts 400087 proceeds of demand drafts equivalent of sh.
Sh.229.5m. 69,389,310; and in account no. 01-400090 equivalent
sh. 160,172,353.

07.11.2001 RECEIPTS Demand Wallance Holdings Limited received in account no. 01-
Drafts 400086 proceeds of demand drafts equivalent of sh.
Sh.54.5m. 54,572,546.
 APPENDIX10
SPLITTING OF FOREING RECEIPTS AND PAYMENTS TO CIRCUMVENT

CBK REPORTING REQUIRMENTS

GUIDELINES ON FOREIGN EXCHANGE TRANSACTIONS, SECTION 4

The table below illustrates some transfers split under instructions from Creative Innovations in January
2005. These were traced to the accounts of Paolo Sattanino; CA 01-800145 and CA 01-600006.

Date Beneficiary US$ Account credited

17-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
18-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
19-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
20-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
21-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
24-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
25-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
26-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
27-Jan-2005 Paolo Sattanino 10,000 CA 01-600006
Total 90,000

Euro
28-Jan-2005 Paolo Sattanino 6,325 CA 01-800145
31-Jan-2005 Paolo Sattanino 6,250 CA 01-800145
01-Feb-2005 Paolo Sattanino 6,425 CA 01-800145
Total 19,000
There were other payments of this nature to Paolo Sattanino from the Kingsway Mart Limited
account CA 01-000564.

Splitting on Creative Innovations Limited account CA 01-000009

The transactions listed below show multiple remittances to a single recipient within a day.

Date Amount Shs Transaction details as shown in the bank statement

21-Jun-
2006 303,138 tt fng PIL (K) Ltd – USD 4,102@73
21-Jun-
2006 976,578 tt fng PIL (K) Ltd – USD 13,197@74

21-Aug-
2003 446,866 ttfx0308678 remitted to Capricorn
Date Amount Shs Transaction details as shown in the bank statement
21-Aug-
2003 455,418 ttfx03080677 remitted to Capricorn

14-Apr-
2005 158,639 USD DD issued fvg PIL K Ltd for 2071/-@76/6
14-Apr-
2005 329,533 USD DD issued fvg PIL K Ltd for 4302/-@76/6
14-Apr-
2005 838,464 USD DD ssued fvg PIL K Ltd for 10946/-@76/6
14-Apr-
2005 1,021,078 USD DD ssued fvg PIL K Ltd for 13330/-@76/6
14-Apr-
2005 1,021,078 USD DD ssued fvg PIL K Ltd for 13330/-@76/6
14-Apr-
2005 1,670,799 USD DD ssued fvg PIL K Ltd for 21812/-@76/6

11-Oct-
2005 353,572 tt fng PIL (K) Ltd – USD 4,778 @ 74.00
11-Oct-
2005 397,972 tt fng PIL (K) Ltd – USD 5,378 @ 74.00
11-Oct-
2005 629,444 tt fng PIL (K) Ltd – USD 8,506 @ 74.00
11-Oct-
2005 747,844 tt fng PIL (K) Ltd – USD 10,106 @ 74.00

19-Oct-
2005 318,283 tt fng PIL (K) Ltd –USD 4,278.00 @ 74.40
19-Oct-
2005 355,483 tt fng PIL (K) Ltd –USD 4,778.00 @ 74.40
19-Oct-
2005 355,483 tt fng PIL (K) Ltd –USD 4,778.00 @ 74.40

28-Oct-
2005 673,844 tt fng PIL (K) Ltd – USD 9,106.00 @ 74.00
28-Oct-
2005 703,444 tt fng PIL (K) Ltd – USD 9,506.00 @ 74.00
28-Oct-
2005 718,244 tt fng PIL (K) Ltd – USD 9,706.00 @ 74.00

2-Dec-2005 185,871 tt fng PIL (K) Ltd – USD 2,505.00 @ 74.20

Date Amount Shs Transaction details as shown in the bank statement
2-Dec-2005 358,386 tt fng PIL (K) Ltd – USD 4,830.00 @ 74.20
2-Dec-2005 684,272 tt fng PIL (K) Ltd – USD 9,222.00 @ 74.20

6-Dec-2005 363,580 tt fng PIL (K) Ltd – USD 4,900.00 @ 74.20

6-Dec-2005 708,610 tt fng PIL (K) Ltd – USD 9,550.00 @ 74.20

7-Dec-2005 190,421 tt fng PIL (K) Ltd – USD 2,575.00 @ 73.95

7-Dec-2005 357,179 tt fng PIL (K) Ltd – USD 4,830.00 @ 73.95

14-Dec-
2005 202,242 tt fng PIL (K) Ltd –USD 2,733.00 @ 74.00
14-Dec-
2005 373,404 tt fng PIL (K) Ltd –USD 5,046.00 @ 74.00
14-Dec-
2005 391,164 tt fng PIL (K) Ltd –USD 5,286.00 @ 74.00

19-Dec-
2005 357,216 tt fng PIL (K) Ltd - USD 4,880.00 @ 73.20
19-Dec-
2005 359,412 tt fng PIL (K) Ltd - USD 4,910.00 @ 73.20
19-Dec-
2005 637,572 tt fng PIL (K) Ltd - USD 8,710.00 @ 73.20
19-Dec-
2005 710,772 tt fng PIL (K) Ltd - USD 9,710.00 @ 73.20
20-Dec-
2005 11,380 tt fng PIL (K) Ltd - USD 156.00 @ 72.95
20-Dec-
2005 540,195 tt fng PIL (K) Ltd - USD 7,405.00 @ 72.95

3-Jan-2006 184,956 tt fng PIl (K) Ltd - USD 2,525.00 @ 73.25

3-Jan-2006 357,460 tt fng PIl (K) Ltd - USD 4,880.00 @ 73.25
3-Jan-2006 364,785 tt fng PIl (K) Ltd - USD 4,980.00 @ 73.25
3-Jan-2006 1,418,853 tt fng PIl (K) Ltd - USD 19,370.00 @ 73.25

11-Jan-
2006 81,365 tt fng PIL (K) Ltd - USD 1,104.00 @ 73.70
11-Jan-
2006 705,917 tt fng PIL (K) Ltd - USD 9,710.00 @ 72.70
Date Amount Shs Transaction details as shown in the bank statement
16-Jan-
2006 356,466 tt fng PIL (K) Ltd - USD 4,910.00 @ 72.60
16-Jan-
2006 364,307 tt fng PIL (K) Ltd - USD 5,018.00 @ 72.60
16-Jan-
2006 364,307 tt fng PIL (K) Ltd - USD 5,018.00 @ 72.60

20-Jan-
2006 318,843 tt fng PIL (K) Ltd - USD 4,410.00 @ 72.30
20-Jan-
2006 354,993 tt fng PIL (K) Ltd - USD 4,910.00 @ 72.30
20-Jan-
2006 364,537 tt fng PIL (K) Ltd - USD 5,042.00 @ 72.30

26-Jan-
2006 313,635 tt fng PIL (K) Ltd USD 4,350.00 @ 72.10
26-Jan-
2006 354,011 tt fng PIL (K) Ltd USD 4,91000 @ 72.10
26-Jan-
2006 702,254 tt fng PIL (K) Ltd USD 9,740.00 @ 72.10

24-Mar-
2006 163,205 tt fng PIL (K) Ltd - USD 2,248.00 @ 72.60
24-Mar-
2006 270,153 tt fng PIL (K) Ltd - USD 3,716.00 @ 72.70
24-Mar-
2006 314,791 tt fng PIL (K) Ltd - USD 4,330.00 @ 72.70
24-Mar-
2006 371,267 tt fng PIL (K) Ltd - USD 5,128.00 @ 72.40

13-Apr-
2006 151,723 tt fng PIL (K) Ltd - USD 2,122.00 @ 71.50
13-Apr-
2006 869,583 tt fng PIL (K) Ltd - USD 12,162.00 @ 71.50

9-May-2006 283,061 tt fng PIL (K) Ltd - USD 3,970.00 @ 71.30

9-May-2006 872,356 tt fng PIL(K) ltd – USD 12235 @71.30

12-Jun-
2006 559,472 tt fng PIL (K) Ltd - USD 7,664.00 @ 73.00
Date Amount Shs Transaction details as shown in the bank statement
12-Jun-
2006 607,536 tt fng PIL (K) Ltd - USD 8,294.00 @ 73.25

21-Jun-
2006 2,223 tt fng PIL (K) Ltd -USD 30.00 @ 74.10
21-Jun-
2006 303,138 tt fng PIL (K) Ltd - USD 4,102.00 @ 73.90
21-Jun-
2006 976,578 tt fng PIL (K) Ltd -USD 13,197.00 @ 74.00

16-Feb-
2004 768,000 transfer to a/c paolo
17-Feb-
2004 766,500 transfer to a/c of paolo
15-Apr-
2004 466,000 transfer to paolo
19-Apr-
2004 470,000 transfer to paolo

22-Apr-
2004 465,000 transfer to Euro a/c of paolo
23-Apr-
2004 467,500 transfer to paolo
27-Apr-
2004 672,979 transfer to Euro a/c of paolo
 APPENDIX11
IRREGULAR FOREIGN LOANS TO PARMEX LIMITED AND TRADEX SRL
GUIDELINES ON FOREIGN EXCHANGE TRANSACTIONS-SECTION 5.2

In August 2004, Parmex Limited obtained a loan LN 01-300793 of Shs 23 million. This loan was repaid
within 2 months as per the details in the table below:
Date Transaction Shs Remarks

27-Aug- Loan proceeds 23,000,000 Advance file not in place –no documentation in
04 relation to this credit faci
14-Oct- Instalment (4,000,000)
04 Debits originated from Sundry creditors account
18-Oct- Instalment (4,000,000) no. SC 01-600000. The credits in the sundry
04 creditors account have ‘cash received’ as the
21-Oct- Instalment (4,000,000) description. Both the debits and the credits were
04 on the same day.
25-Oct- Instalment (4,000,000)
04
27-Oct- Instalment (4,000,000)
04
5-Nov-04 Instalment (3,282,030)
−
It was also noted that in August 2004, the Parmex current account CA 01-000193 received a
credit of Shs 23 million from the loan account LN 01-300793 discussed above. Within four days
of this receipt, Shs 22.7 million was debited from this account and described as ‘cash paid’. No
supporting documents were made available.

A summary of these transactions is presented in the table below:

Date Transaction Shs Work done

Received from LN 01-

27-Aug-04 Loan proceeds (23,000,000)
300793
27-Aug-04 Cash paid 6,110,636
30-Aug-04 Cash paid 1,000,000 No supporting
30-Aug-04 Cash paid 7,000,000 documentation.
31-Aug-04 Cash paid 8,569,744
 APPENDIX12
FOREIGN CURRENCY ACCOUNTS OPERATED IN KENYA SHILLINGS
GUIDELINES ON FOREIGN EXCHANGE TRANSACTIONS-SECTION 6(5)

Examples of these accounts are shown in the table below:

Account Turnover in Date of Date of

Account name
No. Shs opening closure
Paolo Sattanino 01-400145 28,705,103 16-Dec-2003 01-Aprl-2004
Paolo Sattanino 01-400006 68,819,192 31-Mar-1999 01-Aprl-2004
Paolo Sattanino 01-400154 23,456 9-Mar-2004 01-Aprl-2004
Capricon SRL 01-400093 53,230,397 29-Jan-2002 31-Dec-2003
Capricon SRL 01-400098 136,961,850 25-Feb-2002 31-Dec-2003
Maniben Meghji Shah 01-400091 1,659,137 28-Dec-2001 28-Jan-2002
Triton Petroleum Ltd 01-400092 867,624,417 29-Dec-2001 01-Aprl-2004
Anjum Chaudry 01-400108 28,992,622 29-Aug-2002 01-Aprl-2004
Kenya Catermart Ltd 01-400142 14,095,678 16-Sep-2003 01-Aprl-2004
Jitendra Shah & Mrs Surbhi
01-400158 1,570,000 23-Mar-2004 01-Aprl-2004
Shah
Amar J Shah 01-400159 1,552,000 30-Mar-2004 01-Aprl-2004
Mrs Surbhi Shah 01-400160 1,552,000 30-Mar-2004 01-Aprl-2004
Amar J Shah 01-400161 1,552,000 30-Mar-2004 01-Aprl-2004
Mrs Surbhi Shah 01-400162 1,552,000 30-Mar-2004 01-Aprl-2004
Wellen International Ltd 01-400087 69,389,310 07-Nov-2001 08-Nov-2001
Wellen International Ltd 01-400090 160,172,353 10-Dec-2001 21-Jul-2003
Wallance Holdings Limited 01-400086 54,572,546 07-Nov-2001 08-Nov-2001
P.I.V.B 01-400073 44,995,737 24-Apr-2001 25-Jun-2001
Hamed & Mehraz Ehsani 01-400024 6,223,560 10-Oct-1999 01-Apr-2004
Africa Spirit Limited 01-400157 12,327,562 01-Mar-2004 02-Apr-2004
Newcall Technologies Ltd 01-400001 51,251,171 31-Mar-1999 16-Apr-2003
J D J Malde 01-400030 5,473,175 04-Feb-2000 10-Mar-2000
J D J Malde 01-400031 51,652,714 16-Feb-2000 25-Sep-2001
Nakumatt Investments 01-400046 87,415,000 12-Jun-2000 27-Jul-2000
Mr & Mrs Nathwani 01-400060 34,732,000 27-Sep-2000 13-Oct-2000
Mr & Mrs Nathwani 01-400062 3,697,500 05-Oct-2000 13-Oct-2000
Mr & Mrs Nathwani 01-400063 39,936,919 13-Oct-2000 23-Jan-2001
Mr & Mrs Nathwani 01-400064 3,967,500 13-Oct-2000 26-Oct-2000
L Nathwani 01-400065 27,047,424 24-Oct-2000 23-Jan-2001
Kings Investments Ltd 01-400029 17,006,441 31-Jan-2000 07-Feb-2000
Kingsway Investments 01-400037 40,997,221 07-Mar-2000 01-Apr-2004
These accounts were reported in Kenya Shillings but transactions were recorded in various
foreign currencies; There were revaluation gains/ losses posted into these accounts periodically;
Most of the transactions on these accounts were described as cash transactions.
 APPENDIX13
ACCOUNTS WITHOUT ACCOUNT OPENING FORMS
CBK/PG/08

−
Account Title Number of Accounts by Type
Type of Account CA CD FD HPA LBD LN SB Total
A.K Patel Mr 1 - - - - - - 1
Aakshi Sanjay Shah - - 1 - - - 1 2
Aarav Kamal Shah - - 1 - - - - 1
Aarjaa Manish Shah - - 2 - - - 1 3
Aashit Ramesh Shah - - 4 - - - - 4
Aashni & Aakshi Shah - - - - - - 1 1
Aashni Sanjay Shah - - 1 - - - 1 2
Abbas Ehsani - - 6 - - - - 6
Amal Manish Shah - - 2 - - - - 2
Amip Rajendra. Patel & Mr. Rajendra.J. Patel - - 4 - - - - 4
Anaita N Shah - - 1 - - - 1 2
Anandi Vipin Shah - 2 - - - - - 2
Anay Kamal Shah - - 1 - - - - 1
Ankoor Shah - - 1 - - - 2 3
Anthony J. Rodrigues - - 4 - - - - 4
Antony A. Kegode - - 1 - - - - 1
Ashok & Subhash J. Nagda - - - - - - 1 1
Ashok K.K.Gosar & Rashila A.Shah - - - - - - 1 1
Ashok Kapoor & Geeta Ashok K. - - - - - - 1 1
Astral Aviation Ltd - - - - 4 - - 4
Atul Shah & Harsha Shah - - 2 - - - - 2
Atulkumar M Shah 1 - - - - - - 1
Awal Limited - 1 - - - - - 1
Azhar Chaudry - - - - - 2 - 2
Beatrice Sabana - - 1 - - - - 1
Bharat J Shah - - 6 - - - - 6
Brand House Limited 1 - - - - - - 1
Brand Imports Limited - 4 2 - 8 - - 14
Chandulal D Shah & Kunden C Shah - - 2 - - - - 2
Chandulal D. Shah & Paniben D. Shah - - 3 - - - - 3
Consolidated Asphalts Ltd - - - - - 1 - 1
Converters East Africa Ltd - - - - - 2 - 2
Creative Innovations Limited - - - - 4 - - 4
Crucial Properties Ltd Ac1 1 - - - - - - 1
Crucial Properties Ltd(Usd) A/C 2 1 - - - - - - 1
Crucial Properties Ltd-Ksh A/C 2 1 - - - - - - 1
Dalbit Investments Ltd 2 - - - - - - 2
Dalbit Petroleum Ltd 1 4 - - - - - 5
Account Title Number of Accounts by Type
Type of Account CA CD FD HPA LBD LN SB Total
Dimken (K) Ltd 1 - 1 - - - - 2
Discount Cash & Carry - 2 - - - 8 - 10
East African Safari Air - - - - - 1 - 1
Esther Njeri Gitau - 1 - - - - 1 2
F. W Ngatia 2 - - - - - - 2
F.W. Ngatia - - 5 - - - - 5
G.K. Shah - - 21 - - - - 21
Gikandi & Co. Advocates - - - - - 1 - 1
Hamed & Mehraz Ehsani 1 - 5 - - - - 6
Hamed Ehsani - - 1 - - - - 1
Hamed Ehsani & S,R, Shah 1 - - - - - - 1
Hamed Ehsani Uri Account - - 2 - - - - 2
Hans Apparel Ltd - - - - 53 - - 53
Harun International Limited 1 - - - - - - 1
Hinal Ashok Shah - 3 - - - - - 3
Image Motors (K) Ltd - - - - 5 - - 5
J. Shah & B. Chager, P.S. Sehmi, A. Chou 1 - - - - - - 1
J.R. Shah,M.R. Shah & N.Nathwani - 1 - - - - - 1
J.V Barot & Mrs M.J. Barot - - 5 - - - - 5
Jaleh Ehsani Farokhy - - 2 - - - - 2
Jamachar (Kenya) Ltd - - - - - 2 - 2
James Kariuki - - - 2 - - - 2
Jayna Manoj Shah & Manoj R. Shah - 1 3 - - - - 4
John & Anna Ndambuki 1 - - - - - - 1
John Harun 1 - 1 - - - - 2
John Harun Limited - - 1 - - - - 1
Kamal R Shah - - 3 - - - - 3
Kamlesh V Sanghrajka 1 - - - - - - 1
Kariuki Muigua & Co., Clients A/C 1 - - - - - - 1
Kariuki Muigua & Co.-Office A/C 1 - - - - - - 1
Kariuki Muigua David - - - 1 - - - 1
Kasturi Limited 1 - - 3 - 1 - 5
Kempaper Ltd - - - - - 1 - 1
Kenya Hotels Limited 1 - - 1 6 - - 8
Ketan M Shah &/Or Naimisha Shah 1 - - - - - - 1
Ketty Tours Travels & Safaris Ltd 1 - - 1 - - - 2
Kings Chemists Ltd 1 - - - - - - 1
Kingsgate Enterprises Ltd 1 - - - - - - 1
Kingsway Motors (K) Ltd - - 1 - - - - 1
Kingsway Properties Ltd 1 - - - - - - 1
Kingsway Tyre & Automart Ltd - - 2 - - - - 2
Kingsway Tyres Limited – Eldoret 1 - - - - - - 1
Kingsway Tyres Ltd- Recovery A/C 1 - - - - - - 1
Kingsway Tyres Ltd(University Way) 1 - - - - - - 1
Kingsway Tyres Ltd-University Way Branch - - - - - 1 - 1
Kipkorir Titoo & Kiara Advo. 1 - - - - - - 1
Account Title Number of Accounts by Type
Type of Account CA CD FD HPA LBD LN SB Total
Kirit N & Mrs. Anjana Patel - - - - - 1 - 1
Laloui & Mosleh Yazdi - - 2 - - - 1 3
Laser Creations 1 - - - - 2 - 3
Leila Ehsani - - 1 - - - - 1
Lions Club Greater Nairobi - - 4 - - - - 4
Lucy W Mwangi - - 1 - - - - 1
M. R. & S. R. Shah 1 - 8 - - - - 9
Magnolia - 9 - - - - - 9
Manish R Shah - - 1 - - - 1 2
Manjunath W Prabhu - - - - - - 1 1
Manoj R Shah - - 5 - - - - 5
Manoj R. Shah 1 - - - - - - 1
Manoj R. Shah Lions A/C - - 9 - - - - 9
Market Masters Ltd - 2 - - - - - 2
Market Masters Ltd – Electricity 1 - - - - - - 1
Masters Kenya Limited - - - - 2 - - 2
Mayfair Insurance Co. Ltd - - 1 - - - - 1
Meera Kamal Shah - - 1 - - - - 1
Meera Kamal Shah & Kamal R. Shah - - 6 - - - - 6
Meshack Ngare Ondieki 1 - - 1 - 4 - 6
Mina B. Shah - - 2 - - - - 2
Minakshi Navinchandra Shah - - - - - - 1 1
Miss Aakshi Shah $ Miss Shamim Ehsani - 1 4 - - - - 5
Miss Aakshi Shah & Mr Ankur Shah - - 2 - - - - 2
Miss Aashni Shah & Mr Homan Ehsani - - 5 - - - - 5
Miss Shamim Ehsani & Miss Aashni Shah - - 1 - - - - 1
Miss Shamim Ehsani & Mr Ankur Shah - - 1 - - - - 1
Mitesh & Manish N Shah - - - - - - 1 1
Mohamed H Alimohamed - - - - - 5 - 5
Mohamed Ifterhar Ghani - - 2 - - - - 2
Motor Tyre Suppliers Ltd - 1 1 - - - - 2
Mr & Mrs Nathwani - - 4 - - - - 4
Mr Ankur Shah & Miss Shamim Ehsani - - 4 - - - - 4
Mr Ankur Shah & Mr Homan Ehsani - - 2 - - - - 2
Mr Homan Ehsani & Miss Aakshi Shah - - 4 - - - - 4
Mr Neel Shah & Miss Aashni Shah - - 2 - - - - 2
Mr Neel Shah & Miss Shamim Ehsani - - 2 - - - - 2
Mr Neel Shah & Mr Homan Ehsani - - 2 - - - - 2
Mr. & Mrs Arsalan Laloui - - 1 - - - - 1
Mr. K.N. Patel & Mrs. A.K Patel - 1 - - - - - 1
Mrs. Bhanumati K. Shah & Mrs. Ina S.Shah - - 2 - - - 1 3
Mrs. I Kanabar & Mrs H. Kanabar - - - - - - 1 1
Mrs. Paniben D. Shah & Chandulal D. - - 1 - - - - 1
Mrs. Paniben D. Shah & Chandulal D. Shah - - 5 - - - - 5
Mrs. Paniben Dharamshi Shah Chandulal Dh - - 1 - - - - 1
Mrs. Suru & Nadeem Sadiq - - 1 - - - - 1
Account Title Number of Accounts by Type
Type of Account CA CD FD HPA LBD LN SB Total
Mrudula S Shah - - 5 - - - - 5
Ms. E N Gitau - 1 - - - - - 1
Mwauco Limited 1 - 1 - - - - 2
Naazmina Mohamed - - 1 - - - - 1
Naina M Shah - - 8 - - - - 8
Naina M.Shah & Manish R. Shah 1 - - - - - - 1
Naina Manish Shah - - 4 - - - 2 6
Nakumatt Holdings Limited - 1 - - - - - 1
Nakumatt Investments Ltd 2 - - - - - - 2
Narendra Raichand Shah - - 1 - - - 1 2
Narendra Shah A/C 2 - - - - - - 1 1
Narmadaben M Shah - - 1 - - - 1 2
Nassir Ahmed Ibrahim - - 1 - - - - 1
Navinchandra N. Shah - - - - - - 1 1
Nazir Sadrudin Jivan - - - - - - 1 1
Neel Shah - - 1 - - - 1 2
Neel Shah & Aakshi Shah - - 1 - - - - 1
Newcal Technologies 1 - - - - - - 1
Nikhil Vipin Shah - 2 - - - - - 2
Nilesh Karsandas Somaia - 1 - - - - - 1
Nilima Rajendra Shah - 2 - - - - - 2
Nisha & Pushpa Shah - - - - - - 1 1
Nisha S Raishi - - 5 - - - - 5
Nishit & Co. Ltd 1 - - - - - - 1
Nishit K Patel 2 - - - - 2 - 4
Nishit R Shah - - 2 - - - - 2
Njuca Consolidated Ltd 1 4 - - - 2 - 7
Nu Metro (Kenya ) Limited Marketing A/C 1 - - - - - - 1
Nu Metro (Kenya) Ltd, Prestige Plaza 1 - - - - 1 - 2
Odesys Enterprises 1 - - - - - - 1
Overseas Developments Limited - - 1 - - - - 1
Pacific Systems Ltd 1 - - - - - - 1
Paniben D. Shah & Chandulal D Shah - - 1 - - - - 1
Paniben D. Shah & Chandulal D. Shah - - 1 - - - - 1
Paolo Sattanino 3 - - - - - 1 4
Parker Radio House Ltd 1 1 - - 8 - - 10
Pepe Limited 1 - 8 - - - - 9
Peter Kabi Gitau - - - - - - 1 1
Phone Link (K) Ltd - 1 1 - - - - 2
Priyum Manoj Shah - - 1 - - - - 1
Proudview Investments - - 1 - - - - 1
Pushpaben R Shah - - 4 - - - - 4
R. Parmar - - - 1 - - - 1
R.Z. Haria - 2 - - - - - 2
Race Track Supermarket Ltd 1 - - - - - - 1
Rajul M, Shah - - 1 - - - - 1
 Account Title Number of Accounts by Type
Type of Account CA CD FD HPA LBD LN SB Total
Riyaz Hasham & Nishta Hasham - - - 1 - - - 1
Roadstar Limited - - - - - 1 - 1
S.K.D. Shah & S.R. Shah - 1 - - - - - 1
Safia Chaudry - - 1 - - - - 1
Saijul Mr. Shah - - - 1 - - - 1
Sanjay R Shah - 3 9 - - - - 12
Savitaben Shah - - 10 - - - - 10
Sawan Rajendra Shah - 2 - - - - - 2
Sawtantar Kumar & Ravinder Singh - - - - - 1 - 1
Shawaz Textile Mills Limited - - - - 247 - - 247
Shiloah Investments Ltd - - - - - 2 - 2
Shivam Enterprises Limited - - - - - 1 - 1
Shobhna Shah - - 6 - - - - 6
Shree Ram Mandir - - 2 - - - - 2
Shree Ram Mandir (Stri Shaba) - - 1 - - - - 1
Sonal Devani - - 1 - - - - 1
Sonia Shah - - 1 - - - - 1
Southlands Transporters Co. - - - 2 - - - 2
Soyum Manoj Shah - - 1 - - - - 1
Span Hardware & Building Suppl. - - - - - 2 - 2
Star Electronics Ltd - - - - - 1 - 1
Stephen K Tarus - - - - - 1 - 1
Sureshchandra P Shah - - 1 - - - - 1
Tasha Enterprises (K) Ltd - 2 1 - - - - 3
Tebebe Y. Berhan 1 - - - - - - 1
The Stage Market Ltd - - - - - - 1 1
Trenz Cosmetics Ltd - - 2 - - - - 2
Trenz Kenya Ltd - - 2 - - - - 2
Triton Petroleum Co. Ltd 1 2 - - - - - 3
Trucks Eicher Kenya Limited-Service A/C - - - - - 1 - 1
Tusker Mattresses Ltd - - 1 - - - - 1
Unizone Investments Ltd - - - - - 1 - 1
Uttamchand D. Shah & Chandulal D. Shah - - 1 - - - - 1
V - Market Choice Limited - 1 - - - 1 - 2
V And A Shah 1 - - - - - - 1
Vipin Maganlal Shah - - - - - - 1 1
W. E. Tilley (Muthaiga) Ltd - - - - - 2 - 2
William K Gitau - 2 1 - - - - 3
World Shelter Limited - - 2 - - - - 2
Yagnesh Devani - - 6 - - - - 6
Yellow House Ltd - 1 - - - - - 1
Total Number Of Accounts Without Forms 59 62 285 14 337 51 31 839
Key
CA – Current account; FD – Fixed Deposit
CD – Call deposit; LBD – Local Bills Discounted
SB – Savings Account
HPA – Hire purchase Account
 APPENDIX14
SUSPICIOUS TRANSACTIONS AND ACTIVITIES
CBK/PG/08

Failing to obtain and maintain records in regard to sources of funds and details of transactions.

