A section of Imperial Bank shareholders have accused unnamed Central Bank officials of being part of a cover-up involving fraudulent transactions at the bank.
In court papers filed on Friday, the shareholders who want to be enjoined in the case where Imperial Bank has sued 20 companies and individuals that benefitted from the transactions, have accused the receiver manager of leaving out other beneficiaries in the suit.
The shareholders say they are apprehensive about the prosecution of the case because “officers of the Central Bank, the plaintiff statutory manager’s appointing authority may have been involved in cover up of transactions some of which are the subject of this suit.”
The shareholders claim in court documents that despite holding several meetings with the CBK and the receiver manager appointed on October 13 to discuss the bank’s restructuring, the banking regulator threw Imperial Bank’s revival plans into a limbo citing shareholders’ inaction.
While announcing payouts to depositors on December 2, the CBK claimed the shareholders did not provide adequate assurances to implement a proposal that would enable the prompt reopening of the bank and resumption of normal activities.
The shareholders, who said they are still willing to inject Sh10 billion as well as sell some assets to recapitalise the bank, accused the CBK of making unreasonable demands which scuttled the restructuring plans.
According to a letter presented in court by the shareholders’ lawyers Wandabwa Advocates, the CBK in one instance gave the owners of the bank only 48 hours to inject over Sh10 billion as part of the conditions for reopening.