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Imperial Bank owners offered auditors Sh500 million loans
The loan was offered at 19 per cent to be repaid in 7-10 years. PHOTO | FILE
Imperial Bank shareholders induced its auditors with a $5 million (Sh500 million) low-interest loan to turn their attention away from a Sh34 billion embezzlement scheme at the collapsed lender, the Kenya Deposit Insurance Corporation has claimed in court filings. The KDIC, Imperial Bank’s receiver manager, says in documents filed at the Milimani High Court that top managers at audit firm PKF Kenya were lent Sh500 million through a real estate company they owned to rope them into the multibillion-shilling scandal.
Mohamud Ahmed of the KDIC holds that the PKF partners received the loan through East Africa Property Holdings and were to repay the amount in 7-10 years at an interest rate of 19 per cent per year.