Failing to submit to CBK reports of any suspicious transactions, or activities that may indicate money
laundering, or other attempts to conceal the true identity of customers or ownership of assets.

Opening and maintaining anonymous accounts.

ACCOUNT NATURE OF TRANSACTION

Nakumatt Holdings Limited . Between May 2003 and
CA 01-000085 October 2003, Shs 3.6 m.
was transferred to one,
Prajapati’s account on a
weekly basis. The 22 such
transfers totalled shs 79.2
million. Other transfers
included sh 20m. and sh.
30m. on 29th and 30th
December, 2003.

. On 20 December 2005,
debit transfers of Shs 120 m.
and sh. 12 m. each were
made from the Sundry
Creditors account SC 01-
600000 to the Nakumatt
account CA 01-000085. No
support documents for these
transactions.

. A cheque to withdraw Shs 6

m. was signed by one
signatory contrary to the
mandates documented. The
face of the cheque was
altered and details of
Nakumatt inserted.

. There were regular

transfers to the account of
Fresh an Juici of Shs 6.5
million on a regular basis for
which standing instructions
were not in place. Between
April 2005 and April 2006,
Shs 286 million had been
transferred in this manner.

Greenhills Investments Limited . Directors are Manish and

Manoj Shah (brothers to the
bank’s managing director),
 Mehraz Ehsani and Hamed
Ehsani.

. There were large cash

withdrawals to the level of
sh. 5 m. and on 24. 12. 2002
sh. 98,000,000 was
transferred to personal
account of one, Abbas
Ehsani, without supporting
documentation.

Paolo Sattanino (based in Italy) . There was a web of

transactions involving these
entities: Fones Direct;
Phones Direct; Intra Market
Trading; Brand Imports;
Panorama Imports; Triton
Petroleum; Cashline Forex
Bureau; Capricorn SRL;
Creative Innovations;
Kingsway Mart limited; Cargo
Distributors. All these
surrounded the activities of
one, Paolo Sattanino.

. Transactions in these
accounts entailed payments
of “cash” and transfers that
ends up in either Paolo
Sattanino’s account or at
Paramount Bank Limited.

- Cash is paid from the

Fones Direct & Phones Direct
accounts into Intra Market
Trading. From this account,
the cash is then transferred
to Cashline Forex Bureau.
The bureau then makes a
transfer to Paramount Bank
Limited;

- Brand Imports, Triton

Petroleum, and Panorama
Imports make transfers to
Cashline Forex Bureau account
before it is transferred to
Paramount Bank Limited. Brand
Imports also makes transfers to
the Capricorn account;

- Kingsway makes payments

to Paul Mburu who then makes
transfers to Cargo Distributors
whointurn makes a transfer to
Paolo Sattanino. Kingsway also
makes direct transfers into the
Paolo Sattanino account;

- Creative Innovations makes

payments to both the Paolo
Sattanino and the Capricorn
accounts;

- Credit balances in the Paolo

Sattanino and Capricorn
accounts are then transferred
out of the country through
telegraphic transfers without
supporting documents other
than e-mail correspondence
from Paolo Sattanino. Some of
the beneficiaries to which these
funds are transferred include
the following: Ettore Longo in
Italy, Hilda in Italy, Tradex SRL,
Capricorn SRL, Parmex Limited
directly or through Paolo
Sattanino. Others are Abdi and
J Nyaga;

- A number of companies and

individuals such as Creative
Innovations Limited, Brand
Imports Limited, Aua Industria
Limited and Suresh Shah
regularly transfer funds to Paolo
Sattanino and Capricorn SRL
accounts in lots of US$ 10,000
 or Euro equivalent.

Dilpun Shah Govindji Lakhamshi . There was another web of

transactions involving these
entities: Fones Direct;
Phones Direct; Lexus
Stationers; Global Brands K
Ltd; V Market Choice K Ltd;
Trenz K Ltd; D Shah; Aniket
Property & Investments Ltd;
Brand Imports; Panorama
Imports.

- These accounts appeared

to be operated by one
person and transactions were
linked to one, Dilpun Shah.

- A number of payments
made from these accounts
related to overseas payments
through the accounts of
Paolo Sattanino.

- The deposit slips into

these accounts appeared to
share the same handwriting.
Odesys Enterprises account CA 01-000740 . A sole proprietorship account
opened by one, Felix Odemba
Nabuko of Butere and
introduced by Dilpun Shah.

. Account opened on 25 Aug

2005. Account opening forms
contain no details regarding the
business.

. Over the 10 months’ period to

23 June 2006, the account’s
turnover was Shs 554,842,767
debits and Shs 566,256,592
credits.

. The account also had

significant cash deposits
accompanied by withdrawals of
similar amounts on the same
th
day. On 12 January 2005 a
cash withdrawal of sh.
10,060,000 was made from the
account.

Sailesh Prajapati Account CA 01 -000148 . Account opened on 8

January 1999 and closed on
2 August 2004. No account
opening forms and details of
mandates to operate the
account within the banking
system.

. During this period, the

account debit turnover was
Shs 2.2 billion.

. Amounts debited into this

account as ‘cash
withdrawals’ were traced to
the Sundry creditors account
No. 01-600000 in the
general ledger. Cash may
have never left the bank
although the entries in the
account are described as if
cash was paid out;

. Account exhibited the

following:

- Numerous transactions
of exactly the same
amounts. There were over
1,300 cash deposits of Shs 1
million each out of 1,570
total credits during the
period. Of the remaining
credits, Shs 105 million was
received from Nakumatt in
28 equal transactions of Shs
3.76 million each;

- “Loan proceeds” from

other accounts whose
relationship with the
Prajapati account was not
clear.

- Numerous credits
described as cash receipts.
1.1.1.1 Crucial Properties Limited A/C No. Although, the company had
FX01-400067
maintained bank accounts
since January 2001, the
account opening forms were
dated 24 April 2006. The
mandates to operate the
accounts give Humphrey
Kariuki as the only signatory.

The board resolutions

authorising the company to
operate an account at CB was
dated 24 April 2006. The
resolution referred to A/C CA
01-000300 and CA 01-
600067, which are accounts
in the name of Crucial
Properties Limited. However,
there was no mention of A/C
FX 01-400067 and FX 01-
400070 which were also in
the name of the company,
but have since been closed.

This account was opened

and operated in 2001 during
which period there was a
large credit of Shs 1.9 billion.
These funds were then
transferred or paid out
between January and May
2001.

19 Jan 2001 a TT US$

24,998,785 – (shs.
1,949,905,230) received
from Temuco Foundation

22 Jan 2001 a TTFX 1044 of

shs 37,052,02826 paid out
(no supporting documents).
 Jan 2001 Cash Paid of shs
7,878,000 (no supporting
documents).

27 Jan 2001 Converted to

Shs7,842,822 (no supporting
documents).

3 Feb 2001 shs 390,000,000

transferred to Crucial
Property A/C no. 2 (FX 01-
400070)

25 April 2001 Revaluation –

(@77.5) 9,602,020Dr to
ensure that the US Dollar
equivalent is maintained.

10 May 2001 Demand Drafts

1545-1569 , shs.
1,418,250,001 (US$
18,300,000.) paid out – no
supporting documents

11 May 2001 Transfer of US$

700,000 to A/C CA 01-
000300 of Crucial Properties
(shs 54,600,000).

Crucial Properties Limited A/C 2 – A/C FX 01-400070 . Account opened in February

2001 and operated for 3
weeks after which it became
dormant and closed in April
2004. The account received a
single credit of Shs 390
million from account Fx 01-
400067.

. Within three days of receipt

of this cash, Shs 312 million
was transferred to a lawyer’s
account, Kariuki Muigua &
Co Advocates Client Account
2
1.1.1.2 Crucial Properties Limited A/C 2 – This account was opened in
A/C CA -01-000300
February 2001 and turned
dormant after May 2001. The
credits into this account
seem to have originated from
the Shs 1.9 billion account.

6 Feb 2001 US$ 50,000

received from FX 01-400070
(shs 3,872,500) - Amount
transferred from CA 01-
000300

13 Feb 2001 paid a B/CQ

favouring V.K. Constructions
2,500,000

13 Feb 2001 paid a B/CQ

favouring Greencorner
Restaurant3,000,000

13 Feb 2001 paid a B/CQ

favouring Wines of the World
35,000,000

13 Feb 2001 received US$

500,000 @ 77.50
(38,750,000)

19 Feb 2001 Cashed

Cheques 7,890,000

19 Feb 2001 paid DD1486

CXD & Bal 101,746
(7,925,988)

11 May 2001 paid B/CHQ G

K Williams (Various)
24,000,000

11 May 2001 paid B/CHQ

Airline Supplies 23,100,000
11 May 2001 paid B/CHQ
Green Corner Restaurant
3,000,000

11 May 2001 paid B/CHQ

Kariuki Muigua 3,000,000

11 May 2001 received US$

700,000 (54,600,000) a
transfer from FX 01-400067

Some beneficiaries of the

damand drafts from Crucial
Properties included Wellen
International Ltd (shs. 229
m.) and Wallance Holdings
Limited ( shs. 54m.).
1.1.1.3 Kariuki Muigua & Co Clients A/C This account was opened,
No. 2 – A/C FX 01-400069
operated and closed within 1
week in February 2001. The
main transaction related to a
transfer of Shs 312 million
from another account within
the bank belonging to
Crucial Properties Limited
A/C 2 (See Section 5.6.1.2 of
the report above)

06 Feb 2001 received US$

4m from A/C FX 01-400070
(312,000,000) from A/C FX
01-400070.

12 Feb 2001 sold US$

300,000 to cash –
shs.23,400,000

12 Feb 2001 sold US$

300,000 to cash –shs
23,400,000

13 Feb 2001 sold US$

3,400,000 265,200,000

Above transactions traced to

Kariuki Muigua & Co Clients
a/c CA 01-000091.

1.1.1.4 Kariuki Muigua & Co Clients A/C – 12-Feb-01 received Sale of

CA 01-000091
USD 300,000 @ 77.80 from
FX69 - (shs.23,340,000)

12-Feb-01 received Sale of

USD 300,000 @ 77.85 from
FX69 (23,355,000)

12-Feb-01 Cash Withdrawal

7,515,000

12-Feb-01 B/Chq FVG

Kariuki Muigua A/C
15,000,000

13-Feb-01 received sale of

USD 3,400,000 @ Shs 77.50
(263,500,000)

13-Feb-01 Cash Withdrawal

18,125,000

13-Feb-01 B/Chqs FVG

Kariuki Muigua A/C
(3531,3538,3532,3533) -
shs 128,000,000

13-Feb-01 B/Chqs FVG G K

Williams (3536 & 3537) -
shs50,000,000

13-Feb-01 B/Chqs FVG

Crescent Constructions
(3529 & 3530) -
shs80,000,000

22-Feb-01 B/Chqs FVG G K

Williams (3661, 3658, 3666,
3663, 3664, 3660, 3665,
3659 & 3662)) – shs
90,000,000

• 22-Feb-01 Cancelled
B/Chqs 3531/2/3
(100,000,000) On 12
February 2001, Shs
46,695,000 was
received into this
account and Shs
22,515,000 was paid
out. The following day,
13 February 2001, Shs
263,500,000 was
received (equivalent of
 US$ 3,400,000) and
Shs 276,125,000 paid
out;

• The payments noted

above comprised the
following: Shs 140
million was described
as payments to a GK
Williams, Shs 80 million
was described as paid
to Crescent
Constructions; and Shs
128 million was shown
as payments to Kariuki
Muigua, out of which
Shs 100 million was
reversed on 22
February 2001;

• The description in the

Kariuki Muigua & Co
Clients A/C No. 2 – A/C
FX 01-400069 shows
the debits as if they
were sale of currency.
This could be
misleading and may
have been aimed at
concealing the actual
transfer from one
account to another.
There may be a link
with the amounts
transferred out of the
Crucial Properties
Limited account

• The funds that were

credited into this
account were paid out
almost immediately
through what are
described in the
account as bankers
cheques or cash
withdrawals.

Nakumatt’s “shadow”
account (CA 01-000091)
received large cash deposits
and cheques drawn from its
account with Barclays Bank
Kenya Limited. Other credits
included cash deposits from
Mombasa. Beneficiaries of
payments from the account
were parties that would
ordinarily be trading with
Nakumatt Supermarkets.
Daily transactions on the
account were numerous with
26th January 1999 recording
205 transactions.
 APPENDIX15
MONTHLY STAFF EMOLUMENTS PAID OUTSIDE THE PAYROLL WITHOUT
DEDUCTING TAX
CBK ACT SECTION 33G (1) (b)

NAME OF STAFF JOB TITLE ENTERTAINMENT CONVEYANCING TOTAL

ALLOWANCE – KSH. ALLOWANC – KSH. KSH.

ARUN JAIN OPERATIONS 20,000 17,000 37,000

MANAGER

PETER J MWANGI MANAGER 20,000 15,000 35,000

HEAD OFFICE

S.B. PILLAI CREDIT MANAGER 20,000 12,000 32,000

VINAYAN PODUVAL MANAGER 10,000 N/A 10,000

IT DEPARTMENT

W. PRABHU GENERAL MANAGER VARIES (NOT FIXED)

 APPENDIX 16

TAX EVASION AND OTHER IRREGULARITIES

Mechanisms were devised to assist certain local companies (“importers”) to evade taxes such as import duty, excise duty and VAT (“Taxes”). Based on the
e-mails and other records, entities involved in such tax evasion include, but not limited, to the following:

λ Kingsway Tyres Limited/Kingsway Tyre and Automart Ltd (“KTL”)

λ Creative Innovations Ltd

λ Bachu Industries

λ Brand Imports Ltd

λ Cargo Distributors

λ Aua Industria Ltd

λ Hidden Treasures

λ Books First

λ Motorline (in Mombasa)

λ Shift Cargo Ltd

λ Africa Media Group Ltd-Tanzania

λ Transcargo Ltd-Tanzania

Such evasion of taxes would be facilitated by the involvement of 6 off-shore companies namely:

λ Tradex SRL (“Tradex”) in Italy

λ Capricorn SRL (“Capricorn”) in Italy

λ Parmex Limited (“Parmex”) in the UK

λ Parmar General Trading LLC (“PGT”) in Dubai

λ Epsom Holdings Corporation ( “Epsom”) in Liechtenstein and

λ Foreman Corporation (“Foreman”) in Belize

The diagram below illustrates the activities and parties involved in the importation of goods, the payment of these and
documents used for the payment of taxes on the importation.

2

Payments on instruction of
Paolo Sattanino mainly to
Tradex & Capricorn (probably
used to pay suppliers)
Key features are:
OFF-SHORE SUPPLIERS
Payment of full Full invoice value
invoices value
OFF-SHORE COMPANIES
• Tradex SRL in Italy
• Capricorn SRL in Italy
• Parmex Ltd in the UK
• Parmar General Trading in Dubai
• Epsom Holdings Corporation in Leichtenstein
• Foreman Corporation in Belize
• Under-valued invoice for
purposes of import declaration Payment of the invoices
• Perhaps also full invoice for the raised by the above
purpose of remittance (though Some direct
companies Payments by these
not seen) payment to
suppliers individuals are mostly to
Parmar and Parmex for
the account of Kingsway
or Creative Innovations
Some Invoices sent IMPORTERS/ CB CUSTOMERS
directly to companies Kingsway Tyres, Brand Imports, Bachu Industries,
Cargo Distributors, Creative Innovations, Aua
Industria Ltd, Africa Media group etc.
Possibly payments
Numerous split from Bank
payments of under
US $ 10,000 THIRD PARTIES
• Mehul Shah
• Jaspal
• Suresh Shah
• Bachu Industries
• Paolo Sattanino • Transenergy Ltd
• Capricorn SRL KRA • Forex Bureaus
Payment of duties based on etc
under-valued invoices
3
λ Suppliers invoice the off-shore companies for the goods supplied to the importers who are customers of Charterhouse Bank Limited
(CHB)
λ Off-shore companies provide undervalued pro forma invoices and/or commercial invoices to the importers for purposes of IDF
declaration on the value of goods imported and therefore taxes payable
λ Importers remit funds to the off-shore companies for the goods supplied by:

− remitting foreign currency monies into Paolo and Capricorn bank accounts at CHB which is then remitted to Tradex and
Capricorn (on Paolo’s instructions) without appropriate supporting documents and

− direct payments to the off-shore companies.

λ Remitters would instruct Paolo on what to do with the payments remitted. Since purchase of amounts above US$10,000 requires
supporting documents, the remittances into Paolo’s accounts (either by cash or transfers from account holders at CHB) are in most
cases in tranches of US$10,000 or equivalent in other currencies.

A description of each of the off-shore companies, their activities and involvement in the process is as follows:

Tradex and Capricorn in Italy

λ These two companies are in Italy and are represented by a Mr Paolo Sattanino. (“ Paolo”).
λ Paolo maintains 7 personal accounts at CHB ( Sterling Pound, Euro, US$ and KShs )
λ Capricorn has 4 bank accounts (2 Euros and 2 US$) at CHB
λ Paolo facilitates the documentation, inspection, shipment and payment on behalf of the importers of goods to the exporters.
Negotiations and identification of suppliers is often done by the importers directly. Key importers are KTL for tyres, rims and other
accessories, Creative Innovations Ltd for furniture and electrical accessories and Hidden Treasures for books.
λ Paolo provides under valued pro forma invoices, blank invoices and commercial invoices as required by the importers to evade import
taxes. Instructions in respect of these requirements are from Sanjay. Paolo makes payments to suppliers and others on instructions of
Sanjay and the importers
λ There is evidence of an agreement by Sanjay to pay Paolo 0.5% profit/commission on the FOB values from the suppliers
λ Monies are remitted into Paolo’s various accounts at CHB by the importers and other individuals. Paolo maintains accounts of the
remitters and provides statement of accounts to them. These statements indicate payments received from them, debit notes sent and

4
 payments made on their behalf. Since the purchase of amounts above US$10,000 requires supporting documents, the remittances into
Paolo’s accounts (either by cash or transfers from account holders at CB) is almost always in tranches of US$10,000 or equivalent in
other currencies
λ Monies from Paolo’s and Capricorn accounts are then remitted mainly to Tradex and Capricorn on instructions from Paolo without
supporting documentation.

Paolo’s bank accounts at CHB

The table below is a summary of the following:

λ Funds received into Paolo’s and Capricorn’s active accounts at CHB and
λ Samples of remittances made off-shore from Paolo’s accounts on his instructions

5
Funds received by Paolo and Capricorn active bank accounts at CHB

Account Account Account Transactions Number Value of credits into the account Comments based on the description in the current account
Details Name Number period of Credits
in the
account
Total cash Transfers
GBP Paolo CA 01- Apr 04 to Oct 7 18,650 4,552 14,088 A single cash credit of GBP 4,552 is from D Shah.
700154 05 Source of the credit transfer is unknown.
Euro Paolo CA 01- Apr 04 to Jun 168 1,205,052 171,451 937,265 Creative Innovations Ltd, KTL and Brand Imports account for
800145 06 51% of the total transfers into this account (18%, 15% and 18%
respectively). Other transfers include Cargo Distributors, Hon
Kabogo, Habib, Suresh Shah and D. Shah. Transfers made in
tranches of US$ 10,000 and below.
Euro but Paolo FX 01- Dec 03 to Mar 35 28,705,103 15,140,315 13,556,316 Euro account maintained in Kenya Shillings
maintained 400145 04 Transfers are mainly from Creative, Cargo Distributors Ltd and
as KShs Capricorn in tranches of US$ 10,000 and below.
US$ Paolo CA 01 - Feb 03 to Jun 187 2,284,533 85,249 2,157,312 There are about 150 transfers into this account of $10,000 each
600006 06 mainly from Creative Innovations Ltd and KTL accounts
US$ but Paolo FX 01- Mar 99 to Mar 148 63,646,190 39,026,661 18,261,783 This is a Euro account maintained in Kenya Shillings. Transfer
maintained 400006 04 mainly from Creative Innovations Ltd, Capricorn and Saima
as KShs Avandero.

US$ but Capricorn FX 01- Jan 02 to Dec 67 53,230,397 13,187,013 22,609,403 Credits into this account are mainly from Creative Innovations
maintained 400093 03 Ltd, Paolo and Capricorn.
as KShs
Euro but Capricorn FX 01- Feb 02 to Dec 175 136,961,850 71,175,189 43,327,867 There are mainly cash deposits into this account. Credit transfers
maintained 400098 03 are mainly from Creative Innovations Ltd, Brand Imports, KTL and
as KShs Cargo distributors.

6
 Examples of remittances made from Paolo and Capricorn accounts on Paolo’s instructions

Date of Remitter as specified by Account to be debited as specified by

Remitter details as advised by Paolo Currency Amount Beneficiary
email Paolo Paolo

19-Sep-02 Creative Innovations Ltd None Euro 19,710 Capricorn Capricorn Euro Account with CB

23-Sep-02 Kingsway Tyres Ltd Invoice No 257 Euro 17,412 Capricorn Capricorn Euro Account with CB

23-Sep-02 Brand Imports None Euro 70,000 Capricorn Capricorn Euro Account with CB

13-Nov-02 Cargo Distributors Ltd Invoice No 281 Euro 2,991 Capricorn Capricorn Euro Account with CB

19-Dec-02 Cargo Distributors Ltd Invoice No 348 Euro 13,859 Capricorn Capricorn Euro Account with CB

19-Dec-02 Creative Innovations Ltd Invoice No 330, 334, 340, 343, 323, 336 Euro 39,471 Capricorn Capricorn Euro Account with CB

06-May-03 Brand Imports Invoice No 101 Euro 21,319 Capricorn Capricorn Euro Account with CB

06-May-03 Creative Innovations Ltd Invoice No 100 Euro 26,800 Capricorn Capricorn Euro Account with CB

06-May-03 Kingsway Tyres Ltd Invoice No 94 Euro 33,923 Capricorn Capricorn Euro Account with CB

11-Oct-04 Creative Innovations Ltd Deposit on order confirmation US$ 70,000 Tradex US$ account no Fx 400006

19-Oct-04 Kingsway Tyres Ltd Invoice No 143 GBP 695 Tradex GBP account no Fx 400154

19-Oct-04 Charterhouse Invoice No 68/105/133/140 Euro 31,638 Tradex Euro account Fx 4000145
/146/151/162/164
15-Nov-04 Franco Tramontano None US$ 16,000 Tradex - Dubai UAE US$ account no CA 600006

20-Dec-04 Kingsway Tyres Ltd Invoice no 200 Euro 26,307 Tradex Euro account Fx 4000145

07-Jan-05 Creative Innovations Ltd Invoice no 148 Euro 20,000 Tradex Euro account Fx 4000145

14-Jan-05 Africa Media Group Ltd Final settlement US$ 30,000 Screen Service Italia SRL US$ account

Kingsway Tyres and Automart

21-Jan-05 Invoice no 7400578/7400593/7400594 US$ 49,908 Wilson Logistics Italia Spa US$ account no Fx 400006
Ltd
Kingsway and Creative Kingsway invoice - 160
31-Jan-05 Creative Innovations Ltd - Order US$ 200,000 Tradex US$ account no Fx 400006
Innovations Ltd
Creative Innovations Ltd, fi ti
03-Feb-05 Invoice no 183/199/203/165/152 Euro 60,026 Tradex Euro account Fx 4000145
Brand Imports & Motorline
08-Mar-05 Charterhouse Invoices no 193/3/7/26 Euro 42,534 Tradex Euro account Fx 4000145

31-Mar-05 Africa Media Group Ltd Invoices no 49 dated 22/3/2005 Euro 27,271 Tradex Euro account Fx 4000145

07-Apr-05 Creative Innovations Ltd Deposit on order confirmation US$ 170,000 Tradex US$ account no Fx 400006

7
Date of Remitter as specified by Account to be debited as specified by
Remitter details as advised by Paolo Currency Amount Beneficiary
email Paolo Paolo

12-Apr-05 Any African name None Euro 1,531 Mr. Ettoro Longo Euro account Fx 4000145

21-Apr-05 Creative Innovations Ltd Invoices no 40/42/50/62 Euro 48,980 Tradex Euro account Fx 4000145

25-May-05 Aua Industria Ltd Deposit on order confirmation US$ 100,000 Tradex US$ account no Fx 400006

01-Jun-05 Charterhouse Invoices no 47/63/66/73/87 Euro 33,809 Tradex Euro account Fx 4000145

01-Jun-05 Kingsway, Hidden treasures & Invoice 80, Invoice 51& Deposit on order US$ 117,010 Tradex US$ account no Fx 400006
Creative Innovations Ltd confirmation
22-Jun-05 Hidden treasures Invoice No 109 GBP 753 Tradex GBP account no Fx 400154

27-Jun-05 Kingsway Invoice no 77 Euro 62,287 Tradex Euro account Fx 4000145

Creative Innovations Ltd Invoices 81 (partial) 99 (full)
11-Jul-05 Any African name None Euro 978 Mr. Ettoro Longo Euro account Fx 4000145

18-Jul-05 Suresh Shah Deposit on order confirmation Euro 15,000 Tradex Euro account Fx 4000145

20-Jul-05 Creative Innovations Ltd Deposit on order confirmation US$ 80,000 Tradex US$ account no Fx 400006

29-Aug-05 Creative Innovations Ltd Deposit on order confirmation US$ 100,000 Tradex US$ account no Fx 400006
Aua Industria Ltd
14-Sep-05 Brand Imports Invoices 150/146/113 Euro 79,688 Tradex Euro account Fx 4000145
Creative Innovations Ltd
20-Sep-05 Brand Imports, Creative Invoices 147/146/138/134 Euro 29,167 Tradex Euro account Fx 4000145
Innovations, Africa Media
29-Sep-05 Hidden treasures Invoices 174 GBP 1,000 Tradex GBP account no Fx 400154

13-Oct-05 Any African name None Euro 560 Mr. Ettoro Longo Euro account Fx 4000145

23-Nov-05 Charterhouse None Euro 27,716 Tradex Euro account Fx 4000145

06-Dec-05 Creative Innovation Ltd Invoices 116 & 186 Euro 93,090 Tradex Euro account Fx 4000145

23-Jan-06 Creative Innovations Ltd Invoices 229/05 Euro 54,741 Tradex Euro account Fx 4000145

17-Mar-06 Aua Industria Ltd Deposit on order confirmation US$ 30,000 Tradex US$ account no Fx 400006

8
Examples of Paolo’s e-mail communication

Below are examples of e-mail communication between Paolo and Sanjay and other remitters to his account:

• Paolo to Amar Taylor of Aua Industria dated 11 October 2005

“Apparently you have paid US$62,000 to Tradex Italy wherein was expecting the same to be paid in Kenya with CB!! ………please
never pay to Italy unless we agree first!! “ This money was paid directly to Italy by a Mr Paresh Shah (US$39,982.50) and Mr Palvi
Patel (US$21,982.50)

• Paolo to Sanjay regarding Aku of Brand Imports dated 16 November 2005

“ ….aku has given instructions to Charterhouse to remit to Tradex Italy Euro 39,228.18-That is fine for me but can you make sure
no sender neither details will appear on the TT!!. reason is, i do not have any official outstanding on my books with Brand imp”
Sanjay responded on 17 Nov 2005 “We will not put name on your Euro Credit on the statement|”

• Sanjay to Paolo dated 7 July 2005

“ Kindly note the above amount has been remitted to your account by Hon Kabogo” The amount is Euros 5,270

• Paolo to Sanjay dated 13 September 2005

“I have asked Suresh to pay 100,000 Euros to tradex to be able to pay his suppliers. I do not know whether he needs to pay the
same to my account in Kenya or not…….in case he wants to go through my Charterhouse account, please make sure this will not
be done in one lot……..”

