National Bank CEO, 5 others suspended over grand theft
29 March 2016, 21:17
Nairobi - The National Bank of Kenya board has sent its
chief executive Munir Ahmed and five top managers on forced leave to
pave the way for a detailed audit.
The Star reports that Ahmed, who has served as chief executive for the last four years, will
step aside pending an internal audit, hinting at corporate governance
issues within the lender.
The bank did not disclose the names of the other five managers.
NBK, majority owned by the government, has appointed Wilfred Musau, who joined it six months ago, in an acting capacity.
six managers will immediately proceed on leave but will be expected to
comply and make key submissions to the internal audit process,” said the
board in a statement.
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The Daily Nation further reports that the suspension comes at a time the bank is battling claims of mismanagement
and a loose credit policy resulting in the ballooning of bad loans,
affecting its financial standing.
bank has two days to release its full-year financials as per the
Central Bank regulations, which require banks to publish their results
by the end of March.
NBK posted an after-tax profit of Sh2.2 billion in the nine months to September.
aforementioned actions by the Board are an unequivocal demonstration of
our commitment to strict adherence to corporate governance tenets and
the various Central Bank of Kenya (CBK) guidelines,” said the bank’s
chairman Mohamed Hassan.