CBK workers culpable in Imperial Bank saga to face law - Capital Business
Connect with us

Hi, what are you looking for?

According to CBK Governor Patrick Njoroge, the regulator is only awaiting outcome of the forensic audit started late last year by global firm, FTI Consulting, to know the way forward/CFM BUSINESS

Kenya

CBK workers culpable in Imperial Bank saga to face law

According to CBK Governor Patrick Njoroge, the regulator is only awaiting outcome of the forensic audit started late last year by global firm, FTI Consulting, to know the way forward/CFM BUSINESS

According to CBK Governor Patrick Njoroge, the regulator is only awaiting outcome of the forensic audit started late last year by global firm, FTI Consulting, to know the way forward/CFM BUSINESS

NAIROBI, Kenya, Feb 16 – Any Central Bank of Kenya (CBK) employee found guilty of involvement in the Imperial Bank Limited saga will face disciplinary action according to the law.

According to CBK Governor Patrick Njoroge, the regulator is only awaiting outcome of the forensic audit started late last year by global firm, FTI Consulting, to know the way forward.

Njoroge who appeared before the Parliamentary Committee on Finance however said the audit must confirm the involvement of any individual to illegal transactions before any disciplinary action is taken.

“There is actually an ongoing forensic audit and without interference let them find out what is there. Let them pick specific transactions; and when all these come forward and there is evidence, we will treat everyone with fairness, without fear and without favour. It wouldn’t just be one email but a list of transactions… solid evidence,” Njoroge assured the legislators.

He was answering a query by Teso South MP Mary Emaase on claims that some Central Bank of Kenya officers colluded with Imperial Bank senior managers to bring down the institution.

Apart from the culprits involved, the audit is also looking into the bank’s ‘filtered’ books, processes and governance system and help explain the said unsafe and unsound business transactions that led to the closure of the bank in October last year.

FTI is working with Kenya Depositors Insurance Company (KDIC) officials who took over management of the bank as receiver.

As of Friday last week, Governor Njoroge says Sh6.4 billion of 16,955 claims had been paid out of 19,106 claims received. At the moment the bank has at least Sh87bilion in deposits.

“This matter has shown that this is an intricate web we have out there. You pull one element and several other elements come along. And this is why it is better to be sure where everything else is, like how the scheme was being done and understand how we will deal with it,” he said.

Going forward, the Central Bank also plans to expose inappropriate actions by banks and even publish the disciplinary actions taken against them.

“Those behaving inappropriately better clean up your mess. We usually impose fines on banks but we never publish, but sooner or later we will expose the enforced actions,” he warned.

Advertisement. Scroll to continue reading.

The regulator has also kicked off a staff training program aimed at enhancing banks’ supervision as well as deal with any negative operation culture.

Advertisement

More on Capital Business