Imperial Bank chiefs turn heat on Central Bank officials

Imperial Bank directors have claimed that senior Central Bank of Kenya (CBK) officials who were complicit in fraudulent transactions that led to the collapse of the financial institution in 2015 are now an obstacle in its restructuring and revival.

The directors told Parliament on Tuesday that CBK officers were hindering effective investigations into fraud that precipitated the fall of the financier and are now pressing for its liquidation to cover their involvement in the scam.

CBK appointed the Kenya Deposit Insurance Corporation as the receivers of the bank in October, 2015 for 12 months following its collapse amid revelations that up to Sh34 billion of shareholders’ deposits were missing.

“It is plainly obvious that such complicit officers cannot be entrusted with the investigations which, if properly conducted, would unearth and expose their fraudulent dealings in cahoots with former group managing director Abdulmalek Janmohamed and senior employees of the bank,” said Imperial Bank chairman Alnashir Popat in his address to Members of Parliament.

He said the conflict of interest impeded the objectivity of overseeing the investigations, meaning that the culprits might never be brought to book.

“These officers have effectively manipulated the receivership process so as to deflect attention and protect themselves,” he told the National Assembly's finance committee yesterday.

Central Bank Governor Patrick Njoroge has, however, consistently blamed Imperial Bank directors of refusing to cooperate with the regulator on investigation and revival efforts.

Mr Popat was accompanied by other directors of the bank.