PHOTO CAPTION: CBK Governor Patrick Njoroge
While addressing elected MPs on the Economic Status of our country, Central Bank of Kenya (CBK) Governor Patrick Njoroge on Monday expressed a huge sigh of relief, claiming that some unnamed people tried to instigate a Goldenberg kind of scam three months before the General Election.
Dr Njoroge said the actors in the Kenyan currency market and commercial banks whom he termed rogue played a key role in the weakening of the shilling against the dollar recently.
The CBK boss, however, refused to divulge any names and details on his allegations, saying he had no investigative capacity.
“I don’t want to get into the details because they will ask me where is the proof and I will say I don’t have proof – I am not the DCI,” he indicated to the bemused lawmakers.
A few days later, a section of trusted insiders within CBK has now come forward to allege otherwise.
In a submission forwarded to this blog on Wednesday, September 21, a source within the monetary organization gives a detailed analysis purporting how Mr Njoroge was complicit in the malpractices carried out by the previous regime.
“Hi, Nyakundi,
Out of the blue, the CBK Governor is all over the media, insinuating a sigh of relief as a result of the change of power.
He has been a willing accomplice to the malpractices.
I. PHASING OUT OF THE OLD KES 1000 NOTES.
Taxpayers’ money was wasted on this fishing expedition.
The Governor allowed CBK to be used by the ruling elite to try to cripple their competitors financially.
At what cost to the general public?
II. ARBITRARY APPLICATION OF BANKING RULES/REGULATIONS
A big stick has been wielded on banks such as Imperial and Chase bank while banks like NCBA, Spire and Kingdom bank have had soft landings.
III. DEBT LEVELS.
The Governor never once came out to strongly advise against debt levels on the pretext that it’s a Treasury preserve.
Where is this newfound confidence to address the issue coming from if not to save face?
Mr Mbui Wagacha a former CBK board member and who subsequently became President Kenyatta’s economic advisor, is known to have resigned when the debt level to GDP was at 56% and yet his advice against debt wasn’t being heeded.
Such are the people who have the moral authority to talk ill of the outgoing government.
IV. “MANAGEMENT” OF KES.
It’s an open secret that the Governor has “managed” the KES exchange rate as opposed to letting the market forces determine it.
A review of prompt, unceremonious and demeaning transfers of some objective staff members from the Financial Markets Department to other areas can bring this fact to bear.
V. AN ASSAULT OF THE LAID DOWN GOVERNANCE STRUCTURE.
Previously, becoming a CBK Director was not a walk in the park.
Your leadership abilities, character and integrity were put into a razor-sharp scrutiny for a long duration before ascending to the position.
In came Dr. Njoroge, and Junior management employees from relatively inferior organizations were directly recruited to Directorship.
Cherera-like appointments were done with disastrous consequences:
• Internal Audits independence as envisaged was heavily compromised by Dr. Njoroge. Director Internal Audit was not competitively recruited; he transferred his hand-picked Advisor to head the Department. Rather than receive Internal Audit reports for information and action, he must clear them before they are issued. He also influences the area to be audited. Non-conforming Internal Auditors have had to exit or be forced out.
• Newly recruited HR Director turned a Staff translation exercise that was supposed to bring equity into career progression, based on experience and qualification, into an exercise to award cronies and punish employees not deemed amenable.
• Newly recruited Director Procurement engaged in capital projects not related to CBK mandate. If a commission of inquiry on state capture/misuse of public office is instituted, CBK should not be left out of the loop,” writes the source.
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