Imperial Bank’s head office in Westlands, Nairobi. PHOTO/COURTESY
By ABDULHAKIM SHERMAN
The collapsed Imperial Bank has received a new lease of life after the High Court extended its receivership by 90 days.
The bank shareholders, through their lawyer Andrew Wandabwa, had made the request saying an extension would allow more time for the stakeholders to dialogue on reviving the bank.
Justice George Odunga gave orders to extend IBL receivership by 90 days in a dispute involving the Central bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) and shareholders IBL over their assets.
KDIC lawyer Phillip Murgor, said the receiver will use this 90 days to engage the depositors about their payment.
At the same time, KDIC and CBK lawyers filed application to exclude KDIC and CBK board members from contempt of court case. Judge to hear the application on May 17th.
Imperial Bank Shareholders filed the contempt claim against CBK, the Governor and board of Directors as well as KDIC Board. The reason for the suit is that the respondents have refused to adhere to the Judicial Review Ruling made on November 4, 2016 by Justice Odunga.
Imperial Bank shareholders have filed documents in court in a bid to shade light on underhand dealings at the bank in an attempt to block KDIC and CBK from recovering Sh 45 billion from them over the collapse of the bank.
Shareholders of the collapsed bank say CBK employees participated in a fraud the regulator wants to investigate.
KDIC and CBK lodged had lodged a fresh suit against former directors and shareholders of Imperial Bank in a bid to recover Sh 45 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.
In papers filed in court, the Imperial Bank shareholders aim to demonstrate that CBK employees played a major role in covering up malpractices at the bank.
The evidence filed in court [download here] show witnesses statements, the application to list the witnesses –the counterclaim and defence suit which is in response to the Sh 45bn assets freeze.
The court documents show that 13 CBK employees were involved in mismanaging the bank’s post collapse process, had inappropriate relationship with the bank’s former Group Managing Director, that some of them took bribes and asked for personal favours, concealed data on the bank’s vital state of affairs and others took off-book loans.
The shareholders say 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 argue that they were not engaged in the running of the bank. They however, add that after the death of the bank’s former MD, Abdulmalek Janmohamed in September 2015, revelations emerged of fraudulent disbursement of vast amounts.
They aver that upon realising the fraud, an emergency board meeting was called where it was resolved that a forensic audit 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.
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