Imperial Bank owners say receiver cleared them of fraud

October 26, 2016
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According to the sworn affidavit by Muoki, Naeem Shah has admitted for the acts and omissions of other employees of the bank/FILE
According to the sworn affidavit by Muoki, Naeem Shah has admitted for the acts and omissions of other employees of the bank/FILE

, NAIROBI, Kenya, Oct 26 – Shareholders of the collapsed Imperial Bank Limited have filed documents seeking the court to make a finding that they were not involved in any fraud as alleged in the case filed against them by the Kenya Deposit Insurance Corporation and the Central Bank of Kenya.

The shareholders are of the view that KDIC‘s affidavit sworn by its assistant receiver manager Anne Murky removed them from blame of having any role in the collapse of the bank.

They claim Murky in a separate case revealed that fraud at Imperial Bank Limited was caused by senior employee of the bank Need Shah in partnership with the bank’s chief executive Abdulmalek Janmohammed, now deceased.

According to the sworn affidavit by Muoki, Naeem Shah has admitted for the acts and omissions of other employees of the bank.

“He has admitted that he was fully involved in the fraudulent operations on the account of W, E Telly Muthaiga limited and that he implemented instructions from former bank’s group managing director now deceased Abdul malek Jan Mohamed, Which had effect of unlawfully and fraudulently overdrawing Tilley’s accounts to the tune of billions of shillings,” she says.

The directors also argue that the initial report by FTI did not allude to fraud or negligence on the part of the directors.

Imperial Bank Limited, Kenya Deposit Insurance Corporation and Central Bank of Kenya moved to court two weeks ago seeking to recover Sh42billion from the directors.

The bank accused the directors of awarding themselves Sh2.7 billion in dividends despite knowing the bank’s true financial standing.

Imperial Bank sought orders to freeze the shares that the directors own in 42 companies linked to them.

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