Central Bank of Kenya staff ‘had role in Imperial collapse’
Former Imperial Bank bosses appear before a Nairobi court where they were charged with conspiracy to defraud the firm. PHOTO | PAUL WAWERU | NATION MEDIA GROUP
What you need to know:
- Imperial Bank Limited in receivership and CBK lodged a fresh suit against former directors and shareholders in a bid to recover Sh45 billion that sent the lender into receivership.
- The shareholders oppose the move, arguing that CBK was complicit in the activities that led to the bank’s collapse.
Shareholders of the fallen Imperial Bank say Central Bank of Kenya employees participated in a fraud the regulator wants to investigate.
Imperial Bank Limited in receivership, Kenya Deposit Insurance Corporation and CBK lodged a fresh suit against former directors and shareholders in a bid to recover Sh45 billion that sent the lender into receivership.
The shareholders oppose the move, arguing that CBK was complicit in the activities that led to the bank’s collapse.
“CBK officers were compromised not to inspect books. Shareholders have also learnt that former Governor Njuguna Ndung’u had a more than cosy relationship with Imperial Bank MD Abdulmalek Janmohamed,” the shareholders said in the court papers. Janmohamed has since died.
They attached email conversations showing payments made by Janmohamed for Prof Ndung’u and his wife to visit a spa in Thailand.
LIQUIDATE THE BANK
They said they believed KDIC and CBK only wanted to liquidate the bank because history showed that the beneficiaries of such moves were usually liquidators and consultants, not creditors or depositors.
The shareholders said they were not engaged in the running of the bank. However, after the death of Janmohamed in September 2015, revelations emerged of fraudulent disbursement of vast amounts.
Upon realising the fraud, an emergency board meeting was formed where it was resolved that a firm — FTI — be appointed to carry out a forensic audit.
The shareholders are Kenblest Ltd, Imaran Ltd, Reynolds and Company Ltd, East Africa Motor Industries Ltd, Momentum Holdings Ltd and Abdulmal Investments Ltd. The case will be heard on October 17.
