THE Central Bank Governor Patrick Njoroge has said Imperial Bank loan scam could be as big as the country’s biggest fraudulent schemes of Goldenberg in the early 1990s and Angloleasing in the 2000s.
He is now appealing to anyone with material information that could help in the ongoing investigations into alleged Sh34 billion fraud to avail them to investigators.
“You all know there are forces out there. This is not small change by any means,” he told reporters on Thursday. “This is why we need to be extremely careful and if there is any material that any of you have or your readers, I’ll encourage them to come forward.”
US forensic auditor FTI Consulting and the Banking Fraud Investigations Department of the Kenya Police have since mid-October been investigating the alleged fraud.
Meanwhile, Njoroge has asked shareholders of collapsed Imperial Bank to deposit the Sh10 billion they said they have a fortnight ago, before opening discussions with them.
Governor Patrick Njoroge maintained the CBK has since November been open to “genuine” discussions that will lead to re-opening of the troubled mid-tier lender.
The bank’s shareholders on January 12 accused the CBK of frustrating the bank’s re-opening efforts, adding a proposal of Sh10 billion fresh capital injection was turned down.
“ I have said it before, I will say it now there’s an account here at Central Bank. If there’s Sh10 billion out there, put it in that account then we talk,” Njoroge said. “It is quite clear. Let’s be sincere. This is not a game. We are not in the business of re-opening the bank and closing it next month.”
The bank was put in receivership on October 13 after its board disclosed an alleged fraudulent loan scheme, estimated at Sh34 billion, between 2002 and last year under the watch of former deceased boss Abdulmalek Janmohamed.
On December 2, the CBK allowed depositors to access up to Sh1 million through KCB and Diamond Trust Bank, citing delay by shareholders to respond to the regulator’s re-opening plan.
By Wednesday, a total of 15,059 claims valued at Sh5.9 billion had been paid. Payments to about 900 claims out 1,177 that were questioned have however been stopped pending further due diligence, Njoroge said.
Most of the about 51 per cent of the 49,000 depositors who had less than Sh5,000 have however not lodged claims, he said.