No Disposing Off of Assets; Court Orders Former Imperial Bank Directors

Former Imperial Bank directors were yesterday barred by the High Court from disposing off their assets before assets before a suit filed by the Central Bank of Kenya (CBK) to recover lost monies is concluded. This comes after CBK filed a suit seeking to recover Sh45 billion alleged to have been stolen from the institution through fraud is determined.

The presiding judge, Justice Francis Tuiyot warned the directors from interfering with the assets, adding that the assets should remain in the hands of the directors during the dependency of the case.

The judge further noted that the court had made the remarks on fears raised by CBK and 132 depositors who said some shares owned by the directors in companies cited in the suit were being transferred inconsistently, thus with the assurance made in court, they will have themselves to blame.

“As we speak, the apprehension that the defendants may act inappropriately is real. The assets to be frozen are a total of 42 companies in which the directors are shareholders… it has come to our knowledge that some assets are being disposed of,” said lawyer Philip Murgor who was representing CBK.

Murgor added that it would be impossible for CBK to recover the lost Sh45 billion in the event of an ownership change in the targeted assets, thus asking the court to rule that there should be no transfers, sale or change of ownership up until the final verdict of the court is made.

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On Wednesday, the directors opposed an application seeking to enjoin 132 depositors in the suit but lawyers submitted that the money to be recovered belonged to the depositors.

Murgor argued that the basic principle of fairness and obedience to the rule of natural justice dictates that they be party to these proceedings.

“We seek an order that can protect the assets so that they can remain in their hands, but disable them from disposing the assets, and that their value is not diminished,” said Murgor

Imperial Bank of Kenya, Kenya Deposit Insurance Corporation and Central Bank of Kenya lodged the new case claiming that the directors slept on the job and allowed fraud to reign supreme sending the bank into liquidity.