Companies

Flame Tree has Sh10m in collapsed Imperial Bank

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Imperial Bank depositors protest. FILE PHOTO | NMG

Manufacturing and trading company Flame Tree #ticker:FTGH has Sh10.1 million locked up at the collapsed Imperial Bank, the firm listed on the Nairobi Securities Exchange- has disclosed in its latest annual report.

“The bank balances of one subsidiary Flame Tree Africa Limited carried at Sh10.1 million at December 31, 2016 represent amounts on current account with Imperial Bank which was placed under receivership on October 31, 2015,” the company’s auditor PKF say in the report.

“This was considered as a key matter due to the subjectivity in assessing the recoverability of these balances.”

Imperial Bank went under with billions of depositors’ funds including companies like the Kenya Power #ticker:KPLC which has Sh322.4 million held by the lender.

The bank was placed under statutory management after a multi-billion shilling fraud was discovered.  The Central Bank intends to liquidate the lender, a move that would see creditors and depositors receive compensation.

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