CBK, Charterhouse Bank seek deal over statutory manager’s term

Published on 27/02/2009

By Evelyn Kwamboka

Central Bank of Kenya (CBK) is negotiating with a bank under receivership on the issue of the statutory manager’s term at the institution.

CBK advocate Chacha Odera yesterday said the issue being discussed by CBK and Charterhouse Bank may lead to both parties recording a settlement consent that may end some of the cases pending in court.

“We may be in a position to record a consent. Should we agree, the consent would settle some of the cases,” he said.

He asked the Court to mention the case on March 17 since the issue on the Statutory Manager, Ms Rose Ndetho is coming up before the commercial court on March 5.

Ndetho was appointed when the Finance Minister placed the bank under statutory management on June 23, 2007, following claims in Parliament that it was involved in a money laundering and tax evasion scandal that cost the State Sh18 billion. CBK instructed her to establish the extent, if any, of the violations of the provisions of the Banking Act and regulations. She was required to investigate, assess and audit the operations of the institution and thereafter report her findings to CBK.

After her appointment, the bank closed and it moved with its depositors to court to challenge the decision.

Extended term

Her term at Charterhouse was later on extended, forcing the bank to file another case in court. Yesterday, Justice Joseph Nyamu said the matter before his court had been listed for mention, adding that Justice George Dulu was absent.

The two judges, along with Lady Justice Roselyne Wendoh were appointed by Chief Justice Evan Gicheru to hear Charterhouse matters.

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