CBK boss, deputy sued over bank receivership

Bernice Mbugua @BerniceMuhindi

Central Bank of Kenya Governor Patrick Njoroge, his deputy Sheila Mbijiwe and Kenya Deposit Insurance Corporation (KDIC) chief executive Mohamud Mohammed have been sued by Imperial Bank (IBL) shareholders for allegedly mismanaging IBL receivership.

In a fresh suit at the commercial court, the shareholders want them held liable and compelled to lead recovery efforts and not liquidation.

Through lawyer Andrew Wandabwa, the shareholders argue that the new application does not in any way affect the ongoing transaction, rather seeks to ensure that the end game is not liquidation.

The shareholders, who have fought the bank’s liquidation since it went into receivership in October 2015, claim Njoroge and the CBK have refused to give them the relevant and pertinent financial information.

Kenblest Limited, Alnashir Popat, Anwar Hajee, Jinit Shah, Hanif Mohamed, Amiralji Somji, Mukesh Kumar Patel and Vishnu duties are the shareholders. According to them, the information Njoroge and CBK is withholding would enable them to put in place their proposal in line with the parallel process.

They accuse CBK of misconduct during the period of the bank’s receivership and omitting their statutory powers. “In allowing DTB access to the bank and the bank’s records and data, Njuguna, Mbijiwe and Mohamed aided to cover up DTB’s role, if any in handling the funds carried out on the bank,” the shareholders argued.

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