CBK boss scoffs at threats to staff auditing Imperial Bank
What you need to know:
- Regulator sheds light on collapse of various financiers and a way forward.
Employees of the Central Bank of Kenya have received threats over the ongoing forensic investigations into the collapse of Imperial Bank, Governor Patrick Njoroge told the Senate Finance Committee yesterday.
Dr Njoroge said there had been external influence seeking to move investigations in a particular direction though the regulator has resisted in its quest to unmask individuals and directors behind the fall of the bank.
“There are forces that wanted us to go the other way but we said, 'No, thank you for your advice'. My staff have received numerous threats to their lives,” he told the committee chaired by Mandera Senator Billow Kerrow.
He said his workers had been under intense pressure to move in a particular way, especially with the ongoing forensic audit that is being undertaken by an external firm.
“We understand what we have been dealing with. We assure you that we will do the audit without fear or favour despite the threats. The Sh39 billion that was looted in Imperial Bank is the new high water mark that makes the Goldenberg scandal look like kid’s game,” he said.
Dr Njoroge said the process would proceed and urged Kenyans to be patient as auditors conclude the report by the end of June.
Makueni Senator Mutula Kilonzo Jr asked the governor to table measures adopted to protect the staff that are at risk of being eliminated.
“One thing that worries me and my staff is the threats over these investigations. I have assured them that I will do everything under my power to protect them. I will go to whatever length to ensure their safety,” Dr Njoroge said.
SHED LIGHT
He was appearing before senators to shed light on the status of Dubai Bank, Imperial Bank and Chase Bank, which collapsed in August, October and April respectively.
Chase Bank has since been reopened and is currently being managed by Kenya Commercial Bank.
Dubai Bank and Imperial Bank are under the management of the Kenya Deposit Insurance Corporation.
Dr Njoroge said Imperial Bank has been in receivership for the past six months for several reasons.
“The bank was placed under receivership on October 13, 2015 for widespread manipulation of the IT system to conceal financial malpractices, indication of money laundering and cheque kiting schemes in the bank, huge bad loan book, fictitious deposits, unsecured insider lending and conflict of interest by shareholders and directors,” he said.
Dr Njoroge said Imperial Bank directors had failed to cooperate with the CBK on the reopening of the lender. He said the bank directors had failed to deposit Sh10 billion as the first step to reviving the lender.
“They said they wanted to pump in Sh10 billion but six months down the line, they have not deposited a shilling. Imperial Bank requires up to Sh34 billion to be revived,” said Dr Njoroge.
