In a new twist of events, Kenya Deposit Insurance Corporation (KDIC) has written to Imperial Bank’s non- executive directors and shareholders’ representatives informing them that its Sh45 billion asset freeze application in court will not rely on the forensic audit conducted by FTI Consulting.
Responding to the directors lawyer Andrew Wandabwa, KDIC through lawyer Philip Murgor now says its case is built around the evidence found in the bank’s annual reports and financial statements.
“The application dated 30th September 2016, has not in any way referred to an ‘Investigation Report’ by FTI Consulting, not placed reliance on any such report,” states Murgor in the KDIC response to the directors.
Wandabwa had requested KDIC to provide the directors with the forensic audit extensively attributed in the asset freeze suits.
In his request to KDIC on October 11th, Wandabwa says: “As we endeavour to draft and file our replying affidavit it has come to become apparent that the affidavit filed in support of your client’s notice of motion dated 30th September, 2016 heavily relies on investigation reports by FTI Consulting. In order to enable us respond substantively to the allegation levelled against our client it will be necessary for us to have site of all FTI Consulting investigations reports and documents relied upon in the said report as well as the terms of reference used to engage FTI Consulting in the investigation.”
The FTI forensic audit which could be the most expensive audit ever done in the history of Kenya’s investigation. has never been made public. The bank directors have filed an application that would compel KDIC to make public all FTI Consulting forensic audit reports touching on the bank post receivership.
While its full contents are still not fully known, a leaked report which is said to have been submitted on February 9th revealed the mysterious fish firm, W.E Tilley as the sole beneficiary of the bank’s fraud loot.
Bankers who have followed the matter closely now say that the fraud operated in a way that W.E Tilley was the main branch for the parallel bank now identified as Hanscomb Management. In its lifetime, Hanscomb Management transacted just over Sh76 billion in both inflows and outflows.
“This was a crime of opportunity that was done by manipulating the bank’s The IT system, ” said the Central Bank of Kenya (CBK) Governor Patrick Njoroge on May 28th at a Mindspeak event.
The shareholders have since officially linked 4 CBK employees to the fraud saying that they knew, facilitated and benefited from the fraud. The four are: Former CBK governor, Prof. Njuguna Ndung’u, colleagues from the Bank Supervision, Reuben Cheres and Ronald Geoffrey Langat and Peter Gatere of KDIC. Mr. Gatere was imperial Bank’s first receiver manager before he was quietly replace by Mahmoud Mohammed.
The shareholders have also previously intimated that the current CBK and KDIC leaders have no goodwill to save the bank hence their push for a liquidation of a bank they say could have been salvaged.
In addition, people familiar with intrigues of the bank’s receivership say that a senior Central Bank of Kenya official allegedly received a percentage of the fraud quantum from some people said to be close to former bank managing director, Abdulmalek Janmohammed, and who were also beneficiaries of the fraud.
The now famous Imperial Bank Lobby Group has played a big role in advancing the KDIC and CBK’s agenda of exonerating CBK from the blame, shifting the attention further away from W.E.Tilley, Jade, Adra and CBK and most recently, KDIC. This agenda has ensured that there is no revival solution for the bank to an extent the CBK recently announced an additional 6 months to the receivership period.
“Today’s IBL Protest to be Aired At 9.00pm on Citizen TV Kenya – “As Received,” read a post by the lobby group administrator on the night of the recent protest at the bank’s headquarters.