November 16, 2018

CBK Governor summoned over contempt of court

The High Court has ordered Central Bank Governor Patrick Njoroge and directors to attend a court hearing in 30 days and explain why they should not be jailed for defying a court order against taking steps to liquidate Imperial Bank.

Justice George Odunga issued the order after the Governor and directors were accused by six shareholders of the collapsed Imperial Bank of defying a court’s directive requiring them to reveal information relating to the bank’s receivership.

The shareholders indicate that the move amounts to premature liquidation, which the court had barred.

“In refusing to respond to the applicants or engaging them while at the same time continuing with their engagement with NIC Bank, (Imperial Bank) will inevitably go into liquidation come end of the statutory management on April 14, 2017,” said their lawyer Andrew Wandabwa in court documents.

Also summoned was Kenya Deposits Insurance Corporation (KDIC) boss Mahmoud Mohammed and CBK board members Kamau Thugge, Attorney General Githu Muigai, Nasim Devji, Jeremy I. Ngunze and Samuel N. Kimani.

The case will be heard on March 24, 2016.

The move comes after Judge Odunga last month issued a notice requiring the CBK and KDIC to continuously engage Imperial Bank shareholders.

In October last year, the CBK extended the appointment of KDIC as receiver of the bank for a further six months.

“The appointment was carried out in the interest of the bank’s depositors, creditors and members of the public, since the appointment, progress has been made towards a resolution of the bank’s receivership with the objective of safeguarding the interest of Depositors creditors and the wider public interest,” CBK stated.

Imperial Bank was placed under receivership by CBK after the discovery of a Sh44.9 billion embezzlement scheme allegedly spearheaded by deceased managing director Abdulmalek Janmohammed.

Related posts