Imperial Bank Limited directors have linked top Central Bank of Kenya (CBK) officials to the collapse of the lender.
Alnashir Popat, the chairperson of the bank that is under receivership, said that top CBK officials took part in the embezzlement of Sh34 Billion by the institution's former Managing Director Abdulmalek Janmohammed (deceased).
The allegations came up when Popat appeared before the Parliamentary Committee on Finance, Planning and Trade together with lawyers and financial consultants of the bank.
Financial Consultant Ashif Kassam stated that the CBK officers were involved in the fraud by manipulating the IT systems of Imperial Bank, that has been under receivership for seven months.
The manipulation was allegedly meant to enable Janmohammed and his colleagues hide the money within the bank, netting of liabilities and assets as well as automatically generating false reports that were not 'detected' by CBK.
"The bank reported a balance sheet of Sh52 Billion in its last reporting with a loan book of Sh40 billion. However, after receivership, it was discovered that the deposits totalled Sh85 Billion," said Kassam.
Popat further told the MPs that the officials who were involved in the alleged theft were now pushing for the liquidation of the bank to cover up their tracks.
“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 and senior employees of the bank ,” said Popat.
The directors claimed that the regulator's officers had become an obstacle in the revival of the bank.
CBK Governor Patrick Njoroge has, however, consistently accused Imperial Bank directors of refusing to co-operate with the regulator in the investigations and revival efforts.
