SHAREHOLDERS of collapsed Imperial Bank are seeking court orders to stop further payouts to depositors in order to protect the lender's assets and
facilitaterecovery.
In an application filed yesterday, the shareholders further accuse some Central Bank of Kenya officials of violating statutory obligations by disposing some of its assets without their involvement.
The shareholders want to stop further payouts to depositors to protect their key assets which they argue are the large deposits.
The Bank has named CBK, Kenya Depositors Insurance Corporation, Kenya Commercial Bank ) and Diamond Trust Bank
as respondents in the case.
The application has sought to stop further transferring, or disposing assets of the bank and for the receiver to allow the shareholders to access information, which will help in the recovery plans.
An affidavit by Anwar Hajee accuses CBK of failing to engage them in constructive dialogue, towards the bank's recovery.
The bank's large depositors total 5,700 with about Sh88 billion. Under the current payout plan, they are to get Sh1 million of their money through Diamond Trust Bank and Kenya Commercial Bank while the small depositors, 88.6 per cent of its client base will get back their cash in full.
KDIC said the large depositors would then be allowed to access more of their money by March.
However shareholders have previously argued that making full payouts will leave the bank without any clients, which will derail any recovery plans.
Last month, the shareholders accused Central Bank of not cooperating with them despite their goodwill towards a workable recovery plan. They accused the regulator of giving their competitors KCB and DTB their customers through the decision to disburse Sh8 billion through the two lenders.
Shareholders want the court to allow them access to information obtained so far from the bank to enable them plan better for its recovery.
They also want the CBK compelled to formally dialogue with them since previous meetings with the regulator have not been constructive.
Imperial Bank was placed under receivership on October 13 after some of its shareholders reported unsound banking malpractices to the CBK.
In the suit the shareholders claim CBK
breached their constitutional right and treated them unfairly and want the three respondents to take up the cost of the application.
The investors of the bank are targeting at least Sh2.5 billion from the estate of the late managing director Abdulmalek Janmohamed, the alleged mastermind of the fraud in which the bank lost Sh34 billion through illegal and unsecured loans.