Parmex and PGT

λ Parmex is a company registered in the UK and PGT in Dubai. It appears that there is common ownership interest in these two
companies by the Parmar family which actively manages these companies. The UK Company is actively managed by Mr D.Parmar and
Mr S. Parmar and the Dubai business by Mr B.Parmar and Mr C. Parmar (son of B.Parmar).
λ There is evidence of an agreement by Sanjay to pay Parmex 0.5% profit/commission on the FOB values from the suppliers.
λ Parmex and PGT facilitate the documentation including providing pro forma invoices for the purpose of import declaration, inspection,
shipment and payment on behalf of the importers of goods to the exporters. This arrangement is similar to that of Paolo of Tradex but in
this case Paolo often does the administrative work and also issues Parmex Ltd invoices to KTL and other importers. Key importers are
KTL and Creative Innovations Ltd.

9
λ KTL purchases tyres mainly from Transityres in Europe in the name of Parmex. Transityres invoices Parmex which in turn invoices KTL
and sends both of these invoices to KTL.
λ Sanjay provides guidance on the activities and trading of Parmex and has arranged securities for loan facilities to Parmex’s lenders.
Parmex had loan facilities of about US$4.4m October 2004 at AMN Amro, guaranteed by personal deposits of Sanjay Shah/Manoj
Shah/Manish Shah.

Other activities of Parmex and PGT

Local sales paid off-shore

There is evidence that sales made locally by KTL to buyers such as Transenergy (K) Ltd in Mombasa, RT (East Africa) Ltd and Bachu
Industries are paid for in Dubai to PGT by the purchasers E.g. a local sale of US$181,936 to Transenergy was paid for by Transenergy’s
office in Dubai to PGT by way of 4 equal post dated cheques. Similarly another local sale to Transenergy of US$ 56,880 was paid for in
Dubai to PGT and in this particular instance 2 invoices seem to have been raised by Kingsway Tyre and Automart. One for US$ value to
PGT since they asked for an invoice to be accounted for in their books and another local invoice to Transenergy. It is therefore likely that
this method of invoicing and direct off-shore payments/receipts could result in under-reported revenues by KTL.

Payment of personal and friends bills

Certain personal bills and of parties related/associated to Sanjay are received by Parmex and paid on Sanjay’s approval. These include
bills for credit cards, Amex card bills for Mr Harun Mwau and safe deposit box rentals. D.Parmar notified Sanjay of receiving John Harun’s
Amex bill of ₤9,086 and the need to pay this bill.

Local Payments on behalf of PGT

Often payments are made locally by Sanjay on behalf of PGT on instructions of Mr B. Parmar. The equivalent of the local amounts in US$
is credited to the relevant accounts such as KTL or Creative Innovations Ltd account in Dubai. Examples include:

λ Payment of US$10,000 made to Mr Jaffer and Creative Innovations Ltd account credited in Dubai

10
λ KShs 1,152,540 paid to Mr Gulam Abbas and Creative Innovations Ltd account credited in Dubai
λ US$10,000 and KShs 449,580 paid to Mr Gulam Abbas and KTL account credited with US$16,000 in Dubai

Receiving payments from Paolo on behalf of KTL

Paolo maintains a trading current account with Parmex. Often Sanjay requests Paolo to instruct Parmex to debit Paolo’s account in its
books and credit the KTL account with the same. In return KTL credits Paolo’s US$ account at CB. E.g. a US$100,000 transfer from
Paolo’s account into KTL account in Parmex books was re-imbursed to Paolo in his US$ account at CB by way of 10 tranches of
US$10,000 so as to avoid any documentation as required by CBK.

Receiving payments for various third parties

Various payments were received into the Parmex account at CB from individuals, CB and likely customers of KTL. It seems there were
private arrangements made by Sanjay with the remitters to have funds remitted to Parmex. Further investigations are required to
understand the completeness of these transactions i.e. the authenticity of the remitters and the reasons for remitting monies to Parmex.

11
 The table below provides details of some of the funds paid to Parmex

Date of
Payer Currency Amount Comments
email

Cash less
US$ 49,750.00
commission B. Parmar writes to Sanjay "we are crediting parmex account with US$ 200,000 and the remaining we credit Kingway Tyres account with
06-Sep-04 Monia Posti US$ 129,950.50 US$ 49,676.5 in PGT books”
Amin and Premji US$ 69,976.00

L Dolciami c/o B. Parmar writes to Sanjay " …… we have receved US$ 64,996 with value dated 16.09.2004 from L.Dolciami, C/o Bay forex as per
25-Sep-04 US$ 64,996.00
Bay forex enclosed copy. We are creditting this amount to Kingsway Tyres account."

10-Jan-05 Mehul GBP 6,000.00 D. Parmar of Parmex writes to Sanjay "we confirm receiving instructions from Mehul to transfer GBP 6,000 to Kingsway Tyres”

Mehraz Ehsani US$ 39,951.59

17-Jan-05 S. Parmar of Parmex email to Sanjay advising receipt of funds
Kingsway Tyres US$ 199,936.73
23-Feb-05 Jaspal GBP 5,000.00 S. Parmar advising Sanjay of the receipt of cash

₤100,000 was received in cash from unknown source. D. Parmar of Parmex writes to Sanjay "we are depositing the cash of GBP 100,000
24-Feb-05 Parmex, UK GBP 100,000.00 in lots of approx 5,000 per day. Hence the first payment of approximately US$ 90,000 to Transtyre can not be effected until about 8
working days time from today.”

Rowshanak
S. Parmar of Parmex email to Sanjay "we have received net Euro 2,370 for Rowshanal Nazari Khan, the Village Market. Please confirm if
28-Feb-05 Nazari Khan, of Euro 2,370.00
this for your account"
Village Market

01-Mar-05 Jaspal GBP 6,000.00 S. Parmar advising Sanjay of the receipt of cash
03-Mar-05 Jaspal GBP 6,000.00 S. Parmar advising Sanjay of the receipt of cash
07-Mar-05 Jaspal GBP 8,000.00 S. Parmar advising Sanjay of the receipt of cash
08-Mar-05 Jaspal GBP 7,000.00 S. Parmar advising Sanjay of the receipt of cash

09-Mar-05 Jaspal GBP 8,000.00 S. Parmar of Parmex email to Sanjay, "please be advised that we have received cash £8,000 from Jaspal."

10-Mar-05 Jaspal GBP 7,000.00 S. Parmar advising Sanjay of the receipt of cash
11-Mar-05 Jaspal GBP 8,000.00 S. Parmar advising Sanjay of the receipt of cash
Zahiad
14-Mar-05 US$ 9,966.37 S. Parmar writes to Sanjay "today we have received net $9,966.37 from Zahiad Janmohamed."
Janmohamed

12
Date of
Payer Currency Amount Comments
email

BACHU US$ 39,836.43 Sanjay writes to D. Parmar "this is to confirm that US$ 39,836.43 from Bachu is for the account of Kingsway”

Zahiad
16-Mar-05 US$ 9,966.41 S. Parmar writes to Sanjay "we confirm having received net $9,966.41 from Zahiad S Janmohamed for today's value date"
Janmohamed
Zahiad
22-Mar-05 US$ 9,966.56 D. Parmar writing to Sanjay confirming receipt of funds
Janmohamed
29-Mar-05 US$ 50,000.00 D. Parmar writing to Sanjay confirming receipt of funds
12-Apr-05 Court Langley Ltd GBP 165,000.00 S. Parmar advising Sanjay of the receipt
Religious S. Parmar writes to Sanjay” we have received US$29,954 from ordering customer “Religious Account” Nairobi. Please confirmif this is for
29 July 2005 US$ 29,954.00
Account your account.”
Mr and Mrs
1 Sept 2005 GBP 15,000.00 From S. Parmar Parmer to Sanjay ” we confirm safe receipt of a chq for GBP 15,000 from Mr & Mrs RK Shah”
RKShah

Bachu Induatries S. Parmar of Parmex writes to Harshad Amin "please be advised that we have received net US$43,538.97 from Bachu Industries Ltd for
US$ 43,538.97
Limited today's value date for the account of Kingsway."
24-Oct-05
Transcargo Ltd, S. Parmar of Parmex writes to Harshad Amin "We have also received net US$6,874.26 from Transcargo Ltd, Tanzania, please confirm if
US$ 6,874.26
Tanzania this is for your account."

Worldwide
27-Oct-05 US$ 11,339.20 S. Parmar advising Sanjay of the receipt
Adventure Travel

30-Nov-05 Bachu Industries US$ 43,574.58 S. Parmar advising Sanjay of the receipt

Worldwide Sanjay writes to D. Parmar of Parmex "Kindly note that we are expecting STG 3,250.00 from a company called Worldwide Adventure
20-Dec-05 GBP 3,250.00
Adventure Travel Travel to be paid to yourselves. Could you check and confirm receipt of these funds."

RT East Africa Rajesh of Parmar writes to Sanjay "we have received US$ 106,817.20 from RT East Africa Ltd with value date 01.06.2006 and we are
06-Jun-06 US$ 106,817.20
Ltd making payment to Transityre as per instruction."

07-Jun-06 Charterhouse US$ 85,000.00 Sanjay advising D. Parmar of Parmex that they should be receiving these amounts

07-Jun-06 Bachu US$ 101,340.80 Sanjay advising D. Parmar of Parmex that they should be receiving these amounts

13
Epsom Holdings and Foreman Corporation

It appears that these are not trading companies. There were proforma invoices from these two companies for the supply of books to Books
First and Hidden Treasures. Paolo of Tradex arranged for the shipment of the books and asked Sanjay in an e-mail dated 15 December 2003
what invoices to use for this consignment and Sanjay responded on 17 December 2003 asking to use any of the two companies, Epsom or
Foreman. Further investigation would be appropriate in order to verify the consignment of books to Books First and Hidden Treasures and
establish the payments made by Books First and Hidden Treasures in respect of this consignment and the taxes paid.

Taxes (Import duty, Excise duty, VAT) paid

There is evidence of activities that strongly suggest the possibility of underpayment of taxes by the importers that Sanjay is associated with.
These activities entail:

λ Preparing under-valued proforma and commercial invoices for purposes of IDF declaration on the value of goods imported
λ Obtaining blank invoices from suppliers and Paolo of Tradex with the intention of undervaluing goods imported in order to pay lower
taxes.
λ Disguising or not appropriately describing the goods imported

The table below illustrates the under-statement of invoices on imported goods for purposes of IDF declaration with the objective of evading the
import related taxes.

14
 Preparing under-valued proforma and commercial invoices for the purpose of IDF declaration on the value of goods imported

Source of
Date of Value of Pro
Type of adjusted Actual Value Under
invoice Supplier Agent Consignee forma Comments and extracts from email correspondences
goods pro forma of Goods declaration
/Email invoice used
invoice
Parmex Ltd Paolo writes to Sanjay “.. for your information the inspector
and will only come when the container is loaded so, provided no
Kingsway Excelcior body is going to open the container over there, in the future if
1 Oct
Capricorn Tyres and Tyres Export, $39,042.00 $ 75,508.78 $36,466.78 we want to play some game on the quantity we will be able to
2003
Automart Ltd Import & do it”
Finance
Services
Creative Tradex
15-Jan- Correspondences are between Paolo and Sanjay copied to
Tradex Innovations Luxten lights $10,271.40 $21,000.00 $10,728.60
04 Dipesh Valani of Creative Innovations Ltd.
Ltd
13-Oct- Tecra Intl - Kingsway Tecra Intl - Two proforma invoice with the same number (PI-P08103/A).
Tyres $22,037.16
04 Dubai Tyres Ltd Dubai One is about 20% less in value compared to the other
Tradex Paolo writes to Sanjay “here enclosed proforma invoice
10-Feb- Kingsway
Tradex Rims $10,886.16 $36,810.00 $25,923.84 actual value 36,810 if you are happy with the same, pls carry
05 Tyres Ltd
on and apply for IDF”
Johnnic Supplier (Benjamin Krief) writes to Sanjay “ Can you please
Comm SA receive confirmation that I will personally play with figures
Nu-Metro CDs, DVDs and confirm what is the lowest value we can “officially”
29-Apr- Johnnic Comm
Kenya and other $152,000.00 $240,000.00 $88,000.00 reach.”
05 SA
Limited accessories
Sanjay replies “Thank you for your email, yes I confirm and
await what is the lowest cost to work with.”
03-May- Zhejiang Parmex - Kingsway Zhejiang Two proforma invoice with the same number (915AW22003).
Rims $34,918.00 $58,196.67 $23,278.67
05 Zhongda Dubai Tyres Ltd Zhongda One is about 30% undervalued from the other.
Creative Tradex Adjusted proforma invoice attached. Email containing this
16-May-
Tradex Innovations Lights € 21,011.08 € 52,291.71 € 31,280.63 info is sent by Paolo to Sanjay and Shailesh Shah of Creative
05
Ltd Innovations Ltd
None The mail refers to an earlier discussion between Sanjay and
16-Aug- Not Kingsway
Zhejiang Rims Rims attached $22,118.00 $33,578.00 $11,460.00 a Ben. Indication there is no Custom Clean Report of
05 indicated Tyres Ltd
Findings (CCRF)

15
 Source of
Date of Value of Pro
Type of adjusted Actual Value Under
invoice Supplier Agent Consignee forma Comments and extracts from email correspondences
goods pro forma of Goods declaration
/Email invoice used
invoice
Creative None The mail refers to an earlier discussion between Sanjay and
16-Aug- Not
Khind Innovations Microwaves attached $17,286.00 $28,810.00 $11,524.00 a Ben. Indication there is no Custom Clean Report of
05 indicated
Ltd Findings (CCRF)
None Values are from the mail from Paolo to Sanjay
Creative
31-Aug- Seng Yip attached There are indications of two other containers (actual value
Tradex Innovations Furniture $8,000.00 $23,500.00 $15,500.00
05 Furniture $48,000) not yet repriced and Paolo asking Sanjay what to
Ltd
do.
Creative Tradex Both actual and the adjusted pro forma invoice attached to
14-Oct-
Zhangazhou Tradex Innovations Furniture $5,999.31 $22,826.00 $16,826.69 the mail. Paolo's email of 3 Aug 2005 to a "Ben" indicating
05
Ltd prior knowledge and discussions with Sanjay

Creative Both actual and the adjusted pro forma invoice attached to
29-Nov- Boston Office
Tradex Innovations Furniture $3,626.98 $7,860.50 $4,233.52 the mail. Goods sourced from Malaysia. Email containing this
05 Furniture
Ltd Tradex info is sent to Sanjay sent by Paolo of Tradex

Tradex Paolo writes, “…. Here enclosed proforma invoice for IDF (it
29-Nov- Kingsway Tyre centre
Tradex € 7,013.00 € 27,000.00 € 19,987.00 covers Teco goods which actual value is 27,000 euros) if you
05 Tyres Ltd accessories
are happy with that pls apply immediately for IDF ……. “

Obtaining blank invoices from suppliers and Paolo of Tradex with the intention of undervaluing value of goods imported for the
purpose of paying import duty

16
Date of Email Email from Email to Extracts as is extracts from the email

"Piano not mentioned on documents even invoice and packing list. We sent full set BL (bill of
02-Dec-02 Mr. Choi of Seowoong International Sanjay
lading) with blank invoice and packing list per requested"

“As agreed on phone, pls find here attached: …… Capricorn blank invoice (for you to type anything
08-Jan-03 Capricorn – Paolo Sanjay you need)”
Capricorn blank invoice attached
“They have no business with the actual invoices and Mavji ensure there are never declared on the
airway bill as it will only bring problems.”
01-Mar-03 Chanparmar@Parmex.co.uk Sanjay
Chandresh replies, "I have already done a dummy invoice for them. They need this for the UK
customs as this is the new requirement they need"
“pls find here attached invoice no.96 dated 15/04/03 without prices where you have the actual list of
items shipped, pls modify it as you wish and put prices as per your convenience for custom
17-Apr-03 Capricorn – Paolo Sanjay
clearance”
Blank Capricorn invoice attached

"please find attached a blank invoice for the 4 tyres" A Tradex blank invoice is attached addressed
14-May-04 Sanjay bestfast@net200ke.com
to Kingways Tyres Ltd

Mr. Choi of Seowoong

03-Nov-04 Sanjay “In your next DHL courier, please send some blank invoices and packing lists.”
International

14-Jun-05 Sanjay Seowoong International "…… would appreciate if you could send us blank invoices and packing lists."

" can you urgently send us 3 blank packing list and 3 blank invoices to enable us to do local
20-Jun-05 Sanjay Connie - vmsh@tm.net
inspection"

Disguising or not appropriately describing the goods imported

17
Date of Email Email from Email to Relevant extraction from the mail

"I am ready with me glasses for wardrobes and piemme for Kabogo, please tell me who will be the
04-Dec-02 Tradex- Paolo Sanjay
consignee and what description of goods you want me to put."

info@kingswaytyres.com and copied to "….. For the purpose of easy and quick clearing of goods indicate the goods as agricultural pipes
16-May-03 William Kabogo
abstairs@yahoo.co.uk and accessories plus one used agro-pipe bending machine. Total Value Rand 10,000"

.. " Description: General Cargo. There will be no inspection required" D. Parmar wrote “the supplier
28-Sep-03 Sanjay Parmex – D. Parmar is saying that customs in Brazil, will not allow description of goods to be declared as 'General
Cargo'. Supplier requests that goods description is: 'Alloy wheels and optional Accessories'"

22-Oct-04 Sanjay Seowood International - Mr Choi Instruction to describe goods as “General Merchandise"

" I urgently require you to ask the shipping company to change the description from Umbrellas to
24-May-05 Sanjay Tradex- Paolo Tyres."
"They do not need to mention the breakdown, they can only mention quantity of Tyres."

Kingsway Tyres Ltd- " ………. You must state the quantity of tyre shipped in the container as AGRICULTURAL
13-Feb-06 Balkrishna Tyres - Chetang
Harshad Amin TYRES…."

Communication between Sanjay, Paolo and the suppliers on underdeclaring the value of goods imported.

18
Date of Email Email from Email to Relevant extraction from the mail

"….. Actual value US$ 22,000 (may be better we will inspect it as 50% off ???"
12-Jan-04 Tradex- Paolo Sanjay
" ……. Actual value 18,000 (can we try the same as above???????)"

9-Mar-04 Tradex- Paolo Sanjay “ ….. the same should not be a problem since the value of my proformas was 65% undervalued”

"if we wanted to inspect batteries and tube shipments would you be able to get an inspection up to 50%
19-Oct-04 Sanjay Seowood International - Mr Choi under invoicing. If this is possible it would greatly help us if not we would then need to give you alternative
shipping instructions."
"As you make future shipments would it be possible to undervalue these shipments by probably 40-50%
04-Jan-05 Sanjay Seowood International - Mr Choi
on batteries and up to 60 - 70% on inner tubes."

Tradex- Paolo and copied to "In my mind we have reduced the cost of these tyres too low and probably looking for trouble. Would you
09-Mar-05 Sanjay
Hamin of KTL advise me the actual values so that we can see how much to declare."

Seowood International - Mr Choi

"….. We need to undervalue the same. By what percentage can you comfortably undervalue so we know
07-Apr-05 Sanjay copied to
how to process this matter"
hamin@kingswaytyres.com
"Can you ask your suppliers to confirm if he will get us the inspection at 30% - 40% undervalue?
27-Apr-05 Sanjay chanparmar@parmex.co .uk Thereafter I require you to prepare an original pro-forma invoice and the undervalue pro-forma invoice
………. "
"We need to know what these pro-forma's are and if any under invoicing is to be done so that inspection
05-May-05 Sanjay Kingsway - Harshad Amin
can be arranged"
Seowood International - Mr Choi,
06-May-05 Sanjay Harshad Amin of Kingsway and "Kindly advise us what undervalue you can do for each of the two invoices"
copied to Manoj of Kingsway

22-Jul-05 Sanjay bestfast@net200ke.com "I have attached the invoice which you need to undervalue by 30% and apply for IDF and arrange to clear"

"In respect of this invoice, may I suggest we create the actual invoice for more than $5,000 and can
26-Aug-05 Sanjay Tradex- Paolo
increase the value of tyres since Agricultural Tyres do not have duties."

19
Date of Email Email from Email to Relevant extraction from the mail

Paolo's request, "…. Actual value of shipment is ($)48,000. please advise what kind of Tradex invoice you
09-Sep-05 Sanjay Tradex- Paolo require for IDF and clearance"
Sanjay replied "please make approximately 40% and send to me"

05-Oct-05 Tradex- Paolo Sanjay "please urgently advise what kind of tradex invoice you need"

"….. I have updated the quantity to read I projector only."

29-Mar-06 Tradex- Paolo Amar Taylor – Aua Industria
"I have mentioned this to the boss and he said we will decide once the loot is in the account."

Other tax matters

Company revenue banked into personal account

There is evidence that rebates and marketing budgets for KTL in Nairobi from Transityres (KTL supplier ) in Europe is received into the
personal accounts of Sanjay Shah/Manoj Shah/ Manish Shah at Citibank (A/C No 305723) on the instructions of Sanjay Shah. These amounts
are Euros 37,800 (19/8/05) and Euros 12,779 (26/9/05) for the marketing budget and US$ 133,070 (July 2005) for the rebate.

E-mail communication indicating intention to evade tax

There is evidence in the form of e-mail communication that indicates intention to evade tax. We state as is some of these e-mail
communication below:

• From Bhavesh Patel of Creative Communication to dated 14 February 2006:

“We are still waiting for your advice on how to make invoices for 130m which is still pending as at today”

• From Sanjay to Hamed of Village Market dated 18 October 2005:

20
 “ ……Thereafter we request Patrionics to prepare a new bill with just the wordings Hotel Project and would save us from VAT
element”

• From D.Ghosh of Greenhills Investment (Sanjay is a director of this company) and Market Master to Sanjay dated 10 June 2004:

“ As you know that Molla and Naombi were doing PAYE Tax audit for Green Hills Investments and Market Masters for the years
1999 to 2003. They have finished and given the cert for Market Masters for the above period without any problems. But Greenhill
they have done their reconciliations and showing around 3 to 4 million in salary which was not taxed. As advised by Mr Hamed
they will come to see you with all the details. ……….”.

• From Bhavesh Patel to Sanjay sending calculations done by KRA on tax payable by S K D Shah and R Shah dated 9 May 2005:

“Please see these attachments. I have not understood their calculations. I think these people are mad. The amounts they are
asking us to pay is so crazy. Anway, please give me advice on what I should do with these idiots”

• From Sailesh Shah of Creative Innovations Ltd forwarding an e-mail of Creative Innovations Ltd employee to Sanjay dated 10 January
2005

“ Sanjay for your info and guidance …… It seems things are getting difficult.

Contents of e-mails being forwarded is “ As you are aware, recently we have got ourselves in trouble with BV and customs due to
documentation declarations. We believe Melvin has briefed you on what counter measure we took in order to get the containers
moving and meet BV requirements. We need to highlight to you that we actually put ourselves at risk by sorting the documents
with customs. We have consulted our group Financial Controller who gave his personal guarantee to the customs and also paid
some fees to the customs officers which we will need you to assist in paying…………… This is not healthy for KHIND as a public
listed company and if we are found out to do double declaration, we will be black listed by the customs and our export licence
might be suspended………………….”

