Reports on bad loans and mismanagement are false, NBK chairman says

Standing, from left: Acting NSSF Managing Trustee Amuriko, Joseph Kering, Munir Ahmed (CEO), and Habil Waswani (company secretary). Seated: Beatrice Gathira (National Treasury), Mohammed Hassan (chairman) and Cotu Secretary-General Francis Atwoli at a press conference on June 23, 2015. PHOTO | EDWIN OKOTH |  NATION MEDIA GROUP

In Summary

• The board also outlined the allegations around loan disbursements, staff exits and audit related queries saying their internal procedures are strong enough to ensure the banks runs smoothly.
• Chief executive Munir Ahmed said the allegations also mean that the regulator Central Bank is sleeping on the job which he says is not the case.

By EDWIN OKOTH
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The National Bank of Kenya (NBK) board has defended the bank’s chief executive against alleged mismanagement and questionable transactions.

At a press briefing held Tuesday at the bank's Harambee Avenue head offices, six board members, led by chairman Mohammed Hassan, said the allegations about staff mistreatment, questionable money transfers and conflict of interest were malicious, untrue and unfortunate.

“Anyone making these allegations is malicious and as a bank we take matters of character very seriously and will consider appropriate legal action. We are running a change process and this is expected,” Mr Hassan said.

READ: Deep rot could bring down National Bank

The board also outlined the allegations around loan disbursements, staff exits and audit-related queries, saying their internal procedures are strong enough to ensure the bank runs smoothly.

The board members, who included COTU Secretary General Francis Atwoli, also said the level of staff exits at the bank is normal and lower than staff exits at any other banks.

“If, for example, someone finds … better pay, then it is normal for them to leave just like in any other organisations, it is normal and the staff here are well compensated when they leave. If there was anyone who was offended, we should have heard a case in the Industrial Court,” Mr Atwoli said.

National Bank has been in the spotlight over staff exits under its five-year transformation strategy meant to elevate the lender to a top-tier bank by 2017.

The staff members have allegedly been victimised on the basis of performance management to determine those to be released and those to be retained.

NBK Chief Executive Munir Ahmed also defended the sale of its assets to raise capital, saying the bank stands to make more income with financial rather than physical assets.