The collapsed Imperial Bank has come out to declare DCJ Philomena Mwilu obtained Ksh12 million without following proper procedures.
In a statement recorded at the Directorate of Criminal Investigations (DCI), the bank’s credit manager Peter Nzuki stated that Mwilu improperly borrowed the money in October 2013.
He noted that the cash was given to her in inappropriate circumstances contrary to bank-customer relations.
Nzuki noted that the disbursement was highly irregular and could not be described as a loan because no appraisal of her creditworthiness was undertaken and she did not file an application as required.
“The absence of a borrower’s request puts into doubt the lending contract,” read the statement in part.
According to the Star, the bank also failed to make her an offer specifying terms and conditions for the loan.
Suspicious still, Mwilu was advanced the money at zero interest.
“The loan was authorized by one Mehbooba Shamji contrary to the procedure laid out in the bank’s credit manual where such loans are to be authorized by the bank’s credit committee,” Nzuki mentioned.
One of the charges facing Mwilu is using her office to improperly obtain a benefit of Ksh12 million from the Imperial Bank.
In her defence, the DCJ alleged that the unsecured loan was credited to her as a customer in normal banking and contractual relationship.