• From Paolo a memo to Amin and Manoj Shah of KTL dated 4 October 2004. Below is relevant extraction from the memo

“As agreed with Kumho will make shipment of the goods in the following manner

For all passenger and light truck sizes (those not listed in the Pro-forma Invoice No……) will be shipped without any inspection
and in the following manner…………………………… Description: General Merchandise

21
 For all Truck Tyre sizes, the following methodically will be used……………….. At the time of loading Kumho must ensure that
Bureau Veritas present to do a physical count as per packing list(VERY INPORTANT ONLYPACKING LIST TO BEDECLARED
TO BUREAU VERITAS as pricing is between Parmex and KingswayTyres nothing to do with Kumho”

• From Rakesh Singla of KTL to Sanjay dated 23 April 2005 on suggestions to evade tax on Kamal Properties Ltd, a company in which
Sanjay is a both a shareholder and a director. The detailed suggestion to evade tax include :

1. Plan to create expenses such as repairs and maintenance, salaries and interest to reduce rental income and

2. Plan to show rental income at lower level which include asking for rent in two parts (cash and cheque) at the time of
negotiation

• From Paolo to Sanjay dated 17 March 2004:

“I keep on receiving from Bureau Veritas requests for inspection for tyres tube and flap on Wilson logistics/Capricorn etc etc of
course all of them have been applied by Cargo Distributors!!!! I do not know what to say to them since they want to inspect the
goods. Please let me know.”

It is possible that Paolo means that using Cargo Distributors Ltd as the consignee was creating a problem with the inspectors such that
they inspected the shipment where the consignee was. It appears that as a result of this concern, the consignee for the pending
shipment was changed to Nairobi Procurements Ltd and the shippers advised accordingly by Paolo.

22
1 Other unusual matters
Below are extracts of some of the e-mails that indicate unusual operations at CHB:
Unclaimed deceased money taken into bank’s income
• E-mail from Purnima Shah of CB Kisumu branch to David Okinda of CB dated 13 march 2006:
“ We would like to request to activate account 09-100008 Masakhalia Kangu James which has gone dormant. The said person is
deceased and has no one to claim the balance. We would like to close the account and credit the balance to our income account”

The response from David Okinda dated 13 March 2006 was:

“ The account has been activated”

Based on the above, it is possible that CB has the practice of taking into its income account the unclaimed deceased monies. Further
investigation work needs to be done to establish this.

Transactions on verbal instructions

• E-mail from Fred Shitakha of CB Mega Branch to Arun Jain regarding CA 01-000249 Italian Stlyes Ltd dated 25 May 2006:
“As per our telephone conversation, I have paid cash Kes 2,000,000/= from the above account to Monia Posti. Please be advised “

Arun responded on the same day as “OK confirmed”

Further investigation is required to establish if the above transaction was ever supported by appropriate documents and accounting entries
and to establish if there CB has a trend of carrying out banking activities on verbal instructions of its management.

Large amounts of cash remitted to PGT through Central Forex Bureau

• E-mail from B.Parmer of PGT to Sanjay dated 14 October 2004:
“We have received AED 200,000 (US$ 55,000) from Central Forex Bureay today”

Sanjay responded on 15 October 2003:

“Please apply this to clear off the transactions for the cheque you had issued on behalf of John Harun for AED 200,000”

23
 • E-mail from B.Parmar to Sanjay dated 13 March 2004:

“We have received US$100,000 today from Central Forex Bureay”

Further investigations is required to understand these remittances and the relation if any to CHB

Bank certificate for the purpose of obtaining Visas

Purnima Shah works at CB in Kisumu. She wrote an e-mail on 10 May 2006 addressed as “Dear Mr Shah”. It is not clear who the e-mail is
sent to. She requested for a certificate of KShs 7m to enable her show this to the Australian High Commission for the purpose of obtaining
visas for her two sons. The extract of her e-mail is as follows:

“Dear Mr Shah,

……………………. I need assistance for my two sons. They have been selected for higher studies in Australia. To enable them us to
obtain VISA, Australian High Commission wants a statement for Ksh7 Million.

I would request you if you could issue me a certificate for KSh7 Million only as a matter of record and for their VISA purpose. I am
ready to produce any documents that you want for that. …………………………… As you know as a salaried individual, it is difficult
for us to accumulate Ksh 7 Million and show in savings or deposit account…………………… Sincerely yours Purnima Shah”

Further investigations is required to establish if a bank certificated was issued from CB to the Australian High Commission for the purpose of
obtaining Visas and if so, how this was accounted for in the records of CHB.

Indication to reword loans given so as to disguise violation of CBK regulations on lending limitation based on the share capital of
CHB.
There is an e-mail dated 14 March 2006 from unknown sender as follows:

“Sanjay we need to re-word the I st para as the bank can not lend 193. something like “including the deposit of Ksh.80m”

Sanjay responded on 15 March 2006 to unknown recipient as follows:

24
 “ ………………………….b) or we redo and give another letter. We just need to be careful that we do not state we are loaning 193
million as we cannot under the CBK Act, as our share capital isn’t sufficient. We can state that we undertake to pay 193 million which
is different from we loaning 193million. ……………………………………..”

Deposits and liabilities in foreign bank accounts

The table below is a summary of the deposits and liabilities on personal accounts of the Shah brothers and those of the 3 off-shore companies
at specific dates.

Bank Account Account Assets Liabilities Date of the

No. assets/liabilities
position

Citigroup- Sanjay Shah &/or 305723 US$72,740 ₤442,051 Assets and liabilities
London Manish Shah &/or ₤ 430,340 position as at 27 April
Manoj Shah 2006 based on e-mail
??? US$658,777 confirmation from
Foreman Corp ₤998,262 Michael Glen of
Citigroup
American Sanjay Shah &/or CIF 63413 Assets unknown but Request for guarantee of
Express Manish Shah &/or ₤700,000 and US$600,000 to Kumho
Bank- Manoj Shah US$400,000 Tyres Co. And US$1m to
Singapore transferred from Transityres
ABN on 29/10/04
and 15/3/05
respectively

25
Bank Account Account Assets Liabilities Date of the
No. assets/liabilities
position

Deutshe Kingsway Tyres 2005900 ₤1,056,900 Assets and liabilities

Bank(Suisse) Ltd position as at 7 April
SA 2006 based on e-mail
2006027 ₤1,107,000 confirmation from
Proudview US$1,265,000 Monika Haesh of
Investments Ltd US$500,000 Deutshe Bank
ABN Amro Sanjay Shah &/or FDR ₤2,440,093 Facilities to Parmex Ltd Assets and liabilities
Manish Shah &/or US$1,292,514 for US$4,468,631 position as at 12
Manoj Shah October 2004 based
US$1,218,223 Facilities to Epsom for on e-mail confirmation
Epsom Holdings US$1,050,000 from Gail Lawrence of
Corp ABN Amro
SG Hambros Kingsway Tyres ??? US$3m deposit to ???
Bank & Trust Limited secure guarantee
Ltd Epsom Holdings facilities
Corp

26
 SUMMARY OF COMPANY SEARCHES
APPENDIX 2A
SHAREHOLDERS OF CHARTERHOUSE BANK LTD

Share Capital Shares Certificate of

S/No. Company Name Registered Office Name of Directors Shareholder's Name
Authorised Issued Held Incorp. No. & Date

Nakumatt
1 Investments Ltd
LR No. 209/7130 Hotnet Ltd (see below) KShs.250,000,000 Snowdale Capital Ltd 2,440,000 C 34221
"Kirungii" Ring Rd Atulkumar M Shah 2,500,000 shares Gismass Trust Nominees 1
Westlands KShs 100 2,440,003 shares Atulkumar M Shah 1 2 April 1987
PO Box 30029 each Narshi M Shah (deceased) 1
Nairobi Total 2,440,003

Seiko L/R No:209/2468 Sanjay R Shah Shs.1,000,000 Sanjay R Shah 1 C 70023

2 Investments Ltd University Way Kamal R Shah divided into 2 shares Kamal R Shah 1
PO Box 11324 1,000 ordinary 2 April 1996
Nairobi shares of
Shs.1,000
each Total 2

LIKELY RELATED COMPANIES

Kingsway Holdings L.R. No: Nitin M Shah Shs.100,000 Sushila R Shah 1 C 33749
3 Ltd 209/2468 Manoj R Shah divided into 5 shares Nitin M Shah 1
University Way Sanjay R Shah 1,000 shares Manoj R Shah 1 5 January 1987
PO Box 11324 Manish R Shah of Shs.100 Sanjay R Shah 1
Nairobi each Manish R Shah 1
Total 5

Kingsway Investment L.R. No: Nitin M Shah Ksh:10,000,000 Sushila R Shah 10,000 C 33751
4 Ltd 209/2468 Manoj R Shah divided in to 50,000 shares Nitin M Shah 10,000
University Way Sanjay R Shah 100,000 shares Sanjay R Shah 10,000 5 February 1987
PO Box 11324 Manish R Shah of Shs.100 Manoj R Shah 10,000
Nairobi each Manish R Shah 10,000
Total 50,000

Kingsway Group of L.R. No: Manish R Shah Shs.100,000 Sushila R Shah 1 C 52252
5 Companies Ltd 209/2468 Manoj R Shah divided in to Manish R Shah 1
University Way Sanjay R Shah 1,000 shares 6 shares Manoj R Shah 1 21 October 1993
PO Box 11324 Nitin M Shah of Shs.100 Sanjay R Shah 1
Nairobi Ashwin P Shah each Nitin M Shah 1
Ashwin P Shah 1
Total 6

Page 1 of 5
 Share Capital Shares Certificate of
S/No. Company Name Registered Office Name of Directors Shareholder's Name
Authorised Issued Held Incorp. No. & Date

Creative L/R No: 209/2468 Sailesh K Shah Shs.2,000,000 Kingsway Investments Ltd 10,000 C 49962
6 Innovations Ltd University Way Kamal R. Shah 20,000 shares Sailesh K Shah 10,000
PO Box-49644 Shs.100 each 20,000 shares 23 June 1992
Nairobi
Total 20,000

Kamal L/R No: 209/2468 Manish R Shah Shs. Manish R Shah 10,000 C15821
7 Properties Ltd University Way Manoj R Shah 5,000,000 Manoj R Shah 10,000
PO Box 11324 Sanjay R Shah divided into 50,000 shares Sanjay R Shah 5,000 26 May 1979
Nairobi Ashwin P Shah 50,000 shares Nitin M Shah 5,000
of100 each Kamal R. Shah 2,500
Nishit R Shah 2,500
Vikas K Shah 5,000
Sushila R Shah 10,000
Total 50,000

Kingsway L.R. No: Kingsway Holdings Ltd. Shs. 100,000 Kingsway Holdings Ltd. 999 C 33750
8 Properties Ltd 209/2468 Growth Management Ltd divided into Growth Management Ltd 1
University Way 1,000 shares of 1000 shares 5 February 1987
PO Box11324 100 each
Nairobi
Total 1,000

Kings L.R. No:.NO : Manish R Shah Shs. 100,000 Manish R Shah 20 C 31254
9 Investment Ltd 209/2468 Ashwin P Shah divided into 100 shares Manoj R Shah 20
University Way Nishit R Shah 100 shares of Nitin M Shah 20 20 February 1986
PO Box11324 1,000 each Ashwin P Shah 20
Nairobi Sushila R Shah 20

Total 100

Growth L/R No:209/2468 Manish R Shah Shs.100,000 Manish R Shah 1 C 51330

10 Management Ltd University Way Sanjay R Shah divided into 2 shares Sanjay R Shah 1
PO Box 11324 Bharat Tank 1,000ordinary 6 November 1992
Nairobi Mahendra Shah shares of
Shs.100 each Total 2

Page 2 of 5
 Share Capital Shares Certificate of
S/No. Company Name Registered Office Name of Directors Shareholder's Name
Authorised Issued Held Incorp. No. & Date

Crosslynx Ltd L/R No:209/167/4/2 Antony O Kinaiyia Shs. 100,000 Anton O Kinaiyia 1 C 93013
11 (shareholders are Westlands, Muthithi Rd Jecinta W Kageni divided into 2 shares Jecinta W Kageni 1
employees of one of PO Box-10248 1,000 shares of 1 March 2001
the companies owned Nairobi Shs.100 each
by Sanjay, Manish &
Manoj Shah)
Total 2

Greenhills L/R No:- 91/418 Hamed Ehsani Shs.10,000,000 Kingsway Investments Ltd 50,000 C 42829
12 Investments Ltd Limuru Rd Mehraz Ehsani divided into 100,000 shares Hamed Ehsani 25,000
PO Box300 Manish R Shah 100,000ordinary Mehraz Ehsani 25,000 26 April 1990
Village Mkt Manoj R Shah shares of
Nairobi Shs.100 each
Total 100,000

Nu Metro LR No. 91/923 Brian C Pottinger KShs.10,000 Hameco Ltd (see below) 50 C 96156
13 (Kenya) Ltd The Village Mkt Mehraz Ehsani 100 shares Nu Metro (EA) Ltd 50
PO Box 226 Hooman Ehsani KShs 100 100 shares 1 November 2001
Village Mkt, Nairobi Hermanus C Trollip each
Anthony Ward
Hamed Ehsani
Sipho Sithole
Sanjay R Shah
Manoj R Shah Total 100

Hameco Limited L/R No:- 91/148 Hamed Ehsani Shs.20,000 Hamed & Mehraz Ehsani 500 C 13452
14 Limuru Rd Sanjay R Shah divided into Sanjay & Manish R Shah 500
PO Box300 1,000 ordinary 1000 shares 29 March 1975
Village Mkt shares of
Nairobi Shs.20 each
Total 1,000

Market Masters LR No. 91/418 Faranak T Ehsani Shs.100,000 Faranak T Ehsani 1 C 51688
15 Ltd Limuru Rd Kamal R Shah divided into Kamal R Shah 1
PO Box 100 Hooman Ehsani 1,000 ordinary 2 shares 1 December 1992
Village Mkt, Nairobi (alt. to Faranak) shares of
Shs.100each
Total 2

Page 3 of 5
 Share Capital Shares Certificate of
S/No. Company Name Registered Office Name of Directors Shareholder's Name
Authorised Issued Held Incorp. No. & Date

Ken Kip Ltd LR No. 209/2468 Hon Ezekiel Bargentury Shs.1,000,000 Hon Ezekiel Bargentury 340 C 38884
16 University Way Manish R Shah 1,000 ordinary Manish R Shah 330
PO Box 11324 Mehmood Rehmat Khan shares of 1000 shares Mehmood Rehmat Khan 330 29 November 1980
Nairobi Shs.1,000 each

Total 1,000

Yellowstone LR No. 12596/39 Kamal R Shah Shs.20,000 Kamal Shah 1 C 42426

17 Enterprises Ltd Enterprise Rd Mitesh N Shah divided into 200 2 shares Mitesh Nemchand Shah 1
PO Box 41986 shares of Total 2 6 March 1990
Nairobi Shs.100 each

NON RELATED COMPANIES

Hotnet Ltd KShs.2,000 C 87016

18 Details not available in the company file at the 200 shares of Details not available in the company file
registrar's KShs10 200 shares at the registrar's 9 September 1999
each

AUA Industria LR No. 209/625 Dahyalal V Taylor KShs.10,000 Dahyalal V Taylor 1 C 81295
19 Ltd Standard Blding Udhayan V Taylor 100 shares of 3 shares Udhayan V Taylor 1
Kimathi Street Amar V Taylor KShs100 Amar V Taylor 1 28 July 1998
PO Box 41159 each
Nairobi Total 3

Dalbit Investments LR No. 209/656 Kimaru Ndegwa F36/2001

20 Ltd (company Moi Avenue Mohamed Fizan
Details not available in the company file at the registrar's
incorporated in British PO Box 30756 Khatib Ashraf 19 July 2001
Virgin Islands) Nairobi

Kabuito Uniafric House Rajendra J Patel KShs.200,000 Rajendra J Patel 51 C 19431

21 Contractors Ltd Koinange Street Jitendra J Patel 10,000 shares of Jitendra J Patel 50
PO Box 14054 Rasmikant M Patel KShs 20 108 shares Rasmikant M Patel 5 30 July 1979
Nairobi each
Total 106

Page 4 of 5
 Share Capital Shares Certificate of
S/No. Company Name Registered Office Name of Directors Shareholder's Name
Authorised Issued Held Incorp. No. & Date

Kings Chemist LR No. 1870/4X/162 Jitendra Shah KShs.100,000 Jitendra Shah 800 C 29563
22 Ltd Mpaka Rd Surbhie Shah 1,000 shares of Surbhie Shah 200
Westlands KShs 100 1,000 shares 9 May 1985
PO Box 49847 each
Nairobi Total 1,000

Sunmatt Ltd LR No. 1870/11/28 Sundip A Shah KShs.2,000 Sundip A Shah 33 C 48263
23 Lower Kabete Rd Tushar A Shah 100 shares Tushar A Shah 34
Westlands KShs 20 100 shares Mita Shah 33 10 December 1991
PO Box 14843 each
Nairobi Total 100

Ukwala LR No. 209/2794 Vijay Jayantilal KShs. 75,000 Vijay Jayantilal Dodhia 300 C 64606
24 Supermarket Ltd Haile Sellasie Ave Rohit Maganlal 750 shares Rohit Maganlal Shah 450
PO Box 34667 Nitin Velji KShs 100 750 shares 27 April 1995
Nairobi Anilkumar Jayantilal each
Nemchand Kanji Total 750

Yellow House LR No. 11646/12 Samson W Njoroge KShs. 50,000 Samson W Njoroge 2,499 C 61237
25 Ltd Ridgeways Rd Salome W Njoroge 2,500 shares 2,500 shares Salome W Njoroge 1
PO Box 74694 KShs 20 22 September 1994
Nairobi each
Total 2,500

Page 5 of 5
 215t July 2006

Our Ref: KNCHRICOF/47

Your Ref: CHB/KNCHRlCN1/06

Mr. S. Shah
Director, Charterhouse Bank
th
6 Floor, Longonot Place
Kijabe Street
NAIROBI

Dear Sir

RE: IN THE MATTER OF THE PERSONAL SECURITY OF PETER GEORGE

ODHIAMBO AND TITUS MWIRIGI RELATING TO EVENTS SORROUNDING
CHARTERHOUSE BANK.

We acknowledge receipt of your letter on the above subject dated 19th July 2006 the
contents of which we have noted.

Your contention that we have condemned and scandalized you and the fellow directors of
Charterhouse Bank without due recourse to the rules of natural justice has profoundly
surprised us. We therefore invite you to read yet again our letter of the 12th July 2006
upon which you should notice that the only concern we have with the Police
Commissioner is the personal safety and security of Messrs Peter Odhiambo and Titus
Mwirigi.

We do reiterate as a matter of fact that Mr. Peter Odhiambo has since ih- July 2006
received a lot of telephone calls from people warning him of their capabilities to harm
him on account of the events that surround Charterhouse Bank. Peter Odhiambo 's and
Titus Mwirigis fears for their safety are real and not flights offancy.

We take this opportunity to clarify further our involvement in this matter which is also
premised on Mr. Odhiambo's attempted arrest by police officers relying on documents
that had not been executed by the present Charterhouse Statutory Manager Mrs. Rose
Detho. This is the basis upon which we asked the Commissioner of Police to investigate
how officers from Central Police Station could purport to effect an arrest based on non-
authentic and unenforceable documents.

From the foregoing, by a copy of this letter, we are forwarding to the Commissioner of
Police the names of the two officers from Central Police Station who went to the Central
Bank of Kenya and attempted to arrest Mr. Odhiambo on 7th July 2006 as:
 i) Superintendent Muya Nyale the District Criminal Investigations Officer
(DCIO),
ii) Inspector Jaliwa.

Sincerely

Maina Kiai
Chairman

CC: Maj. General Hussein Ali, EBS

Commissioner of Police
-:
, .

CHARTERHOUSE BANK LTD

P.O. Box 43252, 00100 Nairobi. Kenya· 6th Floor, Longonot Place, Kijabe Street
Tel: (254020) 242246 - 53' Fax: (254020) 219058' E-Mail: info@charterhouse-bank.com

Our Ref: CHB/KNCHR/CN1/06

Wednesday, July 19, 2006.

The Chairman
Kenya National Commission On Human Rights
st
1 Floor, CVS Plaza, Lenana Road,
P.O. Box 74359 - 00200
NAIROBI.

ATTENTION: MAINA KIAI

Dear Sir,

RE: IN THE MATTER OF YOUR LETTER REF: KNCHR/COF/47 DATED 12th

JULY 2006.

The vision of the Kenya National Commission on Human Rights (KNCHR) is to

create a strong vibrant human rights culture founded on equality and social justice
for all. The KNCHR prides itself of being possessed of eight core values:

1. Independence
2. Accessibility
3. Humility
4. Professionalism
5. Gender diversity equity and equality
6. Accountability
7. Participation
8. People centred approach.

By employing these core values, KNCHR seeks to upon receipt of a complaint

conduct investigations and where necessary seek redress on behalf of an
individual or group.

- 1-
Having stated the above, we hereby acknowledge receipt of your letter Ref:
KNCHR/COF/47 dated iz" July 2006 on which is appended the signature of Mr.
Maina Kiai the Chairman of KNCHR.

We would like to start by pointing out that the directors of Charterhouse Bank to
whom you have addressed individually the said letter are perturbed, stunned and
greatly concerned especially by the contents of your last but one paragraph which
states:
tlMay we also add that should anything untoward compromise
the safety and security of Mr. Odhiambo or Mr. Mwirigi, then
suspicion witt remain that those responsible are the owners of
Charterhouse Bank, their agents and/or some elements within
the police force. 11

Equally flabbergasting are the contents particularly those of your 2nd, 3rd, 4th, 5th,
th
11 , 1~th and 13th paragraphs which state:

"The events surrounding this issue are that in April 2004, when Mr.
Odhiambo was employed as the Internal Auditor at Charterhouse Bank, he
came. across information touching on various economic crimes that
included money laundering, tax evasion, violation of the Banking Act and
the Central Bank of Kenya Act, being perpetrated by the owners and
management of the bank.

He relayed this information to the Kenya Revenue Authority in the same

month. In August 2004, this information was transmitted to then Minister for
Finance Hon. David Mwiraria with a promise of strict confidentiality. Based
on this information, Hon. Mwiraria through the Central Bank of Kenya
constituted an Inter Agency Task Force chaired by the - Kenya Anti-
Corruption Commission to carry out a detailed investigation into the
violations cited in that report.

During the course of the investigations by the task force, Mr. Odhiambo
assisted the Task Force with additional information including the forensic
audit on Charterhouse Bank. In August 2004 as the work of the task force
was ongoing, Mr. Odhiambo was advised by his contacts within the Task
Force to resign his job at Charterhouse Bank and in view of his cooperation,
the Central Bank of Kenya offered him alternative employment in February
2005 in the Internal Audit Department.

-2-
 His role in assisting the Task Force was regrettably leaked to the owners
and the management of Charterhouse Bank around November 2004 and as a
result he started receiving anonymous and threatening phone calls through
his mobile phone. He also noticed several suspicious persons inquiring
about where he lived. Owing to these inquiries, Mr. Odhiambo was forced to
dispatch his family-his wife and two children- out of the country. Since then,
he has been forced to move houses thrice.

Article 9 of the International Covenant on Civil and Political rights provides

for the right of everyone to enjoy security of the person which right is also
guaranteed by Section 70 of the Constitution of the Republic of Kenya.
Every Kenyan is entitled to life, liberty, security of the person and the
protection of law. Now that Messrs Odhiambo's and Mwirigi's personal
safety has become a matter of national concern on account of the events
that surround Charterhouse bank, it is our sincere belief that the police have
a duty to ensure that their right to security of their persons is not infringed.

We further draw your attention to Section 392 of the Penal Code (Cap 63
Laws of Kenya) which imposes a duty on citizens to prevent commission of
crimes by making it an offence to neglect to prevent a felony. It reads:
"Every person who, knowing that a person designs to commit or is
committing a felony, fails to use all reasonable means to prevent the
commission or completion thereof is guilty of a misdemeanour"

In our minds, the KNCHR is expected to be a credible, professional and ethical

body holding custody of human rights protection and mandated to act impartially,
fairly, legally and within the rules of natural justice. It is our fair assumption that
your above quoted letter was a finding resulting from a complaint filed to and
thoroughly investigated by the KNCHR

Our surprise is therefore based on your findings that " ... should anything untoward
compromise the safety and the security of Mr. Odhiambo or Mr. Mwirigi, the
suspicion will remain that those responsible are the owners of Charterhouse Bank,
their agents and/or some elements within the police force."

This finding is ascertained and confirmed by your mighty signature as the

Chairman of KNCHR. The KNCHR in its protection and defence of human rights
and in its administration of justice is only mandated to act within the law,
independently, impartially and without discrimination.

-3-
The rules of natural justice demand that no person be condemned unheard, or
without being accorded a fair opportunity to defend themselves against any
accusation levelled against them. The KNCHR has accused, condemned and
scandalised us under none other than by its Chairman without giving us the
opportunity to respond to any allegations and we are disturbed as to how the
Chairman a lawyer of no mean distinction drew his conclusions without giving both
parties a fair hearing.

It is our contention that the acts, the letter and the findings stated in the said letter
are unreasonable, unfair, discriminatory, biased, scandalous and against the rules
of natural justice as they are based on malicious rumours and allegations and are
in violation of our fundamental rights for the following facts and reasons:

1. Charterhouse Bank is a financial institution, licensed, operating,

controlled, supervised and regulated under the Banking Act and the
Central Bank of Kenya Act.

2. The Central Bank of Kenya (CBK) as the regulator is mandated under

the Banking Act to inspect, supervise, provide a remedy and advise or
eng~ge a professional to undertake any act or action that is required for
a bank to be compliant.

3. The Central Bank of Kenya in performance of its duty brings to the

notice of any commercial bank any violations if they are detected and
the bank is given an opportunity to respond before the CBK takes any
action. .

4. Charterhouse Bank of its own volition and motivated by the need to be

compliant with the Banking Act Cap 488 Laws of Kenya, fhe Central
Bank Act of Kenya Cap 491 of the Laws of Kenya and the Prudential
Guidelines sought to recruit an internal auditor to ensure that all the
bank accounts, documents and operational procedures were in total
compliance with the laws and more particularly the CBK Act and the
Banking Act. Mr. Peter Odhiambo sought employment in Charterhouse
Bank as an internal auditor and during the interview, he portrayed
himself as being capable of undertaking the duties and functions of an
internal auditor responsible for the bank's audit that is to say, all the
documents transactions, operations and banking related business. He
was supposed to ensure compliance and make recommendations to the
management where necessary.

-4 -
 5. In essence, the custodians of the bank's documents at the
Charterhouse Bank were the internal auditor Peter Odhiambo and the
person in charge of the archives Joseph Maina Gachari.

