CBK boss quizzed over banks’ ‘crafty’ officers

A file photo of Central Bank of Kenya governor Patrick Njoroge. /HEZRON NJOROGE
A file photo of Central Bank of Kenya governor Patrick Njoroge. /HEZRON NJOROGE

MPs have questioned why Central

Bank governor Patrick Njoroge has not

ensured his officers linked to the collapse

of three banks are prosecuted.

Njoroge, who appeared before the

National Assembly Finance Committee

was at pains to convince the MPs

why no CBK officer implicated in the

collapse of Chase, Imperial and Dubai

banks has not been sacked or prosecuted,

almost a year since he assumed

office.

The committee chaired by Ainamoi

MP Benjamin Langat raised concern

that the officers may be interfering

with ongoing forensic audit commissioned

by the CBK, to unearth culprits

who fleeced depositors.

“We thought

in this investigation you could start

with your own house. Keeping the

officers could be interfering with the

investigations,” Langat said.

Nominated MP Johnson Sakaja demanded

that Njoroge should confirm whether

the CBK has ever conducted a

“serious investigation” into its officers.

“I am not saying that CBK employees

were not involved in the collapse

of the banks, but as at now we have no

evidence to sack any officer,” Njoroge

said. “The officers are not going anywhere.

They are going to be in this

country and even if they retire we will

pursue them for prosecution when

there is enough evidence.”

Njoroge was also put to task to explain

why he commissioned an audit

on Chase Bank while it was under receivership.

Langat poked holes into the

audit report on Chase Bank presented

to his committee mid this year, alleging

it had conflict of interest.

“At this point I cannot fully and

satisfactorily answer the question

why I appointed the auditor. Considering

conflict of interest, I thought

there would be firewalls in auditing,”

Njoroge said.

He appeared before the

committee to share findings of the

forensic audit report on the affected

banks.

The CBK governor, however, did not

share the findings with the committee

on grounds it is difficult to come up

with one report for the three banks.

Chase Bank will be pulled out of receivership

next year, Njoroge said.

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