EACC Investigates CBK Officials in Ksh80 Billion Imperial Bank Fraud Case

  • The Ethics and Anti-Corruption Commission (EACC) launched investigations against former and current Central Bank of Kenya (CBK) officials suspected to have been involved in a Ksh80 Billion fraud case.

    The officials are accused of having been behind the accounting impropriety saga that led to the collapse of Imperial Bank.

    EACC deputy chief executive Michael Mubea on Thursday explained that the anti-corruption body would zero in on those found to have been culpable for the fraud.

    "We are probing the officials and hope to conclude the process soon," he stated.

    [caption caption="File image of the Central Bank of Kenya (CBK)"][/caption]s

    Mubea's statement came days after the Director of Public Prosecutions (DPP) Noordin Haji revealed that CBK officials had been indicted in the matter.

    "All the banks that have had problems with depositors’ money have had their senior management, and in some cases directors, charged in court.

    "With specific regard to Imperial Bank, that is, Criminal Case number 478/2016, senior managers have been charged together with the directors for loss of Sh29 Billion.

    "We are not only pursuing the directors and the management but also central bank officials, who allowed this to happen despite numerous inspections," DPP Haji stated.

    CBK Governor Patrick Njoroge has welcomed the action against his officials stating that those found to have assisted any improper practices will be prosecuted according to the law.

    In June 2016, the Imperial Bank chairman accused the CBK officials of being complacent in handling transactions.

    "It is plainly obvious that such complicit officers cannot be entrusted with the investigations which, if properly conducted, would unearth and expose their fraudulent dealings in cahoots with former group managing director Abdulmalek Janmohamed and senior employees of the bank," Imperial Bank chairman Alnashir Popat declared at the time.

    [caption caption="File image of an Imperial Bank branch in Kenya"][/caption]