6. From the time that Peter Odhiambo was employed, he at all times
informed the management that he was up-to date with his audit, that he
had audited and continued to audit all the bank books, documents,
operations and transactions and everything was compliant with the
Banking Act, the Central Bank of Kenya Act and the Prudential
Guidelines. Even where an issue would be raised by the Central Bank
Inspectors, it is Peter Odhiambo who would be the first person to
respond before the matter came to the attention of the management or
board.

7. If there were any or if there existed any violations or wrong doings at

Charterhouse Bank, Peter Odhiambo either caused them or deliberately
failed to rectify them or where he was not able to rectify, to bring them to
the attention of the management or the board or to the Central Bank of
Kenya Inspectors who have always been inspecting Charterhouse Bank
from time to time as provided by the statutes.

8. Sometimes in the year 2003, the management of Charterhouse Bank

became aware that its data and diskettes to the Clearing House were
being tampered with to the detriment of the bank and its customers.
This being a major security breach, the matter was reported to the
Central Bank of Kenya, the Banking Fraud Investigations Department
but no one was apprehended.

9. At the same time the bank discovered that its Back-up data and
software were missing. This time a report was made at the Central
Police Station but no action was taken. The management then called
and interrogated Mr. Lameck Wangumba, who was in charge of the
Information Technology and computer systems at the bank. From his
response and behaviour, it became apparent that he knew and/or was
responsible for the theft of the bank's back-up data and the software.

10. As soon as Mr. Wangumba knew that the police had been involved, he
quickly left the bank just before Christmas of December 2003.

-5-
 11. With this information and experience, the management became alert
and discovered that although Lameck Wangumba had left he was in
constant touch with Peter Odhiambo.

12. Sometimes in mid 2004, the bank received information that someone
was stealing and removing documents from the bank. The management
directed Peter Odhiambo to investigate, audit and to establish the extent
of the theft and what documents had been stolen and whether it was
true or not. He was required to put into place measures to ensure that
confidential documents were not stolen or interfered with and if he had
any difficulties, he was supposed to report and/or make
recommendations to the management.

13. At all times, Peter Odhiambo confirmed to the management that he had,
perused and examined all the documents and transactions and that all
were in compliance and that the allegations of theft and/or remov~1 of
documents from Charterhouse Bank was false.

14. Being the internal auditor, the banks documents custodian and a
member of the senior management team, the bank had no reason not to
believe him.

15. However, the information about documents being stolen and removed
from the bank increased. Whatever was stolen was allegedly being
taken to the Central Bank of Kenya and to the Kenya Revenue
Authority. The bank engaged the services of a private investigator who
discovered that the documents were actually being stolen and removed
from Charterhouse Bank by Peter Odhiambo and another officer called
Chege from the foreign exchange department and were being delivered
to certain people both at Kenya Revenue Authority, the Central Bank of
Kenya and at various hotels within the city.

16. After receiving the Investigator's report, the bank called in the police and
Peter Odhiambo left the bank in a huff when he discovered that the
police had been called in respect of the stolen documents and he had
been identified as the culprit.

17. The private investigator ascertained that Peter Od hiambo and Chege
were frequent visitors at the Central Bank and the KRA offices.

-6-
 st
18. On 31 August 2004, a contingent of officials from CBK accompanied
by the Governor's son Mr. Silla Mullei, Mr. Melville Smith and others
including officers from the Kenya Anti Corruption Commission (KACC)
and police officers raided Charterhouse Bank demanding certain
specific documents in respect of certain specific accounts running up to
and approximately 260 accounts.

19. At the bank it was discovered that during the activities of these raids,
the raiders were constantly receiving directions on their mobile phones
which seemed unusual. The raiders were looking for specific documents
which strangely enough were found to be missing as they had been
stolen.

20. The management summoned one Joseph Maina Gachari being the
person in charge of the bank's archives to explain why the documents
that were being sought were not being made available. Mr. Gachari
was ordered to ensure that the documents were found and handed over
to the CBK team as they had requested.

21. Mr .. Gachari informed the management that the documents that were
being sought were among those that had been transferred temporarily
to the bank's archives during the bank's expansion. He was directed to
go to the archives and bring the documents and the management gave
t
him until 1s November 2004 to produce all the documents. When asked
why the documents had still not been availed, he said he was unable to
locate them and suggested that Peter Odhiambo 'would know where the
documents were since they were not in the archives and he was the
only other person who' had access to the archives. Given that Peter
Odhiambo had already quit employment, Mr. Gachari was suspended
from work but he never returned.

22. Immediately after Gachari was suspended, on zo"September 2004, in

some rather inexplicable circumstances, the banks archives caught fire
and everything in the archives burnt down. It is instructive that the
location of the archives was only known to Peter Odhiambo, Maina
Gachari, the Managing Director and one other manager. The matter
was reported to the police but the cause of fire was never established
although arson was suspected.

23. From the description of the documents that had been stolen from the
bank, it is the bank's view that this had been a calculated conspiracy to

-7-
 remove account opening documents of certain accounts, files of certain
clients and to pluck out vital documents from the files that could later be
used as a weakness to portray Charterhouse Bank as being in violation
of the "Know your Customer" which can only come about by way of
missing documents.

24. After the raid, the investigation and the inspection, the bank was not
able to produce the missing files nor any of the missing documents that
were being demanded by the CBK team but we were to later learn that
all the documents that were specifically being requested had been
downloaded, plucked out discriminatively from various files and for
these unfortunate events, the bank was found to be in violation and
fined KShs. 1,000,000/-.

25. Up to this point in time, the bank management had put the unpleasant
issues at the back of their minds and moved on and the bank continued
with its normal operations and enhanced its security management
systems or so they thought.

26. Unfortunately, towards the end of the year 2005, it was discovered that
one James Muia a current employee of Charterhouse Bank was
constantly being seen in the company of Peter Odhiambo and Maina
Gachari. The bank management suspected that he might try to steal
documents again from the bank, but decided not to sack him but to put
him under surveillance since the Police Officers from the Central Police
Station had informed the management that unless they had proof or
caught him red handed with the documents, there was nothing that the
police could do. He is still an employee of Charterhouse Bank even as
we write to you. -

27. From the beginning of the year, it was discovered that SUSpiCIOUS
activities were taking place between James Muia and yet another
employee one David Okinda who was now in charge of the IT Systems.
The management started investigating their activities and it was
discovered that some accounts and data was being tampered with and
that at certain times, there was a logging of the bank's data for
inordinate periods of time and it was unclear why for example David
Okinda would dwell on certain accounts for in excess of three hours.
When the bank called in an expert, it was confirmed that there was
external intrusion into the bank's system where data was being

-8-
 tampered with and lor being transferred elsewhere and after he was
discovered, Mr. Okinda left employment.

28. From the year 2004 to-date, and at all material times, the bank
considered all the unfortunate incidents as activities of some disloyal
and greedy employees who were doing all this for their own personal
gain and it never occurred to us they were doing it to injure the bank.

nd
29. From 2 April 2006, the bank started being portrayed negatively in the
th
media and on 24 May 2006 certain copies of letters were delivered by
courier to Charterhouse Bank. The letters turned out to have been sent
by anonymous people who had circulated the said letters to various
people including our bank. They were letters that had been removed
from our archives andlor stolen from the government registry.

30. The bank's management looked at the letters and decided that it was
. proper that the matter be reported to the police and that the original 'set
handed over for investigations.

31. The Managing Director Mr. Sanjay Shah personally reported the matter
to the police and was subsequently asked to record a police statement.

32. Upon further perusal of the said numerous letters a rather serious
discovery was made which made it very clear that what the bank was
facing was a well calculated, planned and a deliberate conspiracy to
bring Charterhouse Bank down.

33. Following were the letters:-

(i) A letter dated November 2004 written by Titus Mwirigi stating that
before the task force was established, certain documents had
been gathered from Charterhouse Bank prior to the
establishment of the task force and then the documents were
made available to a particular member. It is indicated that the
source was one Joseph Maina Gachari.

(ii) A document titled "Memorandum of Meetings in support of Fee

Note. Under the subject Consultancy Contract: Titus MWirigi and
CBK" , This confirms that on 2ih October, there was a meeting at
CBK with various heads of department from CBK, KACG,
JUdiciary, Ethics & Governance and some consultants.

-9-
 We found some of the revelations uncanny because in our view such a
gathering was uncommon especially since KACC is supposed to
conduct its business independent of any other arm of the government
as it is also expected to investigate them. Further, the CBK in
performance of its duties and information gathered are all supposed to
be confidential and can only be used for the purpose of the Banking Act.
There is also the mention of consultants. Consultants have no statutory
powers. The most disturbing issue is that in this purported investigation
into Charterhouse Bank, the Judiciary was also incorporated.

34. The documents confirm that on the 30th, October a meeting with
Charterhouse Bank employees for purposes of obtaining documents for
the task force was held and included Titus Mwirigi, Maina Gachari,
Peter Odhiambo and Joseph Chege.

5t
35. On 1 November 2004 a meeting at KACC to debrief former employees
of Charterhouse Bank and to assist in preparing for a visit to the bank
by KACC was held and included Titus Mwirigi and Peter Odhiambo.

th
36. On 5 November, working sessions with the Heads of Department from
CBK, Judiciary and Ethics & Governance were held at the Tamarind
Restaurant.

th
37. On 11 November, a meeting was held at KACC offices to review the
final draft and interim report .
.
h
38. On 1i November, a meeting at KACC with Mr. Lameck to decode
computer data on behalf of Kenya Revenue Authority (KRA) was held.

th
39. On 18 November, a meeting between Peter Odhiambo and Task Force
Chairman was held to discuss latest information and to submit a report
on the developments at Charterhouse Bank.

40. The next document is titled "Confidential Schedule of Meetings" among

others, item 4 records the meeting as having been held between the
governor, the deputy governor, Melville Smith, Peter Odhiambo, Titus
Murigi, item 6 was a meeting between the governor, deputy governor,
Melville Smith, Director BFID, Maina Gachari, Peter Odhiambo, Lameck
and Titus Mwirigi.

- 10 -
 41. You will note that the persons mentioned Peter Odhiambo, Maina
Gachari, Lameck Wangumba, Joseph Chege and Titus Mwirigi
contracted as consultants by CBK were meeting in various hotels in the
city including Tamarind Restaurant, Hotel Boulevard, Kengeles
Restaurant, ABC Place and the Gazebo in Upperhill.

42. The most significant issue is item No. 15 where it is stated that Mr.
Lameck, Mr. Ng'eno and Titus Mwirigi met for the purpose of
programming, installing and recalling of data stolen from Charterhouse
Bank.

From the foregoing paragraphs, any reasonable person will come to the
conclusion that the above activities were clearly orchestrated and planned to bring
down Charterhouse Bank.

We are aware of the importance and need for a whistle blower but a whistle
bloweris in our view a person who passes genuine information to the authorities
for investigation and not a person who is hired from the onset to create violations.
The acts of stealing the documents by an employee of Charterhouse Bank in
order to assist in the creation of a violation so that the bank can be raided to
discover the" violations so as to criminalize the bank and the people associated
with the bank is unconscionable, unethical, immoral inhuman and inconsistent with
all rules of civilized behaviour, all laws and human rights principles.

We would want to state here that by a letter written by Dr. Mullei dated 1st March
2005, the bank was punished for the various findings stated herein and from that
date the bank cannot be punished or continue to be harassed after it has already
been punished. Even in your realm a person cannot be punished twice for the
same crime.

Further, it is now apparent and it is confirmed from the evidence that documents
were stolen and removed from Charterhouse Bank with a view to create violations.
The duty to correct all the violations of missing documents as stated in the said
letter of 1st March 2005 was that of the Charterhouse Bank internal auditor and
archivist Mr. Peter Odhiambo and Joseph Maina Gachari respectively.

It is common practice that documents relating to accounts might be misplaced or

may have fallen off the files and it is the duty of the auditor and the archivist to
detect and inform the account holder by asking them to provide copies of the
documents or new ones. Under normal circumstances this would not be an issue
that would be brought to the attention of the Managing Director.

- 11 -
 When the raid was conducted at Charterhouse the Managing Director wrote
complaining to the Minister and the Minister was kind enough to convene a
meeting in his office between CBK and Charterhouse Bank and after the issues
were discussed, the animosity subsided.

Charterhouse is one of the most well managed banks and has nothing to hide.
That is the reason that Charterhouse Bank has not sacked James Muia, because
it wants to see what he is up to. Had we been malicious as Odhiambo and Mwirigi
would have you believe, Muia would have been summarily dismissed but he is still
working at Charterhouse as we write this letter to you.

Mr. Chairman, we would want to thank you because despite all that has happened
in the last two years, no one has brought to our notice any allegations of
impropriety. No matter how off the mark you may be and no matter how incorrect
the inf?rmation provided to you may be, you are the first person to ask for a
response and although this is directed to the Commissioner of Police and copied
to us, we find that we should present to you the sequence of events as they have
occurred and the way that they are.

It may come as a surprise to you as the Chairman of KNHRC that since the matter
erupted in the media, we have written consistently to the persons responsible, the
governor and the minister seeking for an opportunity to tell our side of the story
and correct the deliberate misinformation as demanded by fair play but his has
been in vain.

After the adverse media publicity which started around so"March 2006,
th
inspectors from CBK were sent to Charterhouse Bank on 6 April 2006 and
another contingent of inspectors were sent on the 18th of April. They conducted
their inspection and concluded the inspection towards the end of May 2006
resulting in a CBK report dated 21st June 2006 requiring the management to
respond to issues raised therein by 4th July 2006.

However just as the management was preparing to respond to comply with the 4th
July 2006 deadline, the following day after the report was delivered, Charterhouse
Bank was placed under statutory management on 23rd June 2006 and a statutory
manager took over the management, control and conduct of the business of the
bank.

Mr. Kiai, as a human rights crusader conversant with principles of equity, was that
right and or fair?

- 12 -
Simultaneously, the banks' customers' information which was either stolen and
removed from the bank by the bank's employees at a fee of US$ 300 a day paid
for by the CBK, or information collected by the said CBK Inspectors, all of which
should have been confidential and in the custody of the Central Bank was passed
to unauthorized individuals where it was released to the media and tabled in
parliament. We sincerely believe that the Central Bank of Kenya under Section
32(2)(b) is prohibited from disseminating information to unauthorized persons.

From all the information available, it is clear that Charterhouse Bank data and
software were stolen on the instigation of CBK and KRA and the said banks data
was installed at CBK and KRA more particularly at the behest of Mr. Nduati
without authority or justification.

KRA and Central Bank are professional and ethical bodies which are not expected
to be involved in clandestine activities outside what the statutes authorize them or
be used and/or abused by persons with personal vendettas. They cannot be
involved in activities of pirating, counterfeiting and/or stealing from the institutions
they are supposed to regulate so as to find fault in them. There is a defined and
proper way to get the information that they stole legally without committing the
offences that they have committed.

Charterhouse Bank has noticed that all its large account holders are now being
investigated at the behest of Mr. Nduati with the view of finding violations or faults
against them which is unethical.

It is clear from the adverse and inexorable campaign in the media and elsewhere
that there is a concerted effort to publish and disseminate false and misleading
information against Charterhouse Bank and the Nakumatt chain of supermarkets
on allegations of tax evasion. -

In our view, if Nakumatt is genuinely found to be evading payment of taxes, it

behoves the KRA to enforce collection and it is not the duty of Charterhouse Bank
to compel Nakumatt to pay taxes. There should not be a blanket condemnation
and someone must come out and categorically state what customs taxes have not
been paid, what VAT taxes have not been remitted what corporate taxes, PAYE
and withholding taxes have not been paid. All we have now are allegations hyped
up by a hostile media and to which we have been denied a chance to respond to
and where our attempts have been given a black out.

- 13 -
 At Charterhouse Bank, we wonder, if for instance an account holder has violated
any law, whether it is the account holder who should face the full force of the law
or whether his activities must interfere with other account holders deposits and
rights.

The KNHCR has made various strong statements in respect to the Goldenberg
matter and it is a matter of fact that after the massive theft of colossal amounts of
money that took place at the CBK, the CBK as an institution was not interfered
with but only the persons responsible for the fraud were arrested and charged in
court i.e. the governor, deputy governor and some officers. The said stolen funds
passed through Kenya Commercial Bank and National Bank of Kenya so why was
action only taken against the individuals responsible and there was no clamour to
shut down National Bank or Kenya Commercial Bank?

Charterhouse Bank has no liquidity problem, it is in compliance with the Banking

Act, the Central Bank of Kenya Act and the Prudential Guidelines. The placing. of
the bank under statutory management is contrary to the law and raises serious
human rights issues. This is because ordinary Kenyans who are depositors
and/or creditors are not able to transact their business causing them SUffering and
denying them a decent livelihood.

Corporate entities with deposits in Charterhouse and who transact Banking

business at Charterhouse Bank have been denied access to their deposits. They
have also been denied withdrawals and most cannot even pay wages and salaries
to a large number of Kenyans who in turn are not able to pay their debts or meet
their obligations like paying school fees, house rents, put food on the table etc.
Don't these issues touch on fundamental human rights?

In view of the fact that the statutory manager is not conducting any banking
business, no profit or income will be generated which will result in the statutory
manager taking money from the depositors deposits to meet the daily and monthly
expenses of the bank to the detriment of the innocent depositors for whose
interests the CBK is supposed to protect.

The statutory manager has also started sending employees on leave and with a
view of spending the depositors money has engaged her friends from Price
Waterhouse Coopers to come and re-audit the bank at a fee of over KShs.
5,000,000/- from the depositors money and this is happening immediately after the
conclusion of a CBK inspection and audit exercise, which is suspect,
unconscionable and what to us appears to be a deliberate effort to run the bank
down and thus legitimize its ultimate closure.

- 14 -
 You may also have noticed a current and intensive campaign by notable
personalities, government officials and being aware that CBK was paying
Charterhouse Bank employees US$ 300 to steal documents from the Bank which
led to the irregular placing of Charterhouse Bank under statutory management,
without any legal basis or reason and the freezing of all banking business, it is
clear to us that there is a move to interfere with private businesses and it
demonstrates a well calculated and clear intention of hurting Nakumatt as well.

As the chairman of KNHRC you will note that when we felt that our rights and
those of our depositors and creditors were being violated, as law abiding citizens,
we sought justice from the courts but to our disappointment even as we go to
court, we are aware that when this conspiracy against Charterhouse Bank was
being orchestrated, it is clearly indicated that the judiciary was present as
evidenced by the meeting schedule aforementioned. The results are obvious.

Mr. Chairman, the bank's documents were stolen in the year 2004. No senior
member of Charterhouse Bank has ever made any attempt to contact our former
employees - never. Why should you then allege that we are responsible for their
safety? After they stole the documents and despite having received US$ 300 a
day for those acts, all of them were rewarded with jobs at Central Bank of Kenya,
what interest would we have in them two years later? What is it that they have
done now that we are not aware of, that they want to preempt by making false
allegations? Can't you see you have been duped and are being used?

In our view, and in reference to Section 392 of the PenalCode, it would be most
appropriate for a proper police report to be made so that proper investigations can
be conducted and the truth can be established and the culprits arrested and
charged before a court of law. For the first time in the history of this country we
believe that we have a Police Commissioner who is free of political manipulation.
As you are aware, the law provides for punishment for a person who gives false
information to a person employed in a public office.

It has become exceedingly obvious that there is a concerted effort being

orchestrated by some high powered individuals against Charterhouse Bank and
Nakumatt. These individuals have successfully enlisted the support of certain
personalities in the media houses, some few members of parliament and some
individuals from the civil society movement in a campaign to bring Charterhouse
Bank down and the Nakumatt business.

- 15 -
 We would not be further from the truth if we assumed that the allegations of the
individuals whose security is purported to be at risk are just another attempt to
include you in this adverse campaign against us so as to give it credence because
it is obvious that you have a platform.

Mr. Chairman, as a custodian of the only organ that is supposed to protect human
rights, we would request that you do not join in a vilification and odious campaign
whose origins and cause you are not privy to, that is aimed at destroying and or
violating the human rights of some people whose rights you should also be
protecting.

The KNHRC which you chair is the custodian of human rights and entitlements for
all, which include individual human rights as enshrined in the constitution. We
know you are a long time crusader of human rights, impartiality, fairness, ethics,
rule of law and natural justice.

From ttie facts enumerated above, our simple question to you is, given that the
CBK recruited employees at Charterhouse Bank and paid them US$ 300 per day
to steal documents, software and manipulate data and were later rewarded with
jobs at the Central Bank of Kenya for a job well done which has now enabled CBK
to illegally take over Charterhouse Bank and which has also allowed them to
freeze all manner of business, what further damage can they cause now that they
are in charge, what other information can they manufacture, manipulate and or
plant in Charterhouse Bank to help them achieve their goal of closing it down?

Charterhouse Bank is the first bank in history to be placed under statutory

management even though it has a strong liquidity base, but it is this strong liquidity
base that they are trying to destroy so that they can now claim to close
Charterhouse Bank for lack of adequate liquidity. The prolonged closure and dilly
dallying and chasing away the banks bona fide depositors and creditors are all
meant to discredit the bank, wear the customers down and force them to seek
services elsewhere and therefore simplify their task of the intended closure of the
bank. That is the kind of campaign that you are being dragged into.

If all these protracted activities by CBK and others against Charterhouse Bank and
its depositors and creditors, the witch-hunt, the malicious vilification and adversity
are all happening in broad daylight in a country that espouses democratic
principles, we are left to wonder if these are not fundamental human rights issues,
then what are human rights?

- 16 -
 All the directors of the bank that you have named in your letter are firstly
husbands, fathers, sons, brothers etc. they are human beings who cherish family
values and good morals and are entitled to protection of their human rights too.
What evidence could you have to make you put their names on paper as people
who are threatening the lives of others? Is it that casual to accuse an innocent
person of threatening another's life? Most of the directors do not even know the
people that you are talking about and Mr. Chairman how do you find it so easy to
make allegations such as you have made? We know there is no evidence since
we have never threatened or ever wanted to harm anyone, so how did you decide
that those you named deserve protection and we do not? They stole data, got
good jobs with CBK and have been working there for almost two years and all of a
sudden we are now threatening their lives? Please open up your eyes.

And now that you have made your accusations, since you are the custodian of
observance that human rights are not infringed, tell us Mr. Chairman, where do we
now go for recourse? Who will hear our side of the story? After the accusations,
who wilt protect us and our families since we believe that this is part of the ploy' to
destroy the bank and then come after the directors, where do we now turn for
justice and protection of our own human rights?

Despite your having written to the Commissioner of Police and circulated the said
letter to all the directors of Charterhouse, on Tuesday the 18th July 2006, you
appeared on television commenting on the plight of whistle blowers while in the
same breadth you were defending your organization from allegations of misuse of
funds. You stated that your organization is audited by the Controller and Auditor
General. Your other comment was in the form of praise for Peter Odhiambo for
having been awarded a job at CBK on the purported whistle blowinq against
Charterhouse Bank.

We wish to express out disappointment because on various occasions when you

have appeared on Television talking on the need for protection of human rights,
justice and fairness, you made us believe that you are a fair and impartial person
who adheres to the rule of law, we saw a person who would make a suitable
candidate for appointment as a judge. But from your current utterances on the
electronic media and from the contents of your letter, it is clear that a person who
passes judgment and condemns others on the basis of rumours and allegations
without according the other side an opportunity to defend themselves would not be
competent to arbitrate where fairness, impartiality, rules of natural justice and the
rule of law are mandatory in order to determine issues.

- 17 -
 As a lawyer who has read section 392 of the Penal Code and we would like to
confirm to you that we have been reporting these matters to the police since the
year 2003 to-date. We have unfailingly been reporting that some employees of
Charterhouse Bank were stealing documents from the bank. This is criminal and
we believe that you are quite conversant with the laws that criminalize theft
whether by servant or otherwise. A criminal act remains a criminal act no matter
who the perpetrator is.

By reporting the matter to the police, we did the correct thing. If you had taken the
trouble to ask us, or even sought an explanation from us, after hearing both sides
of the story, we would have helped you to make a well founded opinion and we
are sorry that you did not find it necessary to talk to us.

Again as the Chairman of KNHCR and as a lawyer who has been involved in
crusading for fairness, respect for human rights et ai, we sincerely believe that you
know that a whistle blower is a person who out of a genuine concern and in the
public Interest, reports any illegal activities or wrong doings of his own free will,
without inducement or promises and without malice or ill-will.

Peter Odhiambo was a senior officer of Charterhouse Bank who together with
others were "employed by Charterhouse Bank to perform the duties that make a
bank compliant with the relevant laws. It was the duty of Peter Odhiambo to audit
this process at a salary of over KShs. 100,000.00 per month. He was thus running
his internal audit department without much supervision and or interference.

We are not sure whether you are aware that he was being induced by certain
other individuals to steal the banks documents at a lucrative fee of US$ 300 a day.
Surely, working for these people at a rate of US$ 300 a day for 20 days, in a
month he would make a side earning of approximately KShs. 400,000/- per month
on top of his salary and with a further incentive of a job at CBK after perfecting the
stealing, this would be hard to pass up. Is this whistle blowing in your opinion?

Our records show that Mr. Titus Mwirigi who was also contracted under a similar
fee of US$ 300 per day is given as Odhiambo's referee in his employment
records. Are these people what you term as whistle blowers and for whom you
are actually asking the state to further provide for them?

Further, since all the four purported whistle blowers are all former employees of
Charterhouse Bank, it cannot be humanly possible that the whistle blowers who
attract attention are all found or are from this bank.

- 18 -
 There is clear evidenos that these people commilled a crime for a fee and/or
reward and we have continued to report these matters to the police. It is also
clear from your letter that you are well conversant with the full details and
informationpertaining to the directors and shareholders of Charterhouse Bank. It
is therefore obvious that it is the directors whose lives are purportedly in danger
and not those of the persons that you mention in your leller. A person who steals
documentsfor money is also capable of killing for money.

By a copy of this letter, we the directors and shareholders of Charterhouse Bank

request that the Commissioner of Police do provide us with adequate security as it
is obvious that our lives may be in danger given the magnitude of the conSpiracy
against us which seems to be snow-bailing.

You were here when the commission probing the Goldenberg Scandal was taking
place and where Mr. David Munyankei testified. Your praises for the CBK cannot
be genuine as it is the Central Bank that sacked Munyankei the CBK never
reinstated him. But ironically instead, they can contract Peter Odhiambo and
company at US$ 300 each per day and with promises of plum lucrative jobs at the
CBK once the job is done.

As a human rights activist and the Chairman of KNHCR, is this discrimination, is it

fair, or what is it in your opinion? In Our view this boils down to abuse of office
and/acts done for personal gain.

