Details have emerged showing how Imperial Bank shareholders tried to cover up the embezzlement of Sh34 Billion that led to the collapse of the lender.
Documents filed in court by the lender's receiver - Kenya Deposit Insurance Corporation (KDIC) - shows that the owners of the collapsed bank tried to offer auditors a Sh500 Million low-interest loan.
The loan was to be paid within 7-10 years at the interest rate of 19 per cent.
According to KDIC, the loan was meant to shift attention away from the Sh34 Billion corruption scheme.
The receiver further states that the shareholders offered PKF Kenya auditors the loan through East Africa Property Holdings which is a real estate company.
In the court documents, it is alleged that Imperial Bank directors were well aware of the conflict of interest presented by the loan to its auditors, but went ahead to approve the loan.
The details of the credit were revealed in an ongoing audit by FTI Consulting.
The KDIC made the claims in a suit filed by two companies owned by former Imperial Bank group managing director Abdulmalek Mr Janmohammed (deceased) and some Imperial Bank directors including Mr Popat — Sandview Properties and Upperview Properties — against the Imperial Bank and its receivers.
