Did Co-Operative Bank Directors Illegally Acquire A Huge Chunk Of The Bank’s Shares??

Days after chase bank was put on receivership and under a new management, a document targeting one of the largest banks in Africa, Cooperative bank of Kenya, is making rounds on social media with allegations that the banks top directors have illegally obtained shares and control over the lender.

This follows a story by one Cyprian Nyakundi, a well-known blogger on how the Ethics and Anti Corruption Commission boss Halakhe Waqo was bribed by the bank to kill an investigation brought to their attention by Kenya Small Coffee Growers Association (KESCOGA)

This comes at a time when bank fraud is a serious issue in the country. WHY? because last month National Bank top officials were suspended for alleged malpractices, while Imperial Bank still under receivership.

“The Hate document was initially circulated way back in June 2008 by a former Managing Director of the Bank Mr. Erastus Mureithi, who was retired early by the bank in year 2001 following huge losses. He is currently in court with the Bank on various matters that are in the public domain” noted Ngumo Kahiga, Co-Op’s head of marketing and Communication.

cop bank statement

Co-operative bank statement in reaction to the document they term as Malicious CREDIT: http://co-opbankke.com/

In relation to the Banks shareholding, Kahiga clarified that Co-op Bank directors’ interest in the Bank is in the public domain as a listed Bank whereby 65% of it is owned by Co-opholding Co-operative Society Limited, a strategic vehicle on behalf of the over 10 million members of  co-operative movement in Kenya.The Bank with countrywide ownership is indeed the face of Kenya.

Here is the link to the Banks official statement on the document they believe its malicious. >>> http://goo.gl/72Dkze

Despite this, Kenyans On twitter famously Known as #KOT could not hold their fingers on this unfolding story and had the following to say using the hashtag #CoopBankPocketsEACC

 

What do you think should be done to end Bank Fraud In Kenya?

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About the Author

Muhatia
Muhatia is the Managing Editor of Biz News Media Reach him via editor@biznews.co.ke