We sincerely hope that in respect of the property belonging to Charterhouse Bank

which was stolen by these people i.e. data, software, files, documents etc. the full
force of the law will be brought to bear on the perpetrators of the theft and so that
we can recover our property.

As we come to the conclusion of this letter, we cannot belabour the profundity of

our pain at the remote possibility that you may just have been recruited by these
people who we believe have been stealing documents from our bank and are now
using your organization to legitimize their illegal acts, by seeking protection to
make something illegal look good in the eyes of the public who will be arguing that
if your organization has sanctioned their acts, then surely the other side is
necessarily guilty.

We believe that civil societies exist for public good and should never be used to
injure or hurt innocent people without justification or reason. They exist for the
good of humankind, a/l humankind.

- 19 -
 We are therefore unable to demand any apology from you or your organization but
we hope that once you have read the facts stated herein, your conscience and the
objects of your commission will guide you towards the truth, and like Jesus said,
the truth shall set you free.

We write to you this letter being reminded of the words of the Late Honourable
Elijah Mwangale during the J M Commission of inquiry who said that the hyena
who spoke to the rock commented that 'even if you don't respond, I have told
you and I know you have heard me'.

Yours faithfully,

.
S.SH~
DIRECTOR

CC: Major General Hussein Ali, EBS

Commissioner of Police

Hon. Martha Karua, EGH, MP

Minister for Justice & Constitutional Affairs

Hon. Amos Kimunya, EGH, MP

Minister for Finance

Hon. John Michuki EGH, MP

Minister of State in the Office of the President

Hon. Amos. S. Wako, EGH, EBS, SC, MP

Attorney General of the Republic of Kenya

Mrs. Jacinta Mwatela

Governor of the Central Bank of Kenya

Justice Aaron Ringera

Director, Kenya Anti-Corruption Commission

- 20-
 Mr. Michael Waweru
Commissioner General, Kenya Revenue Authority

Ms. Rose Detho

Statutory Manager, Charterhouse Bank

Mr. Keriako Tobiko

Director of Public Prosecutions

Director
Criminal Investigations Department

The Directors of Charterhouse Bank.

- 21 -
7-1-\ -- .-,
1
INTERllVI REPORT
AN INTERII\'l REPORT uv rut TASK FORCE INVESTIGATING ECO~O;\IlC
CRli\lES BY CHARTERllOUSE 13ANK AI\D RELATED COi\lPANIES

INTRODUCTION

The task force met on zs" and 29

1h
October 2004 to appraise themselves with the task
and draw up an action plan,

OBJECTIVE
f '
The learn defined their objectives as:

1.1 To institute an economic crime investigation against the COI11JKlllles

mentioned below with a view to identifying potential Tax evasion, illegal,
f
1 money transfers or violation of Banking Act with the connivance of
Chartcrhouse Bank Ltd, The companies arc: _
1.1.1 Creative Innovations Ltc!.
1.1.2 Sailcsh Prajapati
1.1.3 D.Shah

1.1.4 Kariuki Muigua & Co. (Clients Accounts)

1.1.5 W. E. Tilley (Muthaiga) Ltd
1.1.6 Paolo Sattanino
1.1 .7 Tusker M attrcsscs Ltd
1.2
i To establish whether the Bank aided the said companies in committing
I. economic cnmes

1.3 To identify the Directors of Charterhollse Bank and establish a link with
the related companies in a possible network for committing economic
crimes with a view to breaking it
1\1ETllODOLOCY

The task force undertook the following steps to achieve its objective:

1.4 Carried out a search at the Registrar of Companies offices for d.ctails of
the companies referred above to obtain their registration details,
 1.5
Traced the physical addresses of the said companies to establish their
locations.
I.G
Carried out a surprise visit to Charterhouse Bank to obtain bank account
details in respect of various accounts held by the above listed companies
and individuals

1.7 Carried out a surprise visit to the specified comparues and obtained

documents and records relating to their business activities for the period
starting 1st January 1999 to 4th November 2004

L The visits to the companies' prcmiscs and thc bank were carried out simultancously.

1.8
Wrote to the Kenya Revenue Authority and obtained tax records in respect
of the companies listed above
J ' 1.9
Started si fling through the documents obtained from the companies and
the bank to try and establish any incidence of VAT evasion
)
S1l0RT TERM SCOPE

The team set out a short-term objective, which was to try and establish any likelihood of
VAT evasion by the said companies [or the period beginning 2nd of May 2003 to
September 2004

The reason [or this short-term scope was to take into account the [ollowing factors:
1. To take advantage of the period Kenya Anti - Corruption Commission became
operational and \vithin which period it can legally investigate and prosecute
2. The (cam appreciated that the exercise is complex and will take longer to
complete hence it was necessary to define a short term goal for immediate action
while the long term objective wil! be pursued systematically as the investigation
expands
-f-------------------
,

.f I:'-lTERl~l FINDINGS
CREATIVE INNOVATIONS LTD
f

from the documents collected from the company's prerniscs and from Charterhouse
Bank, the following was observed:

»: That the company operates four bank accounts with the Charterhouse Bank
r Only t.vo accounts arc disclosed in the company's official records. These arc:
o CA 01 - 001000009
o CA 01 - 0001000275

I r: The other
262,105,659
two accounts
are not disclosed
as shown below with
in the company's
deposits
Balance
amounting
Sheet
to Kshs.
for the period
r .~~ under review (ie from 2nd May 2003 to October 2004).
o CA 01- 01000074. Kshs. 237,268,640

j o CA 01· 01000206 Kshs. 24,837,019

262,105,659
r: It is evident that these deposits arc company income from sales and have not been
assessed for VAT and Income Tax since they are not disclosed in the companies
official records

;r. The figure shown above is for the period under review starting from May 2003 to
October 2004. It will certainly grow once the prior period is computed

Other observations

'r The company mainly deals with imports most of which is supplied to Nakurnatt
Holdings Ltd. It was observed that the company in respect of these supplies to
Nakumatt I Ioldings maintains no proper documentation
r It has also come to the Commissions knowledge that the company is a major
supplier of certain oils/lubricants to the following corporations the incomc of
which may not have been disclosed in their books
o Kenya Ports Authority
o Kenya Airports Authority
o Kenya Power 8: Lighting Company

3
 Steps rell1aining to be u ndcrtakc n

r Seck an cxp lanation from the Directors of Creative Innovations about the two
accounts held in their company's name at charterhouse Bank
).- If no satisfactory explanation is given, assume the amounts to be sales income and
assess V A T and Income Tax on it

:,.- Prepare to charge the company and the Directors with the offence of committing
an economic crime contrary to section 45 (1) (d) of the Anti-Corruption and
Economic Crimes Act No ] of 2003

r Assist KRA assess the income from the same two parallel accounts covering the
period from 1999 to April 2003 and assess VAT on it and pursue appropriate legal
»r-;
action on the offenders

L r Obtain details of payments and invoices the above mentioned corporations may
have made to the company and establish whether the income had becn included in
r' their 0 Ificial books of Accounts and assess for VAT and Income Tax.
;.... Get an explanation on the imported supplies made to Nakumatt Holdings Ltd and
- ;lSSCSS the tax implication

Offence likely to he disclosed

Failure to pay taxes contrary to section 45 (l) (d) of the Anti-Corruption and Economics
Act of200]

L ,- \V E TILLEY (]\1UTJIAIGA) LTD

f From documents
been observed:
obtained from the bank and the company's premises, the following has

r The company is a fish processing firm with exports forming 95% of their sales
and the remainder 5% being local sales

r From the above observations it follows that the bulk of their sales proceeds arc in
foreign currency i.c. US Dollars

r The company has three other related companies for which they allege to handle
lheir export through Kenya. The uircctorships are the same for all the four
companies. The three companies arc:
--+-' ----------------
I

I
I
,I o Prime Catch Ltd Tanzania
'0 i\lara fish Packers Ltd Tanzania
o Victoria Fish Packers & Processors Ltd
r The company operates six bank accounts spread as shown below
o Chartcrhousc Bank

• CA01-600178 US DOLLAR ACCOU~T

• Cl\ 01 - 01000630 KSHS, ACCOUNT
o Imperial Commercial Dank
• 100805 162 us DOLLAR ACCOUNT
• 100805 006 KSHS, ACCOUNT
o Fidelity Commercial Account
r ,"
• 11502443 US DOLLAR ACCOUNT
L-· • 11102442 KSHS, ACCOUNT
r: The total credits for the period January to September 200.+ into the six accounts
amount to Kshs 5,893,464,798, This figure is not adjusted by opening and closing
. debtors although the deposits still appear to be on the higher side
).;- The total sales for the same period amount to Kshs 1,351,874,269
).;- There arc numerous transfers from dollar accounts to shilling accounts ill the
same bank and across the other banks as well raising the possibility of double
credits in computing the above figure
»: There is also evidence of heavy trading in foreign currency between the company
and several Forcx Bureaus in the city
:r The company claims to receive export proceeds for its related cornpames and
banking it ill its own accounts
»: Il was observed that the company banks a lot in Afro Forcx Bureau bank account
with Fidelity Commercial bank
r l lugc payments arc also ma.lc to persons who on the face of it do not seem to
have any relationship with the nature of the company's business activities
Steps remaining to be undertaken
r: Adjust the figure of Kshs. 5,S93,..f(J.+,';"n by cross account transfers, opening JI1J

closing debtors and the declared sales

5
~

, [ »:
Obtain details and information 011 Directors bank accounts held in the same bank
and in other banks and establish whether any company proceeds arc banked in
f them
r:

,. Obtain an explanation
If no satisfactory
on the surplus amount from the Directors of the company
explanation is obtained, assess VAT and Income Tax on the
surplus

r Charge the company and the Directors with the offence of committing an
economic crime contrary to section 45 (I) (d) of the Anti-Corruption and
Economics Crimes Act of 2003

Compute income into the same accounts for the period starting from January 1999
to Apri I 2003 and levy the appropriate taxes and pursue the necessary legal action
Obtain the details of vehicles sold to one of their companies for which details of
the transactions have not been properly disclosed

Obtain from the company documents relating to vehicles sold to Prime Catch Ltd
one their related companies

r: Establish the nature and purpose of huge payments made to certain persons
r Get an explanation on huge withdrawals and deposits from the some of the
accounts held in their banks

r Obtain an explanation in regard to transactions with certain Bureaus III town

especially the Afro Forex Bureau.
).- Pursue other leads that wi II emerge

I-
f-' Offence likely to be disclosed

I.Failure to pay taxes contrary to section 45 (I) (d) of the Anti-Comlption and
Economics Act of 2003
2. Money laundering activities
-r
.1 TUSKER I\I:\TTRESSES L TO

A scrutiny of the documents obtained from the company's premises and the Charterhousc
r
Bank revealed the following:
;.:- The company operates a current bank account No 301 which had a balance of
Kshs. 4.3 billion from 2nd 1\'1a)' 2003 to September 20004
r: The bank account was opened in the year 2001 but was not disclosed in the
official books of accounts for the years 2001 and 2002
r: However Chartcrhousc bank is included in the final accounts for the years 2003
and 200..+

I ;.... We have also discovered

accounts with the Chartcrhouse
that the company's
Bank
Directors operate
in the form of fixed deposit
numerous other
accounts,
I·..·· savings accounts, and current accounts and call accounts. These accounts
numbering about seventy-five reflect huge balances

Steps nmaining to be undertaken

r Establish when the account 301 at Charterhousc Bank was incorporated in the
official books of accounts

r Obtain from Churtcrhousc Bank and Barclays Bank details of other accounts held
by the company's directors and assess whether proceeds from the company are
deposited in those accounts

> Determine whether any of the period under review was excluded

L r Assess tax on undeclared income for the period under rcvie\':

;.... Charge the directors and the company with the offense of tax evasion
I >- Pursue source of imported goods sold by the company. There were no import
documents found in the company's premises
.r Cover the period starting from 1999 to April 2003
r Pursue any other leads

7
~~' '--------------
;

J' OTIIER ENTITIES

1 Bank account details were sought for the follo\\'ing entities and below are the
observations from the information obtained from Charterhouse Dank

f
KARIUKI MUIGUA..\: CO. (CLIENTS ACCOUNTS)

Charterhousc Managing Director declined to dindge any infonl1Jtion or documents with

regard to this account citing a High Court order, which he claimed, barred him from
disclosing any information with regard to the above named accounts. He could only
produce a court order barring certain respondents from accessing the information with
regard to that bank account of which the Kenya Anti-Corruption Commission or its agent
was not among them

, Howcver, according to documents availed from other sources within the task force, one
of tile accounts, C1\ 01 - 000563 received deposits amounting to Kshs. 386,548,898
1h 51
starting from 8 March 2004 to 1 Septcmber 2004. Informatinn from the same source
also- indicated that the bank acts on unsigned instructions supposedly from Kariuki
Muigua, raising the possibility that the instructions arc prepared within the bank. It is also
believed that the account is actually operated by some of the big businesses in town but
shielded by the cloak of clients' confidentiality,

Steps to be undertaken

Since the court oreler barring access to any of Kariuki MuigU3S accounts does not cite the
Kenya Anti - Corruption Commission or its agents, then the warrant to investigate issued
to Henry Mwithia should be enforced.

Offence likely to be disclosed

failure (0 pay taxes by the companies using this account as parallel accounts contrary to
section 45 (I) (d) of the Anti-Corruption and Economics Act of200J

s
-t-~ -------------
I'

'I D SHAll ACCOU~T

This account has received a total of Kshs. 601,968,171.33 in deposits for the period
starting from 5th i\lay 2003 to 3'd November 2004 mostly in huge cash deposits, It is also
rcf1ccts huge cash withdrawals. It is believed that the related companies usc this account
as a secret parallel account through which to hide sales proceeds. The account opening

documents could not reveal the owner.

Steps to be undertaken
r: Collect debit and credit vouchers effecting entries into this account and establish
the source of the funds
r Interview Chartcrhousc bank officials and try to trace the owner of the account
'r If a case is established of VAT and Income Tax evasion, then charge the
I. companies their directors with committing an economic crime

Offences likely to be disclosed

Tax evasion contrary to section 45 (1) (d) of the Anti-Corruption and Economics Crimes

Act of 2003

SAILESH PRA.JAPATI ACCOUNT CA 01 - 000148

The bank claimed that account-opening documents in respect to this account were burnt
r
clown in a fire.

l, { However, between 2nd May 2003 and 2nd August 2004 the account received Kshs.
551,518, 102.25 in the form of huge cash deposits, and cheques from Nakummatt
Holdings. The account also reflects cash withdrawals in an usually huge amounts. It is
believed that this is account is also used by big business in town like to hide sales

proceeds.

Steps to he undertaken
r: Collect debit and credit vouchers cffcctin:; entries into this account and establish
the source ofthe funds
~~. '--------------

,f' »: lnlcrvicw Chartcrhousc bank officials and try to trace thc owner of the account

r' »: If a case
companies
is cstablishoj of VAT
their directors with committing
and Income
an economic
Tax evasion,
crime.
then charge the

PAOLO SATTAl\I':;O ACCOUNTS

Mr. Paolo Sauanino operates three foreign accounts with Chartcrhousc Bank.
I Iowcvcvcr, thc bank opening documents contains the name of Capricorn SRL. The bank
officials claimed that those are the documents for the account. The bank opening
documents are an account opening form and t\VO letters signed by Paolo Sattanino, one
as himself and the other as the Managing Director of Capricorn SRL The letters
authorize the bank to act on E -]\,rail instructions from the writer.

The three accounts are: -

1. ACCOUNT NO. CA 01 - 60006 A US DOLLAR ACCOUNT

A scrutiny of the bank statement revealed that the above account received USD
657,?51.2 (the equivalent of Kshs. 52 million) between 15t April 2004 and 3rd November
2004 by way of transfer mostly from Creative Innovations and Kings\\'ay. Telegraphic
transfer of foreign exchange takes out an equivalent amount to recipients like several
recipients like Tradcx.

Steps to be undertaken

Establish the purpose of the funds transferrcd into his account

Establish the tax implications 011 the activities of this account.
Assess appropriate tax

Charge those responsible for tax evasion with the offence of committing an
economic crrmc

:,... Pursue the destination of the funds transferred out of the account by telegraph and
establish whether any laws have been contravened.

10
-l_~ _

2. ACCOUNT ;\0. CA 01 - 8001.t5 EuRO ACCOU;\T

This account received a total of Euros 392,387.49 (the equivalent of Kshs. 40,808,298) in
the short period between I st April 200.+ and 22",] October 200'+. Similarly, the deposits
were by way of transfers from Creative Innovations and D Shah accounts. Debits in the
account a by way of telegraphic transfers to foreign destinations.

Steps to be 1I n dcrt akcn

r: Establish the purpose of the funds transferred into his account

r Establish the tax implications on the activities of this account.
r Assess appropriate tax

,;- Charge those responsible for tax evasion with the offence of committing an
r economic crime , .
I .-
;;... Pursue the destination of the funds transferred out of the account by telegraph and
establish whether any laws have been contravened.

3. ACCOUNT NO. CA 01 -700154 A BRITISH POUND ACCOUNT

nd
Between I st April 2004 and 22 October 2004, the above account received a total of

I. 4,748.20
Shall.
British Pounds (the cquivalcn t of Kshs. 712,2UU) in deposits mainly from D

Steps to he undertaken

,;- Establish the purpose of the funds transfcrrcd into his account
r: Establish the tax implications on the activities of this account.
r Assess appropriate tax

r Charge those responsible for tax CVJ.Slon with the offence of committing all

ccononuc crnnc

11
-f-" ------------
r Pursue the destination of the funds transferred out of the account by telegraph and
establish whether any laws have been contravened.

3. ACCOUNT ~O. CA 01-700154 A BRITISH POU","D ACCOU[';T

st
Between 1 April 2004 and nnJ October 2004, the above account received a total of
)
4,748.20 British Pounds (the equivalent of Kshs. 712,200) in deposits mainly from D
Shah,
I Steps to be undertaken
>-- Establish the purpose of the funds transferred into his account
!- r Establish the tax implications on the activities of this account.

1 ~~ ;;.- Assess appropriate tax

r: Charge those responsible for tax evasion with the offence of committing an

I ccononuc crnnc

»: Pursue the destination of the funds transferred out of the account by telegraph and
-cstablish whether any laws have been contravened.
Offence likely to he disclosed
1. Failure to pay taxes contrary to section 45 (I) (d) of the Anti-Corruption and
Econom ics Ad of 2003.
2. Funds transfer to secret destination.

1(
Prepared by: 11ENRY 1\11\IWITIIIA
1. 30'1'11NOVEl\lllER 2004

12
 ,r =.:""=:..-'
----l_,=.~-~~ _

r •

I
INrrERI1VI REPORT
f AN INTERIi\1 REPORT BY TIlE TASK FORCE INVESTIGATING ECOi'\01\lIC
CRli\IES BY ClIARTERIlOUSE BA~K A~D RELATED COl\lPANIES

(Updated from the iz" November 200-l interim report ,,,it!; latest findings)

INTRODUCTION

lh th
The task force met on 28 and 29 October 2004 to appraise themselves with the task
and draw lip an action plan.

OBJECTIVE

.:
~
The team defined their objectives as:

1.1
To institute an economic cnrnc investigation against the companies
mentioned below with a view to identifying potential Tax evasion, illegal,
money transfers or violation of Banking Act with the connivance of

r Chartcrhouse Bank Ltd. The companies are: _

1.1.1 Creative flJJIUValiuJls Ltd.
1.1.2 Sailcsh Prajapati
1.1.3 D. Shah
1.1.4
Kariuki Muigua & Co. (Clients Accounts)
1.1.5 W. E. Tilley (Muthaiga) Ltd

I.. I
I.].G Paolo Sattanino
1.1. 7 Tusker Mattresses Ltd
{,
l ' 1.2
To establish whether the Bank aided the said companies in committing
ccononuc cnrncs

1.3 To identify the Directors of Chartcrhousc Bank and establish a link with
the related companies in a possible network [or committing economic
crimes with a view to breaking it
METHODOLOGY

The task force undertook the following steps to achieve its objective:
~-' --.:-_------------

f 1.4
Carried out a search at the Registrar of Companies offices for details of
the companies referred above to obtain their registration details.
f 1.5
Traced the physical addresses of the said companies to establish their
locations.

1.6 Carried out a surprise visit to Ch::1lierhouse Bank to obtain bank account
details in respect of various accounts held by the above listed companies
and individuals

I.7 Carried out a surprise visit to the specified companies and obtained
documents and records rebting to their business activities for the period
starting 1sl January 1999 to 4th November 2004

The visits to the companies' premises aud the bank were car ricd out simultaneously.

1.8 Wrote to the Kenya Revenue Authority and obtained tax records in respect
of the companies listed above

1.() Started sifting through the documents obtained from the companies and
the bank to try and establish any incidence ofY A T evasion

SJ IORT TEI{J\I SCOPE

The team set out a short-Icrm objective, which was to try and establish any likelihood of
Y AT evasion by the said companies for the period beginning 2nd of May 2003 to
September 2004

The reason for this short-term scope was to take into account the following factors:
I. To take advantage of the period Kenya Anti - Corruption Commission became
operational and within which period it can legally il1\"estigate and prosecute
2. The team appreciated that the exercise is complex and will take longer to
complete hence it was necessary to define a short term goal for immediate action
while the long term objective will be pursued systematically as the invesugation
expands
-f-- ------------
r
I:'iTERL\l FINDII\GS
f

CREATIVE I;\i\OVATIO~S LTD

From the documents collected from the company's premises and from Charterhousc
Bank, the following was observed:
'r That the COIllP:lI1Y operates four bank accounts with the Charterhouse Bank
»: Only two accounts are disclosed in the company's official records. These arc:
o CA. 01 - 001000009

o C1\ 01 - 0001000275

r The other two accounts as shown below with deposits amounting to Kshs.
262,1 U5,659 arc not disclosed in the company's Balance Sheet for the period
under review (ie from 2nd May 2003 to October 200-+).
o CA 01 - 01000074 Kshs.237,268,640
o C1\ 01 - 01000206 Kshs, 24,837,019

262,105,659
';- II is evident that these deposits arc company income from sales and have not been
assessed for VAT and Income Tax since they are not disclosed in the companies
official records
).;- The figure shown above is for the period under review starting from May 2003 to
October 2004. It will certainly grow once the prior period is computed
r Computed VAT evasions plus penalties for the period amount to Kshs.
I
l. 202,4lJ1,498 for that period.
;... The corresponding VAT and Additional Tax liabi lity for the period May 2003 to
October 2004 is Kshs. 44,839,492.
0111 CIO ob scrva tio n S

r The company mainly deals with imports 1110st of which is supplied to Nakumatt
I Ioldings Ltd. It was observed that the company in respect of these supplies to
,'\akull1attl1oJdil1gs maintains 110 proper documentation

