Central Bank moves to recover Sh83 billion from Imperial Bank 'debtors'

Imperial Bank head office in Westlands. [PHOTO:BEVERLYNE MUSILI/STANDARD]

The Central Bank of Kenya wants to recover Sh82.9 billion from the elaborate web of individuals accused of sinking Imperial Bank.

Initially, the CBK through statutory manager, Kenya Depositors Insurance Corporation (KDIC) had indicated that Sh34 billion had gone missing when it filed the first suit against Imperial Bank Limited (IBL)’s seven owners. These included Imaran Ltd, Reynolds & Company Ltd, East Africa Motors Industries Ltd, Momentum Holdings Ltd, Rex Motors Ltd, Kenblest Ltd and Abdumal Investments Ltd.

According to a brief released by Patrick Njoroge, the Central Bank of Kenya Governor, on Thursday, W E Tilley, the fish company behind a web of underhand dealings within Imperial Bank is on the chopping board for Sh34 billion alongside others.

Others may be Jade Petroleum and Arda who according to Washington DC-based FTI Consulting apparently siphoned Sh20 billion alongside W E Tilley, between 2006 and 2015, as well as accrued interest.

Slow judicial process

“We have filed a case against W E Tilley and others for the recovery of a debt worth Sh34 billion, against Janco investments for the recovery of debt from the estate of the late Mr Abdulmaleck Janmohamed of Sh4 billion and a civil case against IBL shareholders and directors for the breach of fiduciary duties and failure of corporate governance for Sh44.9 billion,” the CBK Governor told the National Assembly’s Finance, Planning and Trade committee.

The governor, however, stated that they have concerns about the slow judicial process and want the Judiciary and Parliament to push for faster conclusion of the cases. Dr Njoroge also pointed out that his officials have come under increasing threats both openly and implied.

“Moving from evidence to courts and to convictions is something we have raised with the Chief Justice but we also look to you for support,” the CBK Governor told the Members of Parliament on Thursday. This is especially a challenge given that the perpetrators are keen on moving their assets to avoid seizure by the regulator.

According to court fillings, the shareholders received an anonymous note disclosing that on the day Mr Janmohamed died, Janco UK Limited, registered in the United Kingdom and in which he held 33 per cent stake, was dissolved.

CBK is also facing numerous counter suits as it seeks to seize assets and recover the money including Mr Janmohamed’s family, trust fund and Janco Investment Limited which he used to acquire a 13.5 per cent stake in the bank.

Proceeds of theft

Janco Investment lawyer Ahmednasir Abdullahi argued that the firm did not benefit from proceeds of the theft. The firm argues it is independent of its directors and shareholders as a body corporate and cannot be liable for their actions.

IBL directors have filed a suit to stop KDIC from destroying or moving properties of two of their companies Sandview and Upperview and force the receiver manager to return the firms’ documents.

For Dubai Bank, CBK is seeking Sh1.7 billion from two top creditors of the lender as well as the assets of its founder Hassan Zubeidi, who was charged over money-laundering claims alongside four others and a criminal case brought against him for failed settlement of Sh48 million with the Bank of Africa alongside six others.