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Caption: Cooperative Bank of Kenya is a bank of thieves! It’s headed by crooks like Gideon Muriuki and Stanley Muchiri. No wonder customers complain of weird deductions and unexplained errors.
The truth of the matter is that the Managing Director and thief par excellence Gideon Muriuki, the Directors and senior staff borrowed from the bank and bought shares BEFORE the Initial Public Offer (IPO). It is against the law to lend money for the purchase of your own shares.
1.The fact is they bought shares before the IPO, before the share split and at different price than the IPO price indicates corruption that should not go unpunished. The fact that they did this knowing that the bank would be doing an IPO is what is called insider trading.
2. The rest of the staff bought during the IPO. This is what you would call an Employee Stock Ownership Plan (ESOP).
If you are a member of a co-operative society that is a shareholder of the bank, just know that you are the one who was duped and your money stolen because otherwise who owns co-operatives? It is you and me.
Ask yourself how comes the rest of the staff did not make hundreds of millions yet they were also made to borrow and buy the shares.
The trick was with the share split. Anyone who had one share, was given 100.
This is how Gideon Muriuki, Stanley Muchiri, the Board and senior executives stole from the Cooperative Bank.
1. Before the IPO allocate each of yourself lots of shares. The Managing Director got say 680,000 shares. Over the counter (OTC) price was between shs60 and 80. So he borrows says Kshs. 50m from the bank and buys the shares. Please note that the shares were acquired before the IPO. They never bought them during the IPO.
2. Carry a share split of 1:100. So he ends up with sixty-eight million (68,000,000) shares.
3. AT the IPO with a price of 9.50. The man is already worth six forty-six million (646,000,000.00). At the current price of 18 the man is worth Kshs. 1.2b.
4. The rest of the staff are made to buy the shares at IPO price. So say a staff buys same number of shares as the MD. 680,000 shares. IPO price 9.50. Therefore 680,000*9.50=6.4m. At the current price, the follow is worth 680,000*18=12.2m. I hope the clever guys here can see the connection between the 12.2m and the 1.2b. IT IS THE SHARE SPLIT BEFORE THE IPO.
The same game was played at Cooperative Insurance Company (CIC). Just check their financials and see how many shares the Co-operative Bank MD and CIC MD have. That is why Co-operative Bank has heavily invested in CIC more than other co-operatives because of this monkey business by Gideon Muriuki, the thief who is bribing Deputy President William Ruto for protection.
As for the coffee written-off thing, the evidence is there. IT will come out one day.
The thing about the media not covering the story out of compromise; The former MDs PA knows how he was able to achieve this all along. We also have a list of journalists and MP’s who are on the payroll of Cooperative Bank’s MD Gideon Muriuki to help cover up this industrial scale heist.
And in a clearly choreographed move; Ruto’s wife was given a Kshs. 5 million “donation” by the bank the other day for her foundation. The money was to basically continue buying protection from the Deputy President. Gideon Muriuki thinks he can buy protection from God. What a pathetic human being!
This is the time when Kenyans should make necessary noise. Petition for the arrest of Gideon Muriuki and the entire board and top executives or withdraw your money and move it to another bank. It’s that simple. Otherwise Kenyans have lost confidence in Cooperative banks in its current structure.
Their response to our expose was very shallow and they did not address the issues raised, but rather engaged the public and media in blame games and diversionary tactics. We still need answers!