Caption: Endorsing thieves since 2013, pictured here is Cabinet Secretary Adan Mohammed with Cooperative Bank Chairman Stanley Muchiri. Jubilee operatives only interact with corporate crooks.
Senior employees of the Cooperative Bank of Kenya, members of the Board and co-opted senior civil servants used bank money to “buy” themselves (because there’s actually no proof they repaid the loans) a massive chunk of shares before they went to be publicly traded at the Initial Public Offer (IPO).
The named officials have made billions of Shillings since 2008 and left the original shareholders (who largely comprise of farmers and co-operatives) locked out of trading to date – using the technicality of framing them as “anchor shareholders.”
If the Capital Markets Authority (CMA) headed in an acting capacity for the last 7 years by Francis Muthaura’s incompetent son, had done some due diligence it would have nullified the shares held by Gideon Muriuki the CEO and mastermind of the corporate heist, Stanley Muchiri the thieving Chairman, and the other named officials.
CMA should have frozen the private accounts of Gideon Muriuki, Stanley Muchiri and the rest, pending restitution to the ordinary (original) shareholders plus the accrued dividends and capital gains. But we wouldn’t expect the compromised and incompetent son of Francis Muthaura to do anything, as he is a political appointee, largely earning pay for doing nothing.
Co-operative Bank’s response to our exposè misses the fundamental point – the matter is not an attack on the Bank’s bottom line – it is a close look at various illegal activities which led to a shareholding structure that is really a sophisticated economic crime by employees who breached their fiduciary duty to shareholders, for the sake of personal profit
This is what a Capital Markets Authorities worldwide are essentially for, but since ours is more or less dead, we call on the Ethics and Anti-Corruption Commission (EACC) and other criminal law enforcement authorities look into this economic crime. We would have wished to also petition CID Director Ndegwa Muhoro, but this might be another opportunity to extort money from Cooperative Bank officials, an activity he would really like. His exploits at Tatu City still fresh in our memories.
With all the evidence presented, all the information and clarification posted, what else is needed to arrest Gideon Muriuki, Stanley Muchiri and their accomplices for executing such an elaborate economic crime? How many hashtag campaigns must we do for EACC officials to storm Cooperative Bank and arrest these officials? Do investigators need google-maps to show the location? Shall Kenyans be doing their work for them?
Even Central Bank of Kenya with the sanctimonious Opus Dei character has remained mum even as it’s own rules were flagrantly flouted, leading one to speculate if Patrick Njoroge has already been compromised.
Bank Directors’ Prohibitions – Central Bank of Kenya Rules.
Misuse of Position
a) Directors, chief executive officers and management must not use the institution’s name or facilities for personal advantage in political, investment or retail purchasing transactions, or in similar types of activities. Directors, chief executive officers and management, and their relatives must also not use their connection with the institution to borrow from or become indebted to customers or prospective
customers. The use of position to obtain preferential treatment, such as purchasing goods, shares and other securities, is prohibited.