CBK moves to recover Sh45b from Imperial Bank directors, shareholders
The Central Bank of Kenya (CBK) is seeking to recover Sh45 billion from shareholders and directors of Imperial Bank.
This is in connection with the massive Sh28 billion fraud that was discovered last October that led to the eventual closure of the bank.
The central bank and the Kenya Deposit Insurance Corporation (KDIC) have been unable to recover any of the assets of the shareholders and directors.
In a case filed at the Mililani law court, Commercial division, lawyer Phillip Murgor argues that the forensic investigations conducted by US based FTI Consulting over the financial irregularities at the bank, has revealed multiple breaches of financial duty on the part of the defendants leading to massive, complex and long running and well-orchestrated fraud at the Imperial Bank Limited that resulted into loss of the bank’s assets and depositors funds.
“The defendants are liable for all loss and damage caused by their negligence, gross negligence, breach of fiduciary duty,” reads the petition.
CBK and KDIC are seeking orders to seize all known property and assets of the shareholders and directors in Kenya as well as 44 companies linked to them.
The banking regulator also wants to be grated tracing orders to recover assets that may be stashed outside the country.
The Central Bank Governor Dr Patrick Njorge last week said the regulator had enough evidence to link the director and shareholders with fraud, negligence and breach of trust between the bank and its customers.
“We’ve reached a rather delicate point in the investigation and prosecution. At the end of the day the idea here is to provide evidence that will lead to a recovery of the resources for depositors and hold the responsible parties accountable,” Dr Njoroge said.
Those named as defendants include Alanashir Popat , Anwar Hajee, Jinit Shah, Hanif Mohammed Amiralisomji, Mkeshi Kumar Patel , Vishnu Dhutia , Estate of Abdulmalek JanMohamed, Erick Bengi Gitonga, Omurembe Iyadi , Christopher Angelo Diaz, Imaran Real Estate Limited, Janco Investment Limited, Reynolds and Company Limited, East African Motor Industries(sales and services Limited).
Momentum Holdings Limited and AbdulMal Investment Limited, Kenblest Limited and Rex Motors Limited.
The move is bound to rub the shareholders off the wrong way after months of repeatedly claiming the banking regulator was witch-hunting.
The shareholders and directors argue they are the ones that blew the whistle on the massive fraud said to have been orchestrated by former long serving Managing Director Abdulamek Janmohammed.
Preliminary findings from the FTI forensic audit also implicate Former senior managers, Naeem Shah and James Kaburu, as key players in the multi-billion shilling fraud scheme.
KDIC had previously filed a suit to recover Sh34 billion from Mr Shah, Mr Kaburu and the family of the late Janmohammed, who it claims were all beneficiaries of the mega fraud scheme.
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