Setback for Philomena Mwilu as bank denies giving her Sh12 million loan
DPP has said the money was a bribe
The Director of Public Prosecutions Noordin Haji wants to charge Mwilu with various corruption-related charges after she allegedly took a Sh12million bribe from Imperial Bank which is now under receivership.
The DCJ had protested saying that the matter was not criminal but a simple civil matter of a contract between a bank and its customer.
However, Imperial Bank’s credit manager Peter Nzuki told the court that the Sh12 million given to Mwilu was approved in inappropriate circumstances contrary to bank-customer relations.
Nzuki said that the circumstances under which Mwilu received Sh12 million did not qualify to regarded as a loan.
The bank manager said that for a loan to be advanced to a client, credit-worthiness is done after the client has applied for the loan. An offer is then made specifying the terms of repayment.
In the DCJ’s case, she did not apply for the loan as required, no credit-worthiness was done, and no offer letter was presented to her explaining the terms.
“Facilities at nil (zero interest rate) are discounted loans where interest is recovered upfront upon disbursement and non-performing accounts which interest is suspended as per Central Bank of Kenya guidelines. The disbursement of Sh12 million did not qualify for this. The loan was authorized by one Mehbooba Shamji contrary to the procedure laid out in the bank’s credit manual where such loans are to be authorized by the bank’s credit committee,” Nzioki told the court.
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