The apparent collapse of Chase bank has developed a major catastrophe in Ali Hassan Joho-led Mombasa County Assembly.
This is after it emerged that the County MCAs had active personal accounts at the perturbed Chase Bank,which has since been put under receivership by the Central Bank of Kenya (CBK).
According to detailed credible reports,Governor Joho’s County assured each MCA a loan in the regions of Khs.3 million during the 2013-2014 financial year,after which they opened accounts at Chase Bank.
According to the Assembly Finance Committee Chairman, Mohammed Hatimy,the MCAs opened personal accounts while the County Assembly guaranteed the funds, which were to be used to buy cars or pay mortgages.
“I know the Assembly had served as a guarantor for the loans. The MCAs had personal accounts with the bank through which money for servicing the loans was channeled,” said,Mohammed Hatimy.
Earlier reports indicated that the Mombasa Assembly had indeed opened its personal account with the troubled Chase bank.