The Co-operative Bank of Kenya has come out to shed light on a contentious document shared on social media at a time when Kenyans are on high alert regarding controversial information targeting banks in the country.
On Tuesday, a damning document was unveiled attacking top Co-operative Bank managers accusing them of fraudulently acquiring shares and control over the lender.
Co-op Bank, however, affirmed that the document had been in circulation for eight years and was a forgery machinated by one of its former employees who was dismisssed in 2001.
"The Hate document was initially circulated way back in June 2008 by a former Managing Director of the Bank Mr Erastus Mureithi, who was retired early by the bank in year 2001 following huge losses," the bank's statement read in part.
The institution further expressed that there was no concern raised in regard to its shareholding structure, contrary to what has been purported in the document shared by controversial blogger Cyprian Nyakundi.
The Bank's Communications Manager, Mr Ngumo Kahiga, cited that Co-op Bank was in a court battle with Mr Mureithi, who was directed by the court to repay unpaid taxes amounting to over Sh25 Million.
"Mr. Mureithi is in court with the Bank on various matters that are in the public domain; on one case Mr. Mureithi has been ordered by court to refund the Bank various unpaid taxes to KRA now in excess of Ksh 25 Million," the Bank stated.
In regard to its shareholding structure, Co-op clarified: "Co-op Bank shareholding/directors interest in the Bank is in the public domain as a listed Bank. The Bank is 65% owned by Co-opholding Co-operative Society Limited".
"This was vide an Initial Public Offer (IPO) that was approved by all the necessary Government regulatory agencies that included the Ministry of Finance, the Central Bank of Kenya, the Nairobi Securities Exchange and the Capital Markets Authority".
In 2001, when Mr Mureithi was sent home, Co-op Bank was on the verge of collapse after suffering a Sh2.3 Billion loss. The Bank has since become the largest Co-operative Bank in Africa, with an asset base of over Sh340 Billion and a profit of over Sh15.38 Billion.
