Kenya Deposit Insurance Corporation (KDIC) and the Central Bank of Kenya (CBK) stalled their case Wednesday as their lawyer sought disqualification of counsel representing former directors and shareholders of Imperial Bank Ltd (IBL).
KDIC and CBK’s move caused the adjournment of the hearing of their application seeking to freeze the assets and shares held by the directors.
The application for disqualification of the law firms of Ahmednasir Abdullahi and Muriu Mungai filed by lawyer Philip Murgor on behalf of KDIC and CBK was strongly opposed by senior counsel Paul Muite.
Muite told the presiding judge Justice Francis Tuiyot that the application, if allowed to be heard, will impact negatively on their clients and is meant to delay the hearing of the main application filed by KDIC, CBK and Imperial Bank ( In Receivership).
He said the application is coming when parties have prepared for the hearing of the substantive application, which the presiding judge had given two days hearing.
“The application was filed this morning by the applicants who came to court under certificate of urgency and it appears they have abandoned the main notice of motion,” he said.
The urgency of the substantive application by KDIC and CBK, whose main prayer is the freezing of the assets of the former directors and shareholders, seems to have disappeared and parties are now being engaged in sideshows.
The applicants rely heavily in their applications on forensic investigations by FTI Consulting whose reports the defendants have asked to be produced for purposes of ascertaining the allegations of fraud has not been done.
The proceedings of the bank, KDIC and CBK against former directors and shareholders was to be heard yesterday and today.
On 30th September, 2016, CBK filed the application seeking adverse orders which orders were based on the finding by FTI report that has not been annexed to the application before court.
The directors argue that the initial report by FTI did not allude to fraud or negligence on their part.
According to one of the directors, the allegation by the bank, KDIC and CBK against them is not supported by way of evidence.
They have sought the court’s indulgence to consider their application and issue an order for the production of the FTI audit report.
The directors say that the purposes of the report is to enable the court look at the evidence and the allegations made against them by the bank, KIDC and CBK, which seek to seize their shares and assets.
The report will further assist the directors to interrogate the allegations and the purported findings which form the substratum of the suit by the bank, KDIC and CBK against them.
Justice Tuiyot said he will give directions today as to which application will be heard first.