Company denies link to stolen Imperial bank cash

One of private firms being pursued for the fall of Imperial Bank has denied claims that its assets were acquired from part of the loot stolen by the founder of Imperial Bank, the late Abdulmalek Janmohamed.

Janco Investments Limited, which owns 13.5 per cent stake at the troubled bank insists that its assets have no links to the Sh38 billion the bank lost. It made the denial through papers filed at the court by lawyer Ahmednassir Abdullahi.

In its papers filed before High Court judge Olga Sewe, the firm claimed the allegations raised before the court by the lender’s directors were mere “speculations and are not founded on truth”.

Cash withdrawals

“It’s startling to see that the entire claim of the plaintiff against the first defendant is solely based on self-generated beliefs and rumours,” argued the defendant in the filed documents.

“The first defendant (Janco) avers that its assets are wholly obtained from proceeds of its legitimate business endeavours and undertaking and the plaintiff’s (Imperial Bank) claims are completely devoid of any factual basis. The same is baseless conjecture, vile speculation and disrespectful slander,” claimed the defendant.

On opposing side, the bank’s directors maintained that the former director and his associates used 12 companies to open accounts at Imperial Bank into which they deposited massive amounts of cash that was then moved out of the bank before the accounts were closed immediately after.

The court had been told that the deceased was a director at Janco, but the company holds that it cannot be crucified for personal actions or omissions of its directors.

“The first defendant is a body corporate, with a distinct and separate legal personality from its directors and shareholders and thus it cannot be held liable for their actions.” read in part the court papers.

The firm also refuted claims that its top managers were aware that Janmohamed was channeling the dirty money he siphoned from the bank through Janco.

Janco claimed that the directors were ‘on fishing expedition’ in a bid to raise hopes of the bank’s shareholders that they were recovering money.

“The first defendant avers that it acquired all its properties lawfully and the same are protected by the constitution and other laws of the land. The plea by the plaintiff to the take by force or unlawfully is untenable and scandalous,” Janco claimed.

Central Bank of Kenya appointed Kenya Deposit Insurance Corporation to assume management and control of Imperial Bank.

The regulator said the action was prompted by unsafe business conditions of the bank and that the appointment of KDIC has been carried out in the interest of its depositors, creditors and members of the public. The case will be heard on December 1.