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CBK governor fights back in contempt of court case

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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]

 

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BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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