KACC now steps in to probe Charterhouse

October 8, 2010 12:00 am

, NAIROBI, Kenya, Oct 8 – The Kenya Anti Corruption Commission now says Charterhouse Bank should not be re-opened until investigations by the anti-graft agency into the institution\’s activities are completed.

In a statement on Friday, KACC Director Dr Patrick Lumumba said the commission had launched investigations in the bank\’s dealings in public interest.

"The Commission has the power to investigate any matter that in the commission\’s opinion raises suspicion that corruption or economic crime has occurred," said the KACC Director.

Charterhouse Bank was placed under statutory management in June 2006 by the then Finance Minister Amos Kimunya following a request by the Central Bank after it was suspected of carrying out suspicious transactions.

Dr Lumumba said the Commission had received "additional information from highly placed sources on the activities of Charterhouse Bank which it is currently examining with a view to establishing acts of corruption and economic crime and bringing the perpetrators to book."

He added that the new Constitution binds all persons and corporate entities to observe national values which include good governance, integrity, transparency and accountability.

"In the circumstance, the Commission shares the view that the bank ought not to be reopened until these investigations are completed," he asserted.

Read the statement.

The bank is currently the focus of a probe by the Parliamentary Committee on Finance, Planning and Trade.  The committee, chaired by Nambale MP Chris Okemo has so far summoned a number of senior government officials, including Finance Minister Uhuru Kenyatta.

Others who have appeared before the Committee include Kenya Revenue Authority Commissioner General Michael Waweru, Central Bank of Kenya (CBK) Governor Prof Njuguna Ndung\’u and the Charterhouse Bank Director Sanjay Shah.

On Thursday, Mr Kimunya also testified before the Okemo team, where he urged Parliament not to recommend the bank\’s re-opening as it would lead to panic withdrawals and subsequent collapse.


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