This story keeps evolving in new ways every day.
http://www.businessdaily.../-/11l2t5s/-/index.html
"A senior State House official and a Safaricom executive were two days before Chase Bank collapsed paid back money they had invested in the bank through a private placement late last year, raising questions as to whether they had prior knowledge of the looming shutdown.
The two were among the select group of investors that Chase Bank had invited to participate in a Sh2.3 billion fundraiser, effectively making them shareholders in the company.
But in a move that has taken the banking fraternity by surprise and brought into question the integrity of Chase Bank’s operations before the Central Bank of Kenya (CBK) took over its management, the select group of shareholders were paid back money they had invested in the private placement (share capital) just two days before the shutdown.
The transfers amounting to about Sh40 million were made on April 5, two days before the April 7 closure.
There are questions as to how Chase Bank allowed incoming shareholders to liquidate their stakes, given that shares can only be transferred to another investor but not withdrawn in the form of cash.
The upshot of the mysterious Chase Bank equity-to-cash conversion is that depositors are higher up in the compensation hierarchy in the event of bank liquidation, unlike shareholders who are the last to be paid.
Paul Njaga, the bank’s chief executive, caused the payments to be made through an email sent the same morning to his head of finance, Catherine Mugane. "