Bank in Sh1.6bn building sale trap

Spire Bank’s move to sell a Kilimani-based Sh1.6 billion building owned by Ravasam Development Company has entangled it into an ownership battle between shareholders of the real estate firm.

Two businessmen based in Reunion, a dependency of France, have claimed that some employees of Spire Bank (formerly known as Equatorial Commercial Bank) colluded with Ghanaian national Eric Agbeko and Kenyan Philip Nyambok to fraudulently borrow Sh190 million from the lender in Ravasam’s name.

Reunion-based Farouk Ravate and Justin Samourgompoulle claim that in 2008, they incorporated Ravasam with the help of Mr Agbeko and Mr Nyambok but that their Nairobi-based associates instead fraudulently took full ownership of the real estate firm.

They add that Mr Agbeko and Mr Nyambok then borrowed colluded with employees of Spire Bank, to ensure the processing of a Sh190 million loan despite protests from Mr and Mr Samourgompoulle on the alleged fraud scheme.

Spire’s move to sell Elysee Plaza to recover a Sh700 million debt has attracted a lawsuit from Mr Ravate and Mr Samourgompoulle who want the sale stopped until another suit over ownership of Ravasam has been determined.

READ: Mwalimu sacco to pump Sh375m into Spire Bank

Egypt investment bank gets brokerage licence

Delayed documents affected our training, Sum, Chelimo say