Saturday, April 09, 2016

Kenya Police Chief Orders Arrest Of 'Rogue Bankers'

Chase is a mid-sized bank with a mixture of clients Reuters

Kenya’s police chief has ordered the arrest of eight bankers for “unethical conduct”.

Media report continues:

A statement from the inspector general of police listed six bankers from the National Bank of Kenya and two from Chase, the bank which was placed under receivership on Thursday.

Joseph Boinnet also said a man had been arrested for “peddling falsehoods” on social media about the banking sector.

The Central Bank of Kenya (CBK) said panic withdrawals on Wednesday, caused by "inaccurate" rumours on social media, had led to a run on Chase Bank.

The move follows a promise by the CBK governor to crack down on rogue bankers.

"We cannot tolerate rogue bankers, those who in effect steal from depositors," Reuters news agency quotes Patrick Njoroge as saying. 

On Wednesday, Chase dismissed its chairman and group managing director after the release of two conflicting financial statements.

One of them had downplayed the bank's internal loans. An audit later showed the bank had loaned its directors US$80m, and its bad debts had skyrocketed to US$100m.

On 29 March, National Bank placed its chief executive officer and five top managers on leave to pave way for an internal audit, Reuters reports.
Here's a copy of the police chief's statement, listing the names of the bankers:

Kenya police
Kenya police


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