Former governor challenges Charterhouse liquidator
MONEY: Former Kiambu governor William Kabogo has filed a suit challenging the appointment of Kenya Deposit Insurance Corporation (KDIC) to liquidate Charterhouse Bank.
The decision is allegedly based on the manager’s report, whereby Rose Detho is among those sued together with the Central Bank of Kenya, Charterhouse Bank and Kenya Deposit Insurance Corporation (KDIC).
“Take notice that the plaintiff, William Gitau Kabogo, a depositor of Charter House Bank and has through the firm BM Musyoki & Company Advocates instituted the above suit against the CBK, Rose Detho, KDIC and Charterhouse,” said BM Musyoki & Company Advocates.
KDIC challenged in suit
The suit challenges the decision to appoint KDIC to liquidate the bank. The suit claims that CBK and the manager violated certain provisions of the Banking Act.
Kabogo claims interest declared by the manager on all deposits held by the bank and an account of all deposits held by the bank since 2006 and restoration of all deposits to depositors.
“The plaintiff seeks relief including declarations of interest on deposits and restoration of depositors’ deposits in light of the fact that the CBK appointed Rose Detho as the manager when the said bank was still solvent with no liquidity issues,” said the advocates.
The notice called on other interested parties or depositors to join the suit if they so wish.
Justice Dorah Chepkwony in March allowed Kabogo to publish the case in two local dailies for any depositors of the lender, which was placed under statutory management in 2006 and later closed over claims of malpractices including tax evasion and money laundering, to join the case. In June 2021, KDIC after a 14-year moratorium began compensating depositors who held up to Sh500,000 in the failed lender.
