- The SBM Bank, which took over the Chase Bank, claimed that the Minister of Minerals Ali Hassan Joho had a loan of KSh 54.5 million
- Joho confirmed that he received a loan of KSh 40 million from the looted lender and repatriated KSh 43.2 million
- Even though the former governor of Mombasa insisted he paid his loan arrears, the bank asked the court to prosecute him for violating the law
Minister of Minerals (CS) Ali Hassan Joho He denied that, by August 1, 2024, he owed the SBM Bank (Kenya) Ltd of KSh 54.5 million on loan arrears.
Source: Facebook
Why Joho denied having loan accumulation
Joho wants the bank case against him to be removed and pay for it.
Joho revealed that he received a loan of KSh 40 million from Chase’s dead bank Bank (Kenya) Ltd in 2014.
In 2018, SBM took the bank after entering the receipt.
The minister claimed he paid KSh 20.2 million for the loan through the legal company, leaving the remainder of KSh 19.7 million.
The minister noted that on July 22, 2016, a separate lawyer sent a letter to the recipient of the Chase Bank Ltd., informing him that the bank had KSh 23 million on his account on his behalf and ordered the officer to use the money to pay the remainder.
“By July 22, 2016, the defendant had paid KSh 43.2 million to Chase Bank (Kenya) Ltd. This was KSh 3.3 million more than the amount borrowed and more than the acceptable cost of lending to Islamic Bank regulations,” he argued in the Mombasa Supreme Court, as reported by Daily Nation.
Source: Facebook
In court documents, CS further states that it is Chase Bank, not SBM, which owns the account he had.
Did Joho repay his loan arrears?
Joho confirmed that the money that Chase Bank had brought to him on January 3, 2014, was fully paid, without arrears.
“The case brought against the defendant has no basis for the fact of standing,” His defense team said.
According to Joho, the benefit of any remaining amount determined using Islamic Bank regulations cannot reach KSh 54.5 million that SBM Bank claims, even if there is a remainder after making a total payment of KSh 43.2 million.
“The defendant denies the complainant’s claims and asks that the same will be dismissed by the cost,” He told the court.
Why does SBM bank want Joho to be charged
Even though Joho insisted that he had paid off his loan, the bank asked the court to prosecute him for failing to pay.
The financial institution revealed that under Islamic banking rules, the loan was matured and stopped making a profit on January 3, 2024.
It said that despite using the defendant, many of the allegations of demanding that he pay him his eligibility, he ignored, failed and completely refused to make any payment that forced the complainant to file a lawsuit.
Joho revealed during the prime minister’s post that he owns millions of shillings and a wealth of KSh 2.3 billion.
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