J
~~~ ~------------
[.
"r It has also come to the Commissions knowledgc that the company .
lS .
a major

r' supplier of certain oils/lubricants

which may not have been disclosed
to the following
in their books
corporations the income of

o Kenya Ports Authority

f
o Kenya Airports Authority
o Kenya Power 8:. Lighting Company
Next course of action

;..- Compile a case file and recommend charges on the Directors of Creative
Innovations for failure to pay VAT and Additional Tax in the tune of Kshs.
44,839,492 to the Kenya Revenue Authority in the period from March 2003 to
October 2004
.J •

r The Kenya Revenue Authority to recover from Creative Innovations Ltd the
amounts owed in VAT and Additional Tax.

r" Offence likely to he disclosed

Failure to pay taxes contrary to section 45 (1) (d) of the Anti-Cornlption and Economics

! Act of2003

\V E TILLEY (MUTIIAIGA) LTD

From documents obtained from the bank and the company's premises, the following has
bl:(;llobserved:

;..- The company is a fish processing finn with exports fonning 95% of their sales
and the remainder 5% being local sales

;. from the above observations it follows that the bulk of their sales proceeds arc in
foreign currency i.e. US Dollars

r The company has three other related companies for which they allege to handle
their export through Kenya. The directorships are the same for all the four
companies. The three companies arc:
o Prime Catch Ltd
Tanzania
o Mara Fish Packers Ltd
Tanzania
o Victoria Fish Packers & Processors Ltd Uganda
r: The company operates six bank accounts spread as shown below
-[-' ------------

o Chartcrhousc B::lI1k
• CAOI-600178 us DOLLAR ACCUL'NT
• CA 01 - 01000630 KSHS. ACCOUNT
o Imperial Commercial Bank
• 100805 162 US DOLLAR ACCOUNT
• 100805 OOG KSHS. ACCOUl'iT
o Fidelity Commercial Account
• 11502443 US DOLLAR ACCOUNT
• 11102442 KSHS. ACCOUNT
;;.. The total credits for the period January to September 2004 into the six accounts
amount to Kshs 5,893,464,798. This figure is not adjusted by opening and closing
debtors although the deposits still appear to be on the higher side
r The total sales for the same period amount to Kshs 1,351,874,269
:,- Then; are numerous transfers from dollar accounts to shilling accounts 111 the
same bank and across the other banks as well raising the possibility of double
. credits in computing the above figure
r There is also evidence of heavy trading in foreign currency between the company
and several Forex Bureaus in the city
).:- The company claims to receive export proceeds for its related companies and
..,
.
r banking it in its own accounts
:r It' was observed that. the company banks a lot in Afro Forex Bureau bank account
I.( with Fidelity Commercial bank
;;.. Huge payments are also made to persons who on the face of it do not seem to
( <

have any relationship with the nature of the company's business activities
Additional findings
r: TOt:l1 sales for the period May 2003 to October 2004 amounted to Kshs.
5,230,206,7<J1.25 while the total deposits into their official bank accounts amount
[0 Kshs. 5,630,6 11,476.00.

? Allowing lor exchange rate gains (losses) it seems the deposits in their official
bank accounts compensate for the sales proceeds of the three sister companies.

5
-.J---..:.---------------
(
r But the company only declares the sales proceeds of the Kenyan operations to the
Kenyan Tax Authority.
f
'r No evidence however IS seen of remittances to the Tanzanian companies to
account for their exports,

»: There is evidence that the company trades heavily In foreign currency with a
number of Forcx Bureaus.
Next course of action

r Contact the Tanzanian Revenue Authority to find out whether the Tanzanian
sister companies declare their export earnings in Tanzania.
,. If the amounts are not brought to charge in Tanzania, then the relevant Kenyan
tax will be assessed on the balance not declared in Kenya.
:r Establish the implications of trading in foreign currency, assess the income
earned, determine the tax implications and recommend appropriate action.
r.
r Prepare a case file and recommend charges on the Directors for failing to declare
income and pay taxes to the Kenya Revenue Authority.
I Offence likely to be disclosed

1. Failure to pay taxes contrary to section 45 (1) (d) of the Anti-Corruption and
Economics Act 0[2003
2. Money laundering activities

TUSKERl\IATTRESSES LTD

A scrutiny of the documents obtained from the company's premises and the Chartcrhousc
Dank revealed the following:

r The company operates a current bank account No 301 which had a balance of
nd
Kshs. 4.3 billion from 2 May 2003 to September 20004

r The bank account was opened in the year 2001 but was not disclosed III the
official books of accounts for the years 200 I and 2002

r However Chartcrhouse bank is included in the final accounts for the years 2003
and 200.+

r We have also discovered that the company's Directors operate numerous other
accounts with the Charlerhouse Dank in the tOIlH of fixed deposit accounts,

G
-f-~ -----------~
savings accounts, and current accounts and call accounts. These accounts
numbering about seventy-five reflect huge balances
Additional findings
";.- Going by banked sales and V AT declared account, we observe that the
supermarket has under declared their sales by Kshs. 911,(19)87 between July
] 999 to June 200-1- which would attract a VAT levy of approximately 1G0,998,230
in principal amount alone.
r The corresponding figure [or period under review i.e. July 2003 to June 200..+we
find an under-declaration of Kshs. 59,397,968, which would attract a V AT levy of
approximately Kshs. 9,503,674 in principal amount alone.
r Between July 2002 and June 2004, the company also understated their purchases
by KsI1S. 437,679,937, which would attract Kshs. 75,808,414 in principal VAT
levy.
r The corresponding figure [or July 2003 to June 2004 is Kshs. 148,698,662, which

would attract the VAT levy of Kshs, 23,791,785 in principal sum.

r: The above figures can only be confirmed after:
o Crosschecking with the sales account in the computer.
o Cross check sales to other supermarkets in the chain
o Analyzing stock records
o Verifying the input tax
Next course of action
J

t.
( ;.:- Access the computer data and verify the figures quoted above.
;..... Establish the final taxable amount and assess tax.

r Obtain Bank account records of the numerous fixed deposit, call deposits and
current account deposits of the company and the Directors held at Charterhouse
Dank and Barclays Bank and investigate if any of the supermarket sales proceeds
are banked directly into those accounts
r Prepare a else file and recommend charges on the Directors of Tusker .\Iattrcsses
for failing to declare income and pay taxes clue to the Kenya Revenue Authority.
r: Kenya Revenue Authority to commence recovery of the taxes due.

7
-1-' -------------"---

The second phase of the investigations will focus on the remaining four entities with the
aim of unraveling the network of secrct bank accounts with the attendant tax evasions,
illegal money transfers and violation of banking rules by big businesses. This second
phase should start as soon as thc first phase is considerably concluded.

Prepared by: HENRY i\ll\l\VITIIIA

30TII l\OVEi\lBER 200-l

I
r.
f~
I

...
I~
{

,.,
I
~l ~ _
.r EXECUTIVE SUl\Ii\'IARY
f'
INTERIl\'1 REPOR1~
[
I AN INTERIl\I REPORT
CIUl\IES ill' CHARTEIUIOUSE
ill' TIlE TASK FORCE INYESTIGATI:\G
ilA~K AND RELATED COl\lPA1'ILES
ECO~O;\IIC

[
'r The Kcnya Anti-Corruption Commission backed by officers from the Kenya
Rcvenuc Authority and the Banking Fraud Invcstigation Department made a
I
surprise raid to the follmving four establishlllclltS.

r- 1) Charterhouse
2) Tusker Mattresses
Bank

r 3) Crcati vc Innovations
4) WE Tilley (Muthaiga)
Lim ited
Ltd

I r From the Chartcrhousc

persons were collected:
Bank, account records for the following companies and

! J) Tusker M attrcsscs

2) Creative Innovations
3) WE Tilley (Muthaiga) Ltd
4) Sailesh Prajapati
5) D Shah
G) Paolo Sattanino

;.:. For the convenicnce of opcrating within the period within which the Kenya Anti-
Corruption Commission can Icgnlly investigatc, the Task Force decided to
initially scrutinize the records of the first three companies starting from 2nJ 1\lay
2003 to date with a view to est:.tblishing any illcidence of VAT and Income Tax
e\'aSlon.

;.- The following findings have been made following the scrutiny of the company's
records \'is-:'t-vis (he bank records,
 f
I
,!
1. CREATIVE INNOVATIONS LTD

:r We have discovered two undisclosed Bank accounts of Creative Innovations with

deposits totaling to Kshs. 262,105,659 within the period ] anuary 1999 to October
2004.

).- Computed V AT evasions plus penalties for the period amount to Kshs.
202,491,498 for that period.

,. The corresponding VAT and Additional Tax liability [or the period May 2003 to
October 2004 is Kshs. 44,839,492.

Next COUI'SC of action

"
\
>- Compile a case file and recommend charges on the Directors of Creative
I' Innovations [or failure to pay VAT and Additional Tax in the tunc of Kshs.
!
44,839,492 to the Kenya Revenue Authority in the period from March 2003 to
October 2004

r The Kenya Revenue Authority to recover from Creative Innovations Ltd the
amounts owed in VAT and Additional Tax.

2. \V E TILLEY (MUTHAIGA) LTD

l I,
'r W E Tilley Muthaiga Ltd IS a fish processing and export company with sister
companies Tanzania.
I (

I
I. r: The Kenyan company handles all the exports on behalf of the Tanzanian
companies and receives payments on their behalf.

r Total sales for the period May 2003 to October 200-1 amounted to Kshs.
5,230,206,791.25 while the total deposits into their official bank accounts amount
to Kshs, 5,030,611,476.00.

:,... Allowing for exchange rate gains (losses) it seems the deposits in their official
bank accounts compensate for the sales proceeds of the three sister companies.
~f~ s,
_
f'
;... But the company only declares the sales proceeds of the Kenyan operations to the
[ .
Kcnyan Tax Authority.

:r No evidence however IS seen of remittances to the Tanzanian companies to

account for their exports.

r There is evidence that the company trades heavily II1 foreign currency with a
number ofForex Bureaus.

Next course of action

'.
r
Contact the Tanzanian Revenue Authority to find out whether thc Tanzanian
...• ~ sister companies declare their export earnings in Tanzania .
\
r:
If the amounts arc not brought to charge in Tanzania, then the relevant Kenyan
tax will be assessed on the balance not declared in Kenya.
r' ".r:
Establish the implications of trading in foreign currency, assess the income
earned, determine the tax implications and recommend appropriate action.
,
r:
Prepare a case file and recommend charges on the Directors for failing to declare
income and pay taxes to the Kenya Revenue Authority.

3. TUSKl~R MATTRESSES LTD

r Going by banked sales and V AT declared account, we observe that the

L supermarket has under declared their sales by Kshs. 9) 1,619,287 between J lily
(
[C. \ .. 1999 to June 2004 which would attract a VAT levy of approximately 160,998,230
in principal amount alone.

,.. The corresponding figure [or period under review i.e. July 2003 to June 2004 we
find an under-declaration of Kshs. 59,397,968, which would attract a VAT levy of
approximately Kshs. 9,503,G74 in principal amount alone.
;,- Between July 2002 and June 2004, tile company also understated their purchases
by Kshs. 437,679,937, which would attract Kshs. 75,S08,414 in principal VAT
lev)'.

3
-f
'r The corresponding figure for July 2003 to June 2004 is Kshs. 148,698,662, which
would attract the VAT levy of Kshs. 23,791,785 in principal sum.
r: The above figurcs can only bc confirmed after:

o Crosschecking witl: the sales account in the computer.

o Cross check sales to other supermarkets in the chain
o Analyzing stock records
o Verifying the input tax

Next course of action

);- Acccss the computer data and verify the figures quoted above.
l.·~ ;Y Establish the final taxable amount and assess tax.

)..- Obtain Bank account records of the numerous fixed deposit, call deposits and
current account deposits of the company and the Directors held at Chartcrhousc
Bank and Bare lays Bank and investigate if any of the supermarket sales proceeds
are banked directly into those accounts

r Prepare a case fi Ie and recommend charges on the Directors of Tusker Mattresses

for failing to declare income and pay taxes due to the Kenya Revenue Authority.
>
-
J •
Kenya Revenue Authority to commence recovery of the taxes due.

4. ~(ARIUKI l\lUIGUA & CO. (CLIENTS ACCOUNT)

I.
)..-
\.. Chartcrhousc Bank declined to provide any documents on this account citing a
high court order barring anybody from invcstigating it.
,
r:
Later thc bank forwarded a copy of another high Caliri order baring the Kenya
Anti-Corruption Commission from invest.gating the account.
r: This later l Iigl: Court order has not been served on the Commission as at the time
of making this report.

)..- It is believed that the account is operated by big businesses in town that deposit
sales proceeds into the account and hope (0 hide them using the cloak of client's
COil fidcn ti ~l!i t y under the ad vee ales ac t.
 Next course of action

>- Await service of the order to determine the next course of action.

5. D SHAll ACCOUNT

th
>- Between 5 May 2003 and yd November 2004, the account received a total of
Kshs. 601%8171.33 in deposits.

);.- Some of the deposits have been cstab lished as cash transfers from sundry
creditors.

;- The equivalent is then taken out as Idd issued by order of Mr. D Shah

f" Next course of action

[ ).- Trace the fdds and try to establish the beneficiaries of the transfers.
/'" Establish the real source of funds and detenninc whether it is a parallel account to
hide sales proceeds for companies.

r Assess the information and recommend appropriate action.

G. SAILESII PRAJAPATTI ACCOUT

[ J

{
:.-
r ,
\-
No account opening documents
fi reo
availed. They were allegedly burnt in a gocdown

r:
KsllS. 555,618,102.25 deposited between 2nd May 2003 and 2nd August 2004
r:
Most deposits from Nakurnatt holdings and transfers from sundry creditors.
r
In one instance an equivalent of the amount transferred from Sundry Creditors is
taken out through Idil's by order ofvarious persons

5
-1-' -----.:....-----------------::----
Next course of action

r Trace the Idds to establish their beneficiaries

r Trace the source of funds and establish whether is a scheme to hide sales proceeds
to evade tax.

r Determine the extent of liability and recommend appropriate action.

f

I 7. PAOLO SATTANII\O ACCOUl\TS

a) CA 01-60006 Approx Kshs. 52 Million in deposits.

I b) CA 01 - 800145 Approx 40,808,298 in deposits.

c) CA 01-700154 Approx 712,200 in deposits.

L·' r No account opening documents. (

,. Accounts held in foreign currency.

r' ;,.. Withdrawals mostly by Telegraphic transfers.

Next course of action

r Establish the purpose of the funds transferred into his accounts

;,. Establish the tax implications on the activities of these accounts.

" . /" Assess appropriate tax

;;- Charge those responsible [or tax evasion with the offence of committing an
eCOnOl1lIC crime

;,. Pursue the destination of tile funds transferred out of tile account by telegraph ar,
establish whether any laws have been contravened.

CONCLUSION

The -first phase of this exercise focused on the first three companies with the ann of
investigating allegations of VAT and Income T:-Ix evasions. The three are:
i) Creative Innovations
ji) \V E Tilley (J\luth:liga) Ltd
iii) Tusker :-'lattresscs

6
-v
The second phJSC of thc investigations will focus on the remaining four entities with thc
aim of unraveling thc network of secret bank accounts with the attendant tax evasions,
illegal money transfers and violation of banking rules by big businesses. This second
phase should start as soon as the first phase is considerably concluded.

Prepared by: IIE:\RY;\Il\l\YITIIIA

30TII NOVEI\IBER 200-t

I .'
1.. -~
'

..••

L ,
\
I
l

'7
I
~.

r
OTII ER ENTITIES

I' Bank account details were sought for the following entities and below are the
observations from the information obtained from Chartcrhousc Bank

KARIUKI MUIGUA & CO. (CLIE~TS ACCOU~TS)

Charterhouse ;\lanaging Director declined to dindgc any information or documents with

regard to this account citing a High Court order, which he claimed, barred him fron:
disclosing any information with regard to the above named accounts, I-Ie could only
produce a court order barring certain respondents from accessing the information with
regard to that bank account of which the Kenya Anti-Corruption Commission or its agcnt
was not among them

. Howcver, according to documents availed from other sources within the task force, one
.f of the accounts, CA 01 - 000563 received deposits amounting to Kshs. 380,548,898
ih
starting from 8 March 2004 to lSI September 2004. Information from the same source
also -indicated that the bank acts on unsigned instructions supposedly from Kariuki
f\luigua, raising the possibility that the instructions arc prepared within the bank. It is also
believed that the account is actually operated by some of the big businesses in town but
shielded by the cloak of clients' confidentiality.

Latest developments

r: The bank forwarded a copy of another high court order baring the Kenya Anti-
Corruption Commission from invcstigating the account.

> This later High Court order has not been served on the Commission as at the timc
ofJ1laking this report.

r It is believed that the account is operated by big businesses in town that deposit
sales proceeds into the account and hope to hide them using the cloak of client's
confidentiality under the advocates act.
Next course of action

r Awai: service of the order to determine thc ncx: course ofactioll.

8
_..J' .
I

Offence likely to he disclosed

Failure to pay taxes by the companies using this account as parallel accounts contrary to
section 45 (1) (d) of the Anti-Corruption and Economics Act of2003

D SIL\H ACCOCNT

This <lCCOUl1thas received a total of Kshs. GOl,%8,171.33 in deposits for the period
rJ
starting fr0111 5lh May 2003 to 3 November 2004 mostly in huge cash deposits. It is also
reilcets huge cash withdrawals. It is believed that the related companies use this account
as a secret parallel account through which to hide sales proceeds. The account opening
I, .
documcnts could not reveal the owner.

L'~ Additional findings

r Some of the deposits have been established as cash transfers from sundry
creditors.

r: The equivalent is then taken out as fdd issued by order of 1\'1r. D Shah

Next course of action

';- Collect debit and credit vouchers effecting entries into this account and establish
the source of the funds
I .. 'r Interview Charterhouse bank officials and try to trace the owner of the account
("
;. If a case is established of VAT and Income Tax evasion, then charge the
companies their directors with committing an economic crime
,. Trace the fdJ's and try to establish the beneficiaries of the transfers.
r Establish the real source of funds and determine whether it is a parallel account to
hide sales proceeds for companies.

»: Assess the information and recommend appropriate action.

9
~ ..

[
Offences likely to be disclosed

I Tax evasion
Act 0[2003
contrary to section 45 (I) (d) of the Anti-Corruption and Economics Crimes

SAILESII I'RAJAPATI ACCOUNT CA 01 - 000148

The bank claimed that account-opening documents in respect to this account were burnt
down in a fire,
d
However, between 2" 1\'1:1y2003 and 2nJ August 2004 the account received Kshs.
551,518,102.25 in the form of huge cash deposits, and cheques from Nakummatt
Holdings. The account also reflects cash withdrawals in an usually huge amounts. It is
believed that this is account is also used by big business in town like to hide sales
proceeds.

Additional findings

r. Most deposits from Nakumatt holdings and transfers from sundry creditors.
:r. 111one instance an equivalent of the amount transferrcd from Sundry Creditors is
taken out through fJJ's by order of various persons
Next course of action

r Collect debit and credit vouchers effecting cntries into this account and establish
the source of the funds

;;. Trace the Idcl's to establish their beneficiaries

Ie r Interview Charlcrhouse bank officials and try to trace the OW11erof the account
r If a case is established
I companies
of VAT and Income
their directors with committing
Tax
an economic
evasion,
crime.
then charge the

PAOLO SATL\NINO ACCOUNTS

Iv! 1'. Paolo Satlanino operates three foreign accounts with Chartcrhousc Bank.
Howe\'c\'cr, the bank opening dOcllIllents contains the name of Capricorn SRL The bank
officials claimed that those are the documents for the account. The bank opening
docllIllents arc al1 account opening J{J!1l1and two letters signed by Paolo Sattunino one as

10
-l-'• -------------------,-

hirnscl f and the other as the Managing Director of Capricorn SRL. The letters authorize
the bank to act on 12 - Mail instructions from the writer.

The three accounts arc: -

1. ACCOU~T 1'(0. CA 01 - 60006 A US DOLLAR ACCOU~T

A scrutiny of the bank statement revealed that the above account received USD
657,651.2 (the equivalent of Kshs, 52 million) between 151 April 2004 and 3rJ November

2004 by w~y of transfer mostly fr0111 Creative Innovations and Kingsway. Telegraphic
transfer of foreign exchange takes out an equivalent amount to recipients like several
recipients like Tradcx.
Steps to he undertaken
[
i ? Establ ish the purpose of the funds transferred into his account
I.
'r Establish the tax implications on the activities of this account.
r l\SSCSS appropriate lax

).... Charge those responsible [or tax evasion \Vit11 the offence of C0I11111ilting an

ccononuc cnrnc

r: Pursue the destination of the funds transferred out of the account by telegraph and
establish whether any laws have been contravened.

2. ACCOUNT NO. C1\ 01 - 800145 EURO ACCOUNT

This account received a total ofEuros 392,387.49 (the equivalent of Kshs, 40,808,298) in
the short period between 1 st
April 2004 and 22nJ October 2004. Similarly, the deposits
(
were by way of transfers from Creative Innovations and D Shah accounts, Debits in the
I account a by way of telegraphic transfers to foreign destinations.
1.
Steps to he undertaken

r Establish the purpose of the funds transferred into his account

»: Establish the tax implications on the activities of this account.
r: l\ssess appropriate tax

r Charge those responsible for tax evasion with the offence of committing an
economic crrmc

11
~_ .., ----.:....--_-----------

f Offcn c os likely to be disclosed

Tax evasion contrary to section 45 (1) (d) of the Anti-Corruption and Economics Crimes
J
Act of 2003

SAILESII PRAJAPATI ACCOUNT CA 01 - 000148

The bank claimed that account-opening documents in respect to this account were burnt
down in a fire.
d
However, between 2/l 1\1:11' 2003 and 2nd August 2004 the accoun: received Kshs.
551,518,102.25 in the form of huge cash deposits, and cheques from Nakummau

1 Holdings. The account also reflects cash withdrawals in an usually huge amounts. It is

r believed that this is account

proceeds.
is also used by big business in town like to hide sales

Additional findings

r Most deposits Irorn Nakumau holdings and transfers from sundry creditors.
:,:.. 111 one instance an equivalent of the amount transferred from Sundry Creditors is
taken out through fJd's by order of various persons
Next cour-se of action

> Collect debit and credit vouchers effecting entries into this account and establish
the source of the funds

:r Trace the fdds to establish their beneficiaries

r Interview Chartcrhous., bank officials and try to trace the oWl~er of the account
r If a case is established of VAT and Income Tax evasion, then charge the
companies their directors with committing an economic crime.

PAOLO SAT'L\NINO ACCOUNTS

Mr. Paolo Sattanino operates three foreign accounts with Ch~lrterhousc Bank.
Howcvcvc- the bank opening documents contains the name of Capricorn SRL The bank
officials claimed that those arc the documents for the account. The hank opening
documents JI'C <Inaccount opening form and two letters signed by Paolo Sattunino, one as

10
 'r Pursue the destination of the funds transferrcd out of the account by telegraph and
cstahlish whether any laws have been contravened

Offence likely to be disclosed

1. Failure to pJ.y taxes contrary to section 45 (1 ) (d) of the Anti-Corruption and

Economics Act of 2003.
2. funds transfer to secret destination.

Prepared by: HENRY 1\1l\1\VITHIA

12111 NOVEMBER 200-t

f"

/ ..
f

I·
C r

I
I

12
 D:\ j\' I"':I
KlJU Y:\ CENTHAL
KENYA DANK OF
KENYA
j l:uie -'i'·;:"si..: Avenue
1'.0. Box 6!;<XD N:lirobi Kenya
Dccemcc. :2:2. 2(/J4 Telepbone 22(;-n j Tciex 22124

The Dircc:or
l\enya f\n(:·Ccrr~ption Commission
L1tcS,-i\ Ce:-.:;·c
r)O.Go:-:6:~3) C0200
I'iAmOj"~I

Dellr Sir

l\£: J[\VESTIGATION OF ECONOMIC CRIMES BY CHARTERHOUSE BANK

LTD AND RELATED COMPANIES

'Ne i1Ch~o','..ICC::?C receipt of your letter dated December 15, 2004 and note with concern the
hurdles you (:HC being in accessing information from Chalierhouse bank.

Although- we believe thut the various options referred to in your Jetter may "be fraught with
cie!c\ys and counter court actions" we nonetheless are of the view that it would be
l1p:Jroj)riC1lc for you to seek the opinion of the Attorney Genera! in respect of the hurdles you
arc encour;:c:'ing in the course of your investigation especially having regard to the powers
bestowed upon you by the statutes.

Needless to say, the Central Bank will endeilvour to follow' up with the bank the mutters
ri'.l!scd in your letter in so far as they relate to compliance with the Central Bank of Kenya
ACl, Bllr:kinS Act and the Regulations issued thereunder as well as the Prudential Regulations
issued by tj'~c Central Bank. To facilitute this, we would appreciate yow' availinq to us any
c-- ;xklitioi1i:d i"fcl'~1illiion of fClilure/rcfusal to provide data by the Chalierhouse bank that you
would w.sh to draw to our attention so as to enable us demand the same from the institution.

You ,~:,,/' '.'..si: » i;(;18, however, that the info:'mation gathered by the Central Bonk can only
be i.scd k.:· ".ir regulatory function under the Banking Act arid cannot be availed to you 'in
viev, of ~:~(;C()iIStri:liiits imposed on the Bank under the Act with reqard to disclosure of
i:,:I):'iL'i:i()i~ l)i,'l(i:ncd in the course of inspectio'IS.

c2,=-':'-.
c::.::._...
<---~_ ~,.~ ..~_._-
 6;::
l0\.
;;!....\.
•• 0, ••• ,

...:.~.
'<~-'#. -,

INTH:I~:::~~;;:::=~::;~~~:;":'~;'
CIVIL SUIT NO. 329 OF 2006

VERSUS
...~.•..
;.;,"f)
CE:':T:::::'.:":::,,,
3A~K OF KE~YA FIRST 'DEFENDANT
:\,:I::\J:Sr;:::j::::' ?OR FI::-IA~CE SECOND DEFENDANT
ROS:::: ':>::':'::-.:0 THIRD DEFENDANT

':
;
REPLYING AFFIDAVIT

I, GER.:'-+D ARITA NYAOMA of Cerit. al Bank Building and of Post Office

,
Box N1.:..mber 60000 Nairobi in the Republic of Kenya do hereby make

o2<h 3,:::;('. state as follows:-

1. 7HAT, I am the first Deferic.an t's Director, Banking Supervision

::>::p2.rtmcnt arid I run du.y authorised by it to swear this
;·,.~-fid2lvit
on its berralf and confirm t.hat, I am fully conversant.
·.<~hthe facts deponed to in this affidavit and can positively
~\...car thereto from 'my personal knowledge.

TtIAT, I have read and understood the contents of the Chamber

Surnrnon s dated the 23rd day of June, 2006 and the affidavit in
support thereof sworn by one Sanjay Shah on the same dated
.ind state that I make this affidavit in response thereto,

THAT, the first Defendant is a statutory body established under

:-,'::p rcvi sior;s c: Section 3 of the Central Bank of Kenya Act,
:.:-,<~:c, ~~0::' of tr.e Laws of Kenya and one of its principal
,',:J.:c;C':S is tc :-cg-ulate the op er a tion s of all commercial banks in

",

-~---'----' ------ .•....

=--~'.",,--
•.• -=-...;...------=-----------------------
' -.."
 >:":~\'es trie regular inspectio-; of the operations and affairs of
.--:.. :::c:· ...
~:.cJ ban.cs L:C en sure :hat the bariks comply with the
=;:":'::s~o:-,s of 2J~ ~11e~2.-,Vsapplicable to their operations together
/
'.--::~-:.ccc;::1i:1ist.ra:ive guidelines issued by the Central Bank, as

:J. ]:~;:':.?,"l', during t~1e cour se of a regular inspection of the Plaintiff

,·.:.....ertaken by the first Dc:endant's Banking Supervision
....... :=:C::2.rtment in August, 2004 pursuant to the first Defendant's
s .a; i tory mandate under Section 32( 1) of the Banking Act, a
:~i.::T.ber of violations of the Bar.kirig Act were cstablish-r! viz :_ .

(a) Lending to both Nakumatt Holdings Limited and

Triton Petroleum Limited in excess of the single
borrower limit of 25% of its core capital.

(c) L:volvement in insider leridrng withou t adequate

security and above the prescribed limit of 20%
of its Core capital.

(c) Inadequate provisions for bad and doubtful

/ debts.

(d) Failure by the Plaintiffs management to submit

accurate returns to the first Defendant.

(a) r\ number of custome- accounts lacked account

c,;;cr::.::--.gdocur:--.::ntation as per the know your
Customer procedures.
 ~" Iji/...
T, roilowing these findings, the management of the Plaintiff
-,:>-~~::(;:,
tr,e viorat.ons whereupon the first Defendant imposed

and the Plain tiffs Managing

action would be underta.ken
::, :,~iT.edythe violat.or,s.

,?;;::: •.:~T, trie firs: deferidarit undertook a follow-up inspection In

2005
:>:·~:".:2~~, ".:0 establish t.ie status of compliance and the
;: .. z: .: ..• -:::i:m c stabii sned that remedial action had been taken on
( IT:;)S: 0:- the violations with the exception of those relating to the
";~.:"lj;.!)your customer procedures'.

8. T3AT, as a result of the remedial action taken by the Plaintiff,

c:-.(~ first Deferida.nt recommended and received the second
Dcferidarrt's approval to renew the Plaintiff's license for the year

.'

9, the first Defendant u ncertook another inspection of the

:'>,:;~j:'[in
.• October, 2005 wh.ch revealed i sornc weaknesses
Y.i::::::-:.. the operations of the Plaintiff including non-compliance
", ::.,'~:~eregulation en classification of loans and the 'Know
(
<;
!.J'j,'.U· customerprocedures'; The inspection report was availed

tc ·c;--.c Plaintiff who accepted its findings and undertook to

rc.i.cc.y the violations.

10, T~bJ::, i:::C first Defendant ur.dcrtook another inspection in

'.['"1./::-::, 2006 which revealed the fcllowing:-

."."..- ---- ------~.

_ --_ .•. ..•.•..
~ ••.••.•J";,_' •__ •
 . .
t
T •

(0) ACCO'-.'"J." oper..ng forms of 45 customer accounts

were not availed.

(c) Tile engclger:.lcnt in offshore money transfers

1
i
involving spLting of transactions was found.

(ci) Ci-:c:;,ues drawn on a customer's account were

cleared throu gh a lawyer's client account.

(c) The same 12,',vyer's client account was being

used as a trading account for some customers.

1 Co .:[IV.:. T, the draft inspection report was forwarded by the first

0c::':er"dant to the Plaintiff on 21st June, 2006 for comments by
t.....
<;; n-:2,nagc:;:n,:nt. :.\,Ieanwhi1e·, adverse reports/ allcgntions on the
Piaintiff were tabled in parliament and in light of this and in
orde:: to protect: the interest of the Plaintiff's depositors and
c:'~ci;;:c:'s, the first DefendaJ~t sought and received the second
::-.J-'::"cnc:ant's approval to place the Plaintiff under statutory
::'~:-:.:""
a.;e=:er:t 1:1 strict exercise of powers vested on it by the

., r
( .....
L,
T, from
}:.~Ji the foregoing = verily believe that the Plaintiff's
;·::':j)~:c2,tion·dated the 23rd day of June, 2006 has no merit and
~o.: :::~:c: riot be s u st ain ed by tnis Honourable Court and confirm
.:::.?,;: wh at is deponed hereinabove is true to the best of my
:.::....
owledge.

.. ·~:-:.c said GERALD

SWOHH :.:;~
)
)
)
--------6~) -------------------
('J~C\..~<./v

-- ..• -..••.•....•.. ""-~----_.

-_._- - _ .. _--_._ .. __ .--..-..-.
 ..i I

3:S~C:X-~ :'rlE ::,,1\VA)JG I tHEG ~

AD\lOCATE,
CO:\::'fISSIO~Z:~ ?Cl~ CWI' -s
PO Bcx ,5907, OC2\j!) ~:~mc: :1"
T"l' ~~S9Ilf:i ;

~Q::j::\=n~S2:0NER FOR OATHS

,i DRA.VTS & FILED BY:-

ox...s.:::'~~&CO~IPANY
AIJVOCATES
3R:) FI.OOR
AC:':( C".c.RDEN HOUSE
::,:;'I:2.5'I' ::~GCHG AVENUE
1:)0 DC;:;::51236
NAlROBI
\

-." ,--------,-------------------------_-.:-
 c-,
Tel.: 254 (020)27173181310722
• iNTEGRITY CENTR.E
Fax: 254 (020) 27197572 0 (i
I.· (VJlley Rd. /Milim; Ini Rd. Junction)
P.O. Box 6113(j Email: kacc@integrity.go.kU l~
00200. NAIR013/; KenyJ

Cur Re;: i<ACC/INQ/6/2/2/(38)

is" December 2004

T:"\8 GO";ernor
Central Bank of Kenya
P.O. Box GQOOO-00200
NAIROBI ~.
REF: INTER AGENCY INVESTIGATION "ON ECONOMIC CRIMES BY
CHARTERHOUSE BANK LTD AND RELATED COMPANIES

Reference is made to the interim report of the Task Force carrying out the above
referenced investigation.

I would like to bring to your attention the hurdles we are facing especially with
respect to obtaining records, information and explanations from the Charterhouse
Bank Ltd, which could delay the expeditious conclusion of our investigations and
probably affect tile eventual outcome.

The bank is central to our investigations as we try to establish commissions of

economic crimes by related companies in the first phase and illegal money
transfers and violation of banking regulations in the second phase.

The foliO\,ying are some of the dmicullies we are experiencing with the bank.

1. The bank does not maintain sufficient bank opening documents and other
documentation for its client's account. For instance;

No bank opening documents and other records were made

available to us for the account of Sailesh Prajapati Account No.
CA 01-00148 with over 2 billion worth of dealings. The
explanation by the bank was that the documents were burnt in a
go-down fire in industrial Area. However this explanation may
not be true since documents such as account opening
documents are kept witr.in the bank for ease of reference

(:\';' No sufficient documentstion eg photographs of account holder,

-: cepies of lO/Passport has been provided for the Account of D.
_...._., Shall No. CA 01-000374 such that it has become difficult to
trace tile identity of the account holder. No documentation has
teen made available tc support over Kshs. 600 million worth of
Transfers from the acccunt.
 (iii) One of their clients, Creative Innovations Ltd maintains four
current accounts with the bank but has only one set of account
opening documents. The bank claims that the other three are
operated by the same set. Curiously, two of the bank accounts
for this client are not disclosed to the Kenya Revenue Authority
yet there is evidence that sales proceeds' are deposited into
these accounts. The accounts for this company were initially
opened by the current Managing Director of the bank and there
is suspicion that thoL;gh he resigned as a director of the
company, he still remains a signatory to the accounts.

Huge sums, converted into foreign currency in excess of

Kshs.157 Million were transferred from one of the secret
accounts to unspecified foreign' destinations through
Telegraphic Foreign Exchange transfers between May 2003 to
October 2004."

(iv) The bank gave us the account opening form of Capricon SRL
for the accounts of Paolo Sattanino. No other documents were
made available to us for all the three foreign currency accounts
of Paolo Sattanino. Huge foreign exchange transfers to the
tune of Ksh.89,000,000 were effected through these accounts to
foreign destinations between May 2003- October 2004.

2. We have evidence that the bank prepared a Bankers Cheque of

l<sh.879,000 and purported to have cleared it through Middle East Bank.
Our investigations have established that Middle. East Bank never cleared
the Cheque but was instead stamped clewed with a fake Middle East
Stamp within Charterhouse bank and the amount of the cheque withdrawn
in cash to unknown destination. We suspect this type of forgery could be
going on a larger scale within Charterhouse Bank as a means of siphoning
cash out of the Bank.

3. The bank has consistently resisted investigations into the accounts' of "
f<:::r:uki Muigua (clients accounts) citing court orders barring any party from
:::',:c'2ssing them. We however have evidence that the bank acts on
unsigned instructions to operate the accounts of Kariuki Muigua. It is
suspectod that these instructions are prepared within the bank and that
the accounts are operated on behalf of big businesses as parallel
accounts for illegal purposes.

4. ~r1formation with the task force indicates that this bank mainly runs
fict:tious accounts for some of the big businesses in town for purposes of
tax evasion, siphoning of money out of the country into offshore accounts
2::C probably money laundering. Some of the bank accounts mentioned
;:1:")ovoare actually run by big business in assumed names, hence the lack
(;; p ro I)I! r dnr.1 irl1r:!1 [; I! inn

,-'.: :-;jSK Force ':8S considered various options, some of which would be
,') ",-,,-10 court orciors, ~',nd do rnari 1 for morn documents or contest some of

2
 ~;-,e court orders their "clients" have obtained to bar any party from
il:\'cstigating their accounts. We 'Jbserved that either of the options would
:-';e fraught with delays and counter court actions which would further
;Gl,:Jedeour progress.

The team is also concerned that while the bank and its clients place
hurdles on our way, they could in the meantime be destroying all trace of
evidence and even liquidating some of their assets and moving them
offshore thus rendering our efforts even more futile.

The Task Force feels that the bank, being at the centra of this
i'w8stigation is at the same time the biggest obstacle to the investigation.
:~is for the above reasons that I a:n writing to you as the Regulator to seek
your intervention on this matter.

r7E ~ rJ
~h'l"Y---~
DR. J. P. MUTONYI, MBS
FOR: DIRECTOR/CHIEF EXECUTIVE

ce. Director
Kenya Anti Corruption Commission

JPM/ea

3
 Kenya National Commission on Human Rights
l st Floor, CVS Plaza. Lenana Road, P.O. Box 74359 - O{l200~Nairobi - Kenya.
Tel: 254-20~27179()8/2717928!271725612712664, Fax: 254~20~2716160
Email: haki qJknchr.ol'g

KNCHR/COF/47

iz" July 2006

Major General Hussein Ali, EBS
Commissioner of the Kenya Police
Vigilance House
Harambee Avenue
NAIROBI

Dear Sir

RE: IN THE MATTER OF THE PERSONAL SECURITY OF PETER

GEORGE ODHIAMBO AND TITUS MWIRIGI RELATING TO EVENTS
SORROUNDING CHARTERHOUSE BANK.

The above named persons have been to our office citing fears for their personal safety
arising out of their role in matters relating to Charterhouse Bank. We are asking your
office to provide both Mr. Odhiambo and Mr. Mwirigi with security to guarantee their
personal safety from harm

The events surrounding this issue are that in April 2004, when Mr. Odhiambo was
employed as the Internal Auditor at Charterhouse Bank, he came across information
touching on various economic crimes that included money -laundering, tax evasion,
violation of the Banking Act and the Central Bank of Kenya Act, being perpetrated by
the owners and management of the bank.

He relayed this information to the Kenya Revenue Authority in the same month. In
August 2004, this information was transmitted to then Minister for Finance Hon.
David Mwiraria with a promise of strict confidentiality. Based on this information,
Hon. Mwiraria through the Central Bank of Kenya constituted an Inter Agency Task
Force chaired by the Kenya Anti-Corruption Commission to carry out a detailed
investigation into the violations cited in that report.

During the course of the investigations by the task force, Mr. Odhiambo assisted the
Task Force with additional information including the forensic audit on Charterhouse
Bank. In August 2004 as the work of the task force was ongoing, Mr. Odhiambo was
advised by his contacts within the Task Force to resign his job at Charterhouse Bank
and in view of his cooperation, the Central Bank of Kenya offered him alternative
employment in February 2005 in the Internal Audit Department

His role in assisting the Task Force was regrettably leaked to the owners and the
management of Charterhouse Bank around November 2004 and as a result he started
receiving anonymous and threatening phone calls through his mobile phone. He also
noticed several suspicious persons inquiring about where he lived. Owing to these
inquiries, Mr. Odhiambo was forced to dispatch his family-his wife and two children-
out of the country. Since then, he has been forced to move houses thrice.

On Friday ih of July 2006, Mr. Odhiambo reported to work and was called by his
supervisor Mrs. Laanoi where he was introduced to a visitor who wanted to speak
with him in private. The Central Bank head of security Mr. Sangoro who was present,
suggested that the meeting take place in his office. Mr. Odhiambo informs us that he
found two other persons in Security Chief's office who he was introduced to as police
officers from Central Police Station.

Mr. Odhiambo was shown a copy of the employment detail form he had completed
upon joining Charterhouse Bank and told that the officers had instructions to
accompany him to his house to conduct a search. They also told him they were
interested in Mr. Titus Mwirigi; a member of the Task Force inquiring into the affairs
of Charterhouse Bank and also a referee to Mr. Odhiambo in the Charterhouse Bank
employment. Once Mr. Sangoro realized that the intended search involved
Charterhouse Bank, he decided to inform his superior-the Head of the Banking Fraud
Irlvestigation Department-upon which the Governor of the Central Bank Mrs. Jacinta.
Mwatela intervened to stop Mr. Odhiambo's intended arrest.

Mrs. Mwatela after scrutinizing the documents presented by the police established
that they lacked any legal basis for his arrest and therefore asked the police to leave.
The affidavit these police officers presented as a basis for Mr. Odhiambo's arrest was
found by the Governor to be unenforceable, inauthentic and illegal because it was not
signed by the present Manager of Charterhouse Bank Ms. Rose Detho. We are
therefore asking your office to investigate the circumstances under which the police
allegedly based their actions and whether the attempt to arrest Mr. Odhiambo had
been authorized by any of your officers. We have reason to suspect that the purported
police actions could be dubious because the police have not returned to the Bank since
then.

Since this incident, Mr. Odhiambo informs our office that he has received numerous
telephone calls warning him of dire consequences in view of the events that now
surround the closure of Charter House Bank. He informs us that he has also received a
lot of calls from people who claim to know these people, warning him of their
capabilities to harm him. The callers have even told him to leave the country if he can.

We are formally asking your office for a written guarantee on the personal safety and
security of Mr. Peter Odhiambo and Mr. Titus Mwirigi. Our basis for asking for Mr.
Mwirigi's guarantee of safety is the fact that those threatening Mr. Odhiambo with
physical harm have also expressed interest in him.

Article 9 of the International Covenant on Civil and Political rights provides for the
right of everyone to enjoy security of the person which right is also guaranteed by
Section 70 of the Constitution of the Republic of Kenya. Every Kenyan is entitled to
life, liberty, security of the person and the protection of law. Now that Messrs
Odhiambo's and Mwirigi's personal safety has become a matter of national concern
on account of the events that surround Charterhouse bank, it is our sincere belief that
the police have a duty to ensure that their right to security of their persons is not
infringed.

We further draw your attention to Section 392 of the Penal Code (Cap 63 Laws of
Kenya) which imposes a duty on citizens to prevent commission of crimes by making
it an offence to neglect to prevent a felony. It reads:

"Every person who, knowing that a person designs to commit or is

committing a felony, fails to use all reasonable means to prevent the
commission or completion thereof is guilty of a misdemeanour"

May we also add that should anything untoward compromise the safety and security
of Mr. Odhiambo or Mr. Mwirigi, then suspicion will remain that those responsible
are the owners of Charterhouse Bank, their agents and / or some elements within the
police force.

We are looking forward to receiving your response on the above issues at the earliest
possible opportunity. In the meantime, we have taken the liberty of copying in the
Ministers of Justice, Internal Security, and the honourable Attorney General inviting
their intervention on these issues of immense public interest.

Sincerely

