Boardroom wars at Prime Bank – Weekly Citizen

Ndubai

Rasik Kantari

Trouble is brewing at Prime Bank with a section of directors calling for one of them James Mungai to step down from the board.
They claim, since Mungai is facing criminal charges linked to multimillion Kenya Power scandals, his image is tainted and thus affecting the operations of the bank. The banking industry is fluid and competitive hence needs directors with clean record.
Already, the directors pushing for his removal are planning to write a petition to Central Bank of Kenya the banking industry regulatory body. As a director with dubious background, they claim he does not qualify to be on board.
As per now, Prime Bank directors are Rasik Kantaria (chairman) Shantilal Shah (vice chairman), Amar Kantaria (executive director), Bharat Jani (MD), with directors James Njuguna, Terry Davidson, David Hutchison, Jinaro Kibet, Farid Mohammed, Binian Yohannes and Skander Khalil Deslati.

James Mungai

Mungai is associated with Muwa Trading Company which has been embroiled in the supply of alleged fake transformers and which enjoys protection of powerful faces at the Energy ministry.
Investigations have revealed that Muwa has silent partners behind it and during the Mwai Kibaki regime, it was paid multibillions of shillings to supply electricity polls. It had a treatment site next to Lake Elementaita Lodge along the Naivasha and Nakuru Highway, a hospitality venture owned by the late powerful minister of state Njenga Karume.
According to insiders, Mungai, the principal shareholder of the firm and a silent wheeler dealer, was close to once powerful Kenya Power Company and Lighting now Kenya Power managing director Samuel Gichuru.
A petition has been filed in court as to why Energy PS Eddy Njoroge has not been prosecuted with senior managers at Kenya Power in criminal charges they are facing when part of Muwa tender awards were done.
Gichuru’s Windward Trading was taken a court in Jersey Island and it was ruled that Gichuru had received bribes from foreign business entities that were contracted to KPLC during his tenure at the helm. Mungai was among those few who stood with him at that time in point.
Njoroge replaced Gichuru at the then plum energy parastalal before it was ran down.
But perhaps what is currently haunting Mungai is his role in the breaking up of Gichuru family marriage.
After their wedding at the Dr Arthur Memorial Church in Nakuru in 1967, Gichuru and Salome Njeri marriage was stable. They first lived in Freehold Estate, Nakuru, moved to Naivasha and Nyahururu towns and settled in Kilimani area later shifting to Muthaiga and Kitisuru.
As the marriage flourished, Mungai then doing business at KPLC helped Bilha Wanjiku Gachoki – to be employed as an assistant officer at KPLC courtesy of Gichuru. It is said, Mungai was also then dating a relative of Bilha.
At one time, Salome approached Mungai to intervene after learning Gichuru’s alleged adulterous relationship with Bilha. By then, Gichuru was cohabiting with her at Nairobi’s Spring Valley and had on several occasions taken her for holiday to Mombasa and London. Mungai is said to have told off and chased Salome as he was pretty aware that Gichuru had weakness for skirts and fronted Bilha to win Gichuru’s heart and have an insider to cut deals and push for payments.
Bilha was promoted to become chief manager, human resources at KPLC. Here, she helped Mungai land lucrative tenders at the KPLC.
After Mungai brokering the relationship, he made sure Bilha’s marriage to Ethan Ndubai was dissolved and Gichuru took over.
Salome had made Mungai when both worked at the defunct Nairobi city council. Bilha was then married to Richard Ethan Ndubai, the embattled head of the National Youth Service who was caught in Sh9 billion scandals.
Gichuru’s wife, Salome, now deceased, died demanding shares in their multibillion shillings empire they owned.
After being instrumental in breaking the marriage, Mungai connection at Kenya Power never ended. In fact, it is whispered that he is one of those Gichuru has been using through his network in the energy sector to do business,
Former KP chief executive Ben Chumo, his successor Ken Tarus and a number of other senior managers were arraigned in court as Muwa Trading Company Ltd had supplied the state corporation with defective transformers. Muwa’s three directors were also enjoined in the suit.
A part from James Njenga Mungai, being the director of the company, other directors are – Antony John Mungai and Grace Wanjira Mungai.
Last week, Weekly Citizen established that the older Mungai is sickling due to current pressure he is undergoing.
When attending criminal court proceedings, Mungai drives state- of-art Mercedes Benzes that will match a suit he is wearing on that particular day.
James Njenga Mungai is the father of Antony John Mungai, and husband of Grace Wanjira
Mungai, surprisingly, just like his father, Antony also has a taste of life.
Informed sources reveal that the family is notorious of money laundering and inside bank trading activities. It was on these grounds that it was not easy for the state to freeze accounts of Muwa Trading since once the money is credited; it is immediately shifted to Mayfair International Casinos which the family owns. Even in their Lavington in Nairobi residence, apart from powerful vehicles parked, it is not easy to get any money in the family residence.
To further hide their ill-gotten wealth, they operate high end restaurants such as Mchana Bar and Restaurant opposite Nakumatt Prestige, Ngong Road and the exclusive Mercury Lounge restaurants one at the Junction Mall near Dagoretti Corner and another one at ABC complex, on Waiyaki Way.
It is also being whispered that the casino and bar business is to hoodwink Kenyans that the family works hard to earn a living when the true case is that they are involved in mega scandals.
Weekly Citizen could not establish whether it is true that the family also has shares in Mayfair Bank associated with politician Peter Kenneth but what emerged is that Kenneth is close to the Mungais.
John is said to be an avid pool player, prefers to hang out at Mchana restaurant in the evenings where he enjoys the game with who is who. We could not establish if John is married but we were only told being the only son in the family, he is the darling of the mother and father, his fellow city celebrities due to his generousity.
Like his father, he drives high end custom made European machines namely Range Rovers, BMWs, Jaguars, Rolls Royce and Mercedes.
With crucial prosecutorial documents on this case missing, many questions are begging answers. Mungai is one of directors of Prime Bank, an institution that has been implicated in various deals in Kenya and Uganda.
In Uganda, Prime Bank was linked to troubles then Crane Bank was experiencing. The bank chairman, Rashik Kantaria name featured in the takeover of Crane assets by Uganda Central Bank. It is said Kantaria was close to Crane Bank owner Sudir Ruperalia.
Apart from Muwa, the family is associated with Pelican Insurance Company. When Mungai was chairman of National Hospital Insurance Fund, Pelican landed lucrative business deals at the fund. Mungai started as a busar at Nairobi primary school.Family business firms evade taxes. Questions are asked why John is allowed to drive around with heavy arms in cars surrounded by chase cars.
For now,as Mungai health is under scrutiny and with fear the criminal case facing family members is costing them,they are now planning to shift to real estate developments away from supplies.