{"id":786420,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/786420/?format=json","text_counter":12,"type":"speech","speaker_name":"Hon. Njomo","speaker_title":"","speaker":{"id":1784,"legal_name":"Jude L. Kangethe Njomo","slug":"jude-l-kangethe-njomo"},"content":"(a) THAT, in April 2016, Chase Bank was put under statutory management by the Central Bank of Kenya following liquidity issues. Subsequently, after two weeks of the closure of the bank, Chase Bank was put under the management of the Kenya Commercial Bank; (b) THAT, in January 2018, a Malaysian lender, SMB Holdings, received an approval from the CBK to take over Chase Bank; (c) THAT, as part of the deal, CBK indicated that SMB Holdings would acquire the lender’s carved assets and liabilities and absorb the staff of Chase Bank; (d) THAT, the United Bank Limited of Dubai and its London subsidiary have filed a suit in the High Court seeking to stop SMB Holdings from acquiring Chase Bank; (e) Further that United Bank Limited of Dubai and its London subsidiary allege that Chase Bank depositors have not been informed of the proposed acquisition by SMB Holdings; (f) THAT, CBK and Kenya Deposit Insurance Corporation have not provided information on how SMB Holdings was identified, noting that various local banks have the capacity to acquire Chase Bank; (g) Concerned that under similar circumstances, CBK gave an approval to SMB Holdings to take over the collapsed Imperial Bank and the depositors are yet to be updated regarding the status of the assets of Imperial Bank; (h) THAT, efforts to resolve this matter with relevant Government agencies have been futile; and, (i) THAT, the matter presented in this petition is not pending in any court of law. Therefore, your humble petitioners pray that the National Assembly, through the Departmental Committee on Finance and Planning— (a) Cause an audit into the said acquisition process by SMB Holdings and general status of the banking sector in the country and establish whether any on site supervision has been undertaken in the past two years by the CBK; (b) Establish whether the CBK conducted its supervisory role prior to collapse of Chase Bank and Imperial Bank; (c) Establish the actual financial status of Chase Bank and Imperial Bank and establish whether the CBK undertook to provide technical or financial support to SMB Holdings in connection with the acquisition of Chase Bank; (d) Ensure that the petitioners’ plight is addressed and make any other order or direction that it deems fit in the circumstances of the matter. And your petitioners will ever pray. Thank you."}