Corporate News
Imperial Bank customers outside a branch in the city of Mombasa reading. PHOTO | FILE
By ALLAN OLINGO, Aolingo@ke.nationmedia.com
In Summary
- Move effectively opens up a lengthy legal battle as the bank seeks $340 million it had hoped to get through the disposal of attached properties.
Some senior managers being pursued over the collapse
of Imperial Bank have objected to the a move to attach their properties,
saying this was meant to give the shareholders false hopes of reopening
the bank.
This effectively opens up a lengthy legal battle as the bank
seeks $340 million it had hoped to get through the disposal of attached
properties.
Kenya’s Central Bank had indicated that Imperial
could be reopened after shareholders were presented with a proposal for
recovery and collateralisation of the irregular loans, as well as
injection of new capital and conversion of some of the large deposits
into equity.
In their affidavits, Imperial Bank’s managing
director Naeem Shah, the family of the deceased former chief executive
Abdulmalek Janmohammed, and James Kaburu, the current deputy chief
executive, have distanced themselves from the fraud, and asked the
court to throw out any attempts by Imperial Bank to attach their
properties in a bid to recover the said lost millions.
Through lawyer Ahmednassir Abdullahi, Mr Shah
denies making any confessions about his alleged role in helping Mr
Janmohammed embezzle $340 million of depositors’ funds.
Mr Shah argues that the fraud was perpetrated by
Imperial Bank directors in collusion with CBK officials as the former
controlled the affairs of the company, and not employees.
Read more on The EastAfrican
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