A showdown looms in Imperial Bank after a customer moved to court contesting a decision temporarily stopping the transfer of assets and payment of money to those who deposited with the bank.
MS Josephine Awino Kogweno, a lawyer said that it was disappointing that the shareholders would block the one chance and or channel that myself and other depositors are assured of receiving our money.
She said that she had looked at the proposals filed in court by the imperial directors which she says make no mention of payments to depositors, “while they proceed to block any chance of the depositors being paid.”
“I have noticed from the replying affidavit by Kenya Deposit Insurance Corporation,” she said “that the shareholders intend to further defraud the public, by proposing to raise Sh5 Billion by way of a rights issue particularly taking into account that just before the bank was placed into receivership it had under sanction of the applicants under the management of its directors floated a bond for Sh2 billion.”
Ms Kogweno also said that the decision to appoint NIC bank to act as the Asset and Liabilities Consultant for Imperial Bank Limited in which capacity it will undertake on behalf of KDIC an assessment of the quality of IBL’s assets and liabilities, support the recovery of IBL’s loans, and provide guidance on other assets and on staffing was most likely informed by the fact that NIC Bank’s niche in the banking industry is with regards to asset financing and management, and are therefore highly competent and experienced in this regard.
At the time the bank was placed under receivership, Ms Kogweno had deposited at Imperial Bank Limited a sum of approximately Sh32 million being funds from various clients.
She said that during this period she has had difficulty running her Law Firm, and having to explain the plight of client money deposited with the bank.
The decision by Central Bank of Kenya to sell off the assets of Imperial Bank was overturned yesterday after disgruntled directors challenged the move.
The regulator had on Tuesday announced that it had entered an agreement with Kenya Deposits Insurance Corporation and NIC Bank to effect the payment of Sh1.5 million to depositors.
“Subject to a due deligence and contract review and negotiations, KDIC will dispose of and NIC will assume a portion of the remaining cerified deposits with certain assets and liabilities,” Central bank announced.
The bank directors unhappy will the move told the court that the action by the regulator ultimately culminates to the liquidation of the bank.
Lawyer Wadabwa for the directors said that unless the court intervenes that unreasonable decision will be at grave detriment and loss of his clients’ depositors, bondholders and employees.