~~~

Maina Kiai
Chairman

CC: Hon. Martha Karua, EGH, MP

Minister for Justice & Constitutional Affairs

Hon. Amos Kimunya, EGH, MP

Minister for Finance

Hon. John Michuki, EGH, MP

Minister of State in the Office of the President

Hon. Amos. S. Wako, EGH, EBS, SC, MP

Attorney General of the Republic of Kenya

Mrs Jacinta Mwatela

Governor of the Central Bank of Kenya

Justice Aaron Ringera

Director, Kenya Anti-Corruption Commission

Mr. Michael Waweru

Commissioner General, Kenya Revenue Authority

Ms Rose Detho
Statutory Manager, Charterhouse Bank

Mr. Peter George Odhiambo

Auditor, Central Bank of Kenya

Mr. Titus Mwirigi

Consultant
~~~~~\~.
~------------ii~;i;'I'-=:/~Z:':"-'"
-::;-.
~: =._....~~
.. ,7,...7·''':?!':~~__ 1~:·'~·If~~_~...,-::7,.~_j>-.0:",~"
:~< .:::. --
UJ·

ll/l1 Vt Lj)~' hr ~h«a vt CD-

fh1-- tIl')'?/'< r..~
2<£/£ (ok
~yY7
~
MINISTERIAL STATEMENT ON THE INTER-AGENCY INVESTIGATIONS ON
' . -
ECONOMIC CRIMES BY CHARTER HOUSE BANK LIMITED AND RELATED
COfAPANiES, 27TH JUNE, 2006

Mr. Speaker Sir, I beg the indulgence of the house to clarify certain
matters related to Charterhouse Bank, as a result of documents tabled in
the house
, by a member, and subsequent allegations made.

The media reports and the different statements that have been made on
the Charter house Bank, have created the impression that:-

(a) The charges facing the Governor of the Central Bank of Kenya,
Dr. Andrew Mullei, are as a result of his efforts to bring to a halt
tax evasion, money laundering and 'other related offences by
Charter HouseBank Ltd and related companies;~cording[y, I
f
wish to set the record straight on this very important national
issue ~

(b) That the government has been reluctant to act on the findings of
the investigation.

1. On 15" December, 2004, the inter-agency task force investigating

-===-=-
economic crimes by Charter House Sank Ltd wrote to the Governor and
informed him that the Charter House Bank was complidt in money
laundering, abetting tax evasion and breaches of rules and regulations. __
 2, The Governor responded on 22nd December, 2004, advising KACCto seek
the Attorney-General's opinion with respect to its powers to deal with
such problems. He, however, said he would take up KACC's comments
on matters relating to Charter House Bank's compliance with the
relevant provisions.

3. KACCand KRA continued with investigations into the matter against the
mentioned firms that had accounts at Charter House Bank. The
(~ investigations are at different stages of completion and appropriate
actions will be taken. I wish to request the house to respect the
confidentiality of the investigations in order to protect the outcomes
from unnecessary interference.

Mr. Speaker, as regards the investigation and prosecution of the Governor,

the facts are:-

(a) Investigations were commenced in June, 2005 at the sole initiative of

C KACCbased on information received.

(b)The investigations, were concluded on 21st February, 2006 and file

, .

forwarded to the Attorney-General with recommendation to

prosecute the Governor on four counts of abuse of office.

(c) The Attorney-General approved the charging of the Governor on 22nd

March, 2006.
 (d)The letter from the Governor to the Minister for Finance on the
status of Charter House Bank investigations in which he requeste.d
withdrawal of the license was done on zo" March; 2006, exactly one
month after KACCinvestigation file was sent to the Attorney-General
and just two days before the Attorney General approved our
recommendations to charge the Governor.

Mr. Speaker, Han. Members may wish to note that in April and July 2005,
the Governor made recommendations for renewal of the Bank's license and
opening
. of a new branch at Nakumatt Supermarket in Nairobi on, grounds
that the overall financial conditions of the bank was satisfactory and
that the bank was fully compliant with the requirements of the Banking
Act and th.e Central Bank Prudential ~egu(ations.,

Basedon the chronology of events, it is clear that:

(i) The charging of Dr. MuUei in court and his subsequent suspension
.
I"~ , is based on specific charges, and had absolutely nothing to do with
his stand on the Charter Housebank;

(ii) Dr. JAullei did not act on the recommendations of the inter-agency
task force to take action against Charter House Bank for one year
and three months;

th
(iii) As tate as 16 January, 2006, the Governor recommended the
renewal of the Bank's license on the basis that the institution has
maintained a sound financial condition over the years and is in
compliance with the Banking Act and Central Bank Prudential
Regu Iati ons"
 (iv) Dr. MuUei wrote to the Minister for Finance on the eve of his
being charged in court.

(v) Follcwing receipt of the letter of March 20, 2006 I directed CBKto
send a team to Charter House Bank to update the status of the
2004 report as at end of March 2006. This report was completed
and given to the managers of the Charter House Bank on June 21st
for their comments in accordance with existing procedures.
While awaiting the response, which is expected next week, a
C leaked copy of the November 2004 report was tabled in
'Parliament. This caused unnecessary panic in the banking 'sector
and in order to protect the interest of. depositors and the bank, I
regrettably approved the appointment of a Statutory Manager for
Charter House Bank on June 22nd, 2006.

Mr. Speaker, I trust that members of this August House and the public at' ..
large are now better informed on the facts of this matter.
 BANKI
Governor KUU YA
KENYA

Il:iilc Scla"ie Avenue

P.O. Box 6OCOC Nairobi Kenya
Telephone 226.:J J Telex 22124

Han. r'\:;"l05 1\:;·:·L.:n::/uI EGH, MP

1\1irlis:er fa:" ?::~J:-'\:c
The Treasury'
Nairol»

~l-~~~
)
STATUS OF CHARTERHOUSE BANK LIMITED INVESTIGATIONS

FUliher to my previous briefings to the Minister for Finance on September 23, 2004 and
October 29, 2004, I would like to provide an update on the status of investigations
relating to Ci~clrterhoLlse Bank activities.

As a backg~OLi~~dof these investigations, the Centra] Bank had set up a Due Diligence
Team in 200.3 to examine more carefully than was generally done by Bank Supervision,
the i)clil}i'ies of banks that apj)earcd to have some problems. On the basis of
infor:11<:ltioi1r,::cei'v'cd from the Minister for Finance, the Due Diligence Team inspected
Charterhousc Gclnk activities. Charterhouse ostensibly looked satisfactory but detailed.
examinilt:on {,)und thi'lt a number -of account holders actually had multiple bank
accounts ','ihid, is (J s:andard way of detecting potentia! tax evasion. The corporations
and individual; that were identified are shown ir: the Results section below.

Using the infnrmii:iOi1 received from the Minister for Finance, the Due Ditigence Team
CX<1111inedthese accounts f!1ore closely and it was found that almost all of them were
linked to NakliITlatt Holdings. The CBK through the Governor informed the Minister for
Finance of the outcome of these investigations and got his approval to convoke a
meeting with (;H~ Director, I\:enya Anti Corruption Authority (Justice A Rinqera), the
Permanent Secretary, GO'Jernance and Ethics (,;ohn Githongo), and the Director, Public
Proseci.ltic:ls "Phiii:J Murgor) to discuss the way forward.

As 2. cCI1seq'_:'~:~C8.<1Joint Action Team VJuS set up under the leadership of I<ACC. Dr

John ;Vkto::>:. '\SSiS:illit Director, [\ACC was Chairman, other Iv-\CC members were
l--!cn~; >';':/;:: :c. Ci,:c:m Lukai'a, Davis Farah, .\n:ony Kahiga and Vincent Kiptoon, all
!\ACC i:-';es:i'jr.::c:·s r:~lci Ms Fatu.na Sichale, legal Officer, KACC. The Central Bank
'N"" ,·cprcs(':-.:,,(, )\.J '::;e:-"lci ).·y.)or'~i:l, Director of Fin~lnci<ll Institutions Supelvision

1
 rc;yc:;cn:cc! 1_);; \lr \1el Smith, Forensic Auditor and KRA by Mr J G Nduati, Senior
Deputy Co.r.rnissioncr (Investigations). The ?ublic Prosecutor's office was invited to
attend but \.,:s r.ot ~'egular in attendance.

This /vction Tcarn, in view of its membership, was able to do more detailed investigation
since informarion from alternative sources was made available which would not have
been possible under the Banking Act. This investigation fully endorsed the suspicion
th
that there was significant tax evasion. Up to the 30 November 2004 there were two
interim reports prepared. Thereafter the CBl< was not informed nor was it requested to
provide further support. The second interim report of the Joint Action Team, dated 30th
November 2004, is the basis of the data presented in this letter.

Since l<RA has the capacity to work on retroactive information, it was to pursue taxes
while 10\CC would pursue economic crimes that were identified after 2nd May 2003, the
effective date of the Economic Crimes Act. More detailed work would undoubtedly have
) yielded more siqnificant results.

Nevertheless, will: the information available in the second. interim report, one can
conclude that these orqanizaiions (including Nakumatt) would appear to have evaded
tux wilh the collusion of Charterhouse Bank to the extent of between Ksh.2 and 3 billion
in any one year. lf penalties were levied on top of this it would be much more than
twice this amount. Furthermore, the partial accounts that have been examined only
cover one year and there is every reason to believe, in view of the fact that these
accounts all had opening balances, that the operation has been continuous for 5 to 6
years.

There is an extensive group of allied accounts that were identified but not fully
examined. These arc mentioned generically here below. These undoubtedly involved
significant tax evasion if not other economic crimes.

Results from the Second Interim Joint Task Force Report MINISTER FOR I=INANCE

1. Creeli',lc Innovations Ltd

RECEIVED
2 1 MAR 2006
Discovered VAT evasion of !<5h.247 mi.lion o n Rm jOOo 7
NAIROBI

• :\0 account opening forms

• ~\O records of account were available (it was claimed that these were
destroyed by fire)
• :.::·:~o\·cr)-\5h.2.186 billion from Nakurnatt

:. ~.. .~...
. ,. • ....:.! ! .'.' r
2
 :--~o:-.c:.:r<::1sfcrrcc! to Sundry' Creditors and from there transferred overseas.

MINISTER FOR FINANCf.

1\ot aVclil,lble due to court order - but are as follows:
Ksh. million RECEiVED
A'c 1 - turnover 1,355 2 1 MAR 2006
Alc 2 - turnover 26
P.,"c 2 - turnover 328
TotJI turnover .tl_02J:iUltoQ

5. W [ T%~\;(MuthCligCl) Ltd

Suspected money laundering as

• SCl!CS were Ksh. 1.35 billion; and

'. P.ccei;)ts were I-<Sh.5.89 billion

G. Paob Si1lti1nino

e 1\0 account opening forms

o Deposits to $ and Euro accounts (1.'4 - 3/11/04) in 7 months Ksh.52 million
and I\5h.40 million respectively.

7. Tusker Mi1ttresses Ltd

Discovered VAT evasion Ksh.270 million

The CBJ<'s Due Diligence personnel including Mr G Nyaoma, Director of Financial

Institutions Supervision, and Mr M Smith, the Forensic Auditor, suggesfed that the
information available to date from the Joint Task Force showed that client accounts in
ChClrterhouse Bank when linked with information from KRA would yield significantly
more tax but it would need more detailed analysis than was available. In paliicular,
:'-;c:!.::LI1'C:ltt
:-fci~;in~s and Kingsvv'()y Tyres accounts raised serious questions relating to
collusion with Cha:·terhouse Bank.

For ::·.StCl:1CC.
i: should be noted that Nakuma:t has never shown a profit to dote, always
losses. lts \'X: jJCl'ylments are be[\l;een )\5h.33 and Ksh.85 million per annum. Uchumi
pays Ksh.500 to Ksh.600 million per annum. As Nakurnatt's turnover is much larger
than Uchu:»i, you would expect cOllJoration .ax and VAT to be in the range of Ksh.1.8
to 1\5:,2.5 0::::cn per annum.

r·:' (' ~:';. ~'~,"r

,", "

3
 r<j:-igS·\l ..'(lY Tyrcs and its associate companies as well as the John Harun Group had
multiple accounts whicl: arc linked to the Nakumatt network but were not fully

On the '0L:S:~ ')~ ;Lis information, it now seems appropriate that the Minister for Finance
ccul.i ;):"O'.:c)<~ ;<:~:\'.\Iiil; the des of the identified accounts. The Minister may also query
ii.c i~'.CS: z;::c::,Z<CjL;S difference between Uchurr.is payment of VAT and Nakurnatt's.

I am concc-r.cd that the evidence of collusion between Charterhouse and its customers
il.:r::;~_:es Know Your Customer reoulat.ons seems to have made Charterhouse
\..',,:1:CI: oJ ~

[3,111;, c::~;i.lb:::y \.0 the probity of the financial sector and I would recommend that you
consider witi;cL"'lwing its licence. Clearly any action should be taken in such a way that
.nforrna.ion c;,:';'cnl\ stored in the bank cannot be destroyed.

I am sure that you ore fully aware that this letter should only go to the authorities whom
you may direct to take. action. \

.. ,.. _- •.......-

! ivi/N/STER ~OR FINANCE

/rtROEIVED
2 1 MAR 2006
I I !:Sox J0007
NAIROBI
I\LLachmcnL~ (copies oj 2 preuiou~ briejs jor information)

"

" ,'. ':' •••.• '- • .11''''

.r- -...- '. . ~--.

., .: \" ( . 4