Court says cannot freeze Imperial Bank directors’ assets

October 17, 2016 5:22 pm
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The judge directed that the application filed by the bank, Kenya Deposit Insurance Corporation and Central Bank be heard first/FILE
The judge directed that the application filed by the bank, Kenya Deposit Insurance Corporation and Central Bank be heard first/FILE

, NAIROBI, Kenya, Oct 17 – The High Court has for the second time declined to issue orders freezing shares and assets belonging to former directors of Imperial Bank, which is under receivership.

Justice Francis Tuiyott said that the court needs to hear all parties in the suit before making any orders regarding the properties in dispute.

Overview
  • Justice Francis Tuiyott said that the court needs to hear all parties in the suit before making any orders regarding the properties in dispute.
  • The judge directed that the application filed by the bank, Kenya Deposit Insurance Corporation and Central Bank be heard first.
  • The court gave the directions following the filing of several applications by directors seeking to have the suit by CBK struck out.

The judge directed that the application filed by the bank, Kenya Deposit Insurance Corporation and Central Bank be heard first.

The court gave the directions following the filing of several applications by directors seeking to have the suit by CBK struck out.

The directors argue that the suit against them can’t stand because a report that allegedly implicates them has not been annexed in the court documents.

The directors through their lawyer Terry Mwango, told the court that the Kenya Deposit Insurance Corporation appointed the FTI Consulting firm to carry out an audit and in-depth investigation to the allegations of fraud and the said report is not exhibited.

CBK filed the application seeking adverse orders against the directors, which orders were based on the finding of the FTI report that has not been annexed to the application before court.

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

Mwango says that allegation by the bank, CBK and Kenya Deposit Insurance Corporation against the directors is not supported by way of evidence.

The directors seek the court’s indulgence to consider their application and issue the order for the production of the report by the FTI audit report.

They say that the purpose of the report is to enable the court look at the evidence and allegations made against them which seeks to seize their shares and assets.

The report will further assist the directors to interrogate the allegations and the purported findings which form the substratum of the suit by the bank, Kenya Deposit Insurance Corporation and CBK against them.

The suit will now be heard on October 26 and 27, 2016.

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