BY SAM ALFAN.
Central Bank of Kenya Boss Dr. Patrick Njoroge has been summoned to appear in court in person and show cause why contempt of court proceedings should not be commenced against him.
The thirty day Notice summons have also been issued to Kenya Deposits Insurance Corporation Mahmoud Mohammed and CBK board members DR. Kamau Thenge, Ag Githu Muigai, Nasim Devji , Jeremy I. Nguze and Samuel N. Kimani.
In the case Imperial Bank shareholders want CBK governor Patrick Njoroge and Kenya Deposit Insurance Corporation board members committed to jail for a period of six months or be fined accordingly for failing to furnish them with information of the Imperial Bank status and discuss possible revival plans with all stakeholders.
In November last year Justice Odunga directed CBK and KDIC to engage the shareholders and depositors with a view to reviving the lender that has remained under statutory management since October 2015.
Imperial Bank Depositors moved to court seeking Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) board members punished for disobeying court orders compelling them to provide shareholders of the collapsed Imperial Bank with a status report for its possible revival.
The aggrieved shareholders have petitioned the Commercial Court to issue the statutory 30-day notice to the key members of the two institutions and summon to appear personally to show cause why contempt proceedings should not be commenced against them.
The shareholders claim that the CBK and KDIC have ignored a court order issued last year compelling them to share details of Imperial Bank’s status and discuss possible revival plans with all stakeholders.
Imperial’s shareholders have also questioned the continued payment of some depositors through NIC Bank in exchange for assets, arguing that the move amounts to premature liquidation which Justice George Odunga had barred.
The judge, in his November ruling, ordered the CBK and the KDIC to engage shareholders and depositors with a view to reviving the lender that has remained under statutory management since October 2015.
The bank was placed seized by the regulator after the discovery of a Sh44.9 billion embezzlement scheme allegedly spearheaded by deceased managing director Abdulmalek Janmohammed.
The KDIC has filed two suits against the shareholders seeking to recover the sum, arguing that as owners they participated in the siphoning of depositors’ savings.
It has also filed another suit against the family of Mr Janmohammed, a network of businessmen and companies used to channel depositors’ funds out of the bank. The shareholders now want CBK governor Patrick Njoroge, the regulator’s board of directors and their KDIC counterparts jailed.
“It is noteworthy that the contemplated transfer process to NIC Bank is what the court had barred.
This honourable court should issue a 30- day notice to CBK board of directors and KDIC board of directors to personally attend court to show why contempt of court proceedings should not be commenced against them,” the shareholders say.
Mention 24 of March for further directions.
