Imperial Bank owners claim KDIC cleared them of wrong doing in lender’s collapse

Shareholders of the collapsed Imperial Bank have filed documents in which they argue that the receiver manager, Kenya Deposit Insurance Corporation (KDIC), had absolved them from blame over the collapse of the lender.

The directors, in their response to a case in which the Central Bank of Kenya (CBK) is seeking to have their assets frozen to recover Sh45 billion, want the court to make a finding that they were not involved in any fraud as alleged in the case filed against them by the KDIC and the CBK.

They argue that KDIC has in a separate affidavit sworn by its assistant receiver manager Anne Muoki exonerated them from having played any role leading to the bank’s collapse.

“It is not true as alleged that we were involved in any fraud as alleged or at all. Annexed are various affidavits sworn by KDIC in various proceedings,” said the shareholders.

According to the shareholders, Ms Muoki had in a separate case said former Imperial Bank manager, Naeem Shah, was to blame for the collapse of the bank because of his fraudulent activities in partnership with the bank’s chief executive Abdulmalek Janmohammed, now deceased.

In that case, Mr Shah had alleged that directors of Imperial Bank and the CBK, are responsible for defrauding the bank but Ms Muoki filed a response stating that, “Mr Shah has not bothered to substantiate this claim nor does he provide any basis or evidence to support this claim.”
The case will be heard Wednesday.