NBK management fails to honor Parliament summons

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NBK
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National Bank of Kenya’s (NBK) management on Tuesday ignored summons to appear before the National Assembly’s Public Investment Committee (PIC) to offer insight behind the firm’s reluctance to submit their financial results to Auditor General Edward Ouko.

Michael Sialai, the clerk of the National Assembly, had last month issued the summons after it became apparent that NBK officials were not cooperating with requests from the Office of the Auditor General despite the fact that the lender is more than fifty percent owned by the national government and NSSF.

According to a news report by the Business Daily, NBK’s CEO Wilfred Musau confirmed receipt of the summons but failed to honor them nonetheless.

“NBK management had indicated that they would come, but (Tuesday) evening, the CEO said he was unable to come due to personal matters that had arisen,” PIC chairman Abdulswamad Nassir is quoted as saying by the Business Daily.

PIC had also summoned NBK’s management to offer insight on its takeover bid by Kenya Commercial Bank (KCB). At the start of the month NBK officials shocked the National Assembly Finance Committee after they revealed that they were not privy to the details of the proposed takeover by KCB Bank. Their admission has left the state of the proposed takeover shrouded in mystery.

Kenya’s Central Bank has however approved the takeover agreement between KCB group and the National Bank of Kenya. KCB offered to acquire the troubled lender in a share swap agreement in which NBK investors will gain one share in KCB Group for every ten shares they hold in NBK.

The proposed takeover has similarly been vouched for by CBK Governor Patrick Njoroge who identifies it as the only viable solution that can move the troubled banker out of the red.

ALSO READ: KCB wins shareholder backing for NBK takeover

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