A magistrate’s court has freed former Chase Bank chairman Zafrullah Khan on a Sh2 million cash bail pending hearing and determination of his case.
Mr Khan, who is facing allegations of defrauding the lender nearly Sh1.7 billion, had his bond terms reduced from a surety deposit of Sh60 million.
In her ruling, magistrate Martha Mutuku upheld arguments by Mr Khan’s lawyers seeking review of the bond terms. “The accused is serious about seeking medical attention abroad and therefore not a flight risk. I, therefore, order that he be released on a cash bail of Sh2 million,” she ruled.
The magistrate also ordered that in the alternative, Mr Khan pays a bond of Sh10 million as well as present two sureties who are to deposit Sh2 million each to the court.
She further directed him to comply with the conditions set by the investigating officer and warned that the Sh2 million cash bail would be forfeited to the State should Mr Khan fail to appear in court for the trial.
The former Chase Bank boss was charged last week with conspiring to defraud the lender Sh1.7 billion by falsely pretending that the monies had been disbursed to four companies as genuine loan facilities.
He was also charged with stealing the huge sum of cash and failing to comply with provisions of the Proceeds of Crime and Anti-money Laundering Act.
The offences were allegedly committed between 2012 and last year on various dates.
He had pleaded not guilty to the charges but remained in custody at the Kileleshwa Police Station because he could not raise the Sh60 million surety.