CBK seeks improved Imperial Bank offer
SEE ALSO :Golf-Weekend clubs round up results“We intend to bring the deal to completion and there is no lack of courage on our part.” The Governor at the same time dismissed claims that ongoing investigation into Deputy Chief Justice Philomena Mwilu’s dealings with the collapsed bank were likely to impact the sale of its assets to KCB. Investigators at the Directorate of Criminal Investigations (DCI) have accused the Deputy CJ of using her position to illegally obtain Sh12 million from Imperial Bank between August and October 2013. She, however, claims the money was an unsecured loan. The case ropes in Imperial Bank following requests to substitute land parcels used as collateral, which was approved by Kenya Deposit Insurance Corporation (KDIC). “We cannot comment on the DCI case, everyone understands that it is a judicial process that is still ongoing,” said Njoroge.
SEE ALSO :Orders in ACK theft probe extendedThe Governor, however, said the KCB carve-out deal was not in any way linked to the case and would proceed as planned. He said the deal would be based on the same model as the Chase Bank resolution, where the State Bank of Mauritius was allowed to buy a 75 per cent stake in the struggling lender’s good books last August 17. The move saw a Sh26 billion spike in non-performing loans, half of which were acquired by the Indian Ocean island lender. CBK now says SBM will endeavour to resuscitate the bad books. Njoroge, however, declined to discuss the terms of the deal, as the finer details are still being worked on despite the fact the 70-day receivership extension ends in two weeks. Meet depositors This was the fourth time Imperial Bank receivership is being extended. In August last year, the High Court granted both parties one-year extension period to enable the regulator to seek a potential strategic investor.
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