FEATURED ARTICLE

CBK governor fights back in contempt of court case

Share
Central Bank of Kenya Governor Dr Patrick Njoroge. Central Bank has moved in to regulate interest rates charged by mobile lenders.
Share

The Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) have applied to set aside summons requiring their bosses to appear in court over alleged contempt of court. Through lawyer Philip Murgor, the two termed the notice dated 21st February , 2017, as unconstitutional.

CBK Governor Dr Patrick Njoroge and  receiver manager Mahmoud Mohammed had been summoned by Judge George Odunga on 21st  February to appear in court to show cause why contempt of court proceedings should not be commenced against them. The two officials claim that their rights to be presumed innocent had been violated. “The said notice requiring me to appear personally before the court violates my right to choose, and be represented by an advocate before the court,” said Mohamud in court documents.

Under the certificate of urgency filed yesterday before the high court, the two bodies want the court to stay the notice pending the hearing and determination of the application. The two bodies claim the act provides that the notice to show cause will only be issued where a state organ, government department, ministry or corporation is guilty of contempt of court.

“Requiring me to personally appear in court in terms of the said Notice to Show Cause, without having been heard is contrary to the said Section 30 and Article 50(I) and particularly to be presumed innocent until proven contrary is proved,” claims Mohamud.

Six months jail

When the matter came before the court, Imperial Bank Limited receivership process was extended for 90 days to allow the negotiation between CBK and Imperial Bank depositors. Also summoned were CBK board members Kamau Thugge, Attorney General Githu Muigai, Nasim Devji, Jeremy I. Ngunze and Samuel N. Kimani.

They had been given 30 days to present themselves before court. In the case, Imperial Bank shareholders want Njoroge and KDIC board members jailed for six months or be fined, for failing to furnish them with information of the bank’s status and possible revival plans.

In November last year, Justice George Odunga directed CBK and KDIC to engage sector players and depositors on how to revive the lender that has been under statutory management since October 2015.

[crp]

 

Written by
BT Reporter

editor [at] businesstoday.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
CBK headquarters in Nairobi
ECONOMYMARKETS

CBK Back to the Market Seeking KSh 60 Billion for Budget Support

CBK (Central Bank of Kenya) has come back in the market with...

CBK
BUSINESS

CBK Holds Lending Rate at 8.75% Despite Rising Inflation

The Central Bank of Kenya (CBK) has kept its benchmark lending rate...

CBK headquarters in Nairobi
BUSINESSNEWSSTOCKS

Central Bank of Kenya Raises KSh 34.4 Bn for Budget Spending in June

Central Bank of Kenya(CBK) received bids worth KSh 34.4 billion from the...

Cheque
BUSINESS

Verify-Cheque Launches Cloud System to Track and Recover Bounced Cheques

Verify-Cheque has launched a new cloud-based debt recovery platform aimed at helping...