The revelation by Imperial Bank in its suit against companies and its senior management brings back memories of the collapsed Charterhouse Bank in 2006.
One of Charterhouse Bank’s key depositors, W.E. Tilley (Muthaiga) Ltd, is also entangled in the Imperial Bank fall.
This week, Fidelity and Prime banks moved to court to be enjoined in the Imperial Bank suit after feeling exposed by W.E. Tilley.
Fidelity says part of the land affected by the freeze orders issued to Imperial Bank was used by W.E. Tilley and Value Pak Foods to get loans. Prime bank is also laying claim on two other plots in Ruiru, also frozen.
“It is just that Fidelity be enjoined in these proceedings. The two properties were charged during the normal course of business between W.E. Tilley and Fidelity. Fidelity has the first right over the said properties,” said the bank.
Fidelity Bank has accused Imperial Bank’s receiver managers of intentionally ignoring its stake in the land in spite of acknowledging that the land was used to secure loans.
W.E. Tilley Limited has admitted receiving $100 million from the bank and offered to have a second charge created over its properties.
The firm, which specialises in fish products, according to its website, is not a newcomer to banking scandals.
In 2006, it was mentioned in the Charterhouse bank collapse.
While presenting a dossier on the extent of fraud and tax evasion in Charterhouse Bank, Mandera MP Billow Kerrow told Parliament that the fish firm with investments in Tanzania was one of the players in the scandal.
It was said that investigators found out that the account held by W.E. Tilley showed receipts of $58.9 million against sales of $1.35 million.
A search at the company registrar shows that the firm was registered in Kenya on March 21, 1969 and is involved in butcheries, slaughtering and selling of all kinds of meat.
It is owned by Mr Nashir Haideralli.