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Daily Nation : February 23rd 2014
SUNDAY NATION February 23, 2014 CONTROVERSY | Treasury secretary says candidate was appointed on recommendation of CBK CBK denies hand in hiring of bank boss Central Bank boss insists they only appraised all candidates and forwarded report to Treasury BY ANDREW TEYIE @muholo email@example.com T he Central Bank of Kenya (CBK) has denied it approved the appointment of a candidate alleged to be a blacklisted debtor to head a statecontrolled bank. Last week, National Treasury Secretary Henry Rotich told Sunday Nation the CBK advised him to appoint Mr Geoffrey Ndambuki to head Consolidated Bank of Kenya after carrying out all necessary background checks. But CBK Governor Njuguna Ndung’u now says the regulator’s role did not include endorsing candidates. “CBK has not recommended the appointment of Mr Ndambuki or any other candidate as the chief executive officer of Consolidated Bank. The Central Bank was requested by the National Treasury in October 2013 to conduct a fit and proper appraisal of three candidates who had been recommended by the Board of Consolidated Bank for appointment,” Prof Ndung’u said in response to an enquiry by Sunday Nation. The credibility of Mr Ndambuki has been put in question after it emerged that the bank he is proposed to head is among those that had reported him to the Credit Reference Bureau as an alleged bad debtor. According to documents in our possession, Mr Ndambuki’s credit score has been described as “poor”, which goes against a key requirement for appointment to a senior position in a bank. Last week Sunday Nation reported that doubts had been raised over the recruitment process after documents indicated the board was not properly constituted because it lacked a quorum. Only three board members sat at the special meeting of directors held on May 17, 2013. Bank rules require a minimum of four directors to pass a resolution. But last week, Mr Rotich said he acted on the recommendation of CBK before he appointed Mr Ndambuki. “We forwarded the names to CBK. CBK did what is called fit and prosper test. They then advised us to appoint him. We acted on their recommendations. We will not have any problem after the regulator clears an individual. I am certain that in the fit and prosper test they did all the due diligence before returning the names to us. CBK also administers credit ratings in this test which is covered in the Banking Act,” he said. On Friday, Prof Ndung’u said that Treasury only asked the CBK Central Bank of Kenya governor Njuguna Ndung’u: Says bank’s role does not include endorsing candidates for appointment. to conduct due diligence on three top candidates. “After conducting due diligence, the Central Bank advised the National Treasury of the adequacy of the three candidates’ professional or education credentials and work experience, but CBK did not make any recommendations on the appointment of any of the three candidates,” said Prof Ndung’u. Mr Ndambuki outscored Mr Thomas Kiyai, Mr Kennedy Ouko and Mr George Rutto, among others, in the interview. Mr Ndambuki has previously worked for Co-operative, Gulf and Equity banks. Prof Ndung’u said although After conducting due diligence, CBK advised Treasury on candidates’ professional, education credentials, work experience” Prof Ndung’u the “fit and prosper test” carried out by CBK involved the review of the credit reference bureau reports for all candidates, the issue of non-performing loans was clearly brought out in their due diligence certificates. “Where non-performing loans where indicated, the reasons for the listing were provided and National Treasury Secretary Henry Rotich: Says CBK did a fit and proper test and advised Treasury to appoint Mr Ndambuki. evidence of resolution or payment provided in the form of clearance certificates from the Credit Reference Bureau,” he said, but he argued that the CBK could disqualify any candidate appointed to such a position if they got further information. “It should also be noted that once the Central Bank is formally advised of the appointment of a CEO by the board of Consolidated Bank, it can still disqualify him or her if credible and substantiated adverse information is provided pursuant to provisions of the Banking Act,” Prof Ndung’u said. According to documents from the CRB, the score for Mr Ndambuki, based on informational provided by banks, is 413 on a scale of 200-900 and is rated “Poor”. Sources within the National Treasury told the Sunday Nation that Mr Ndambuki has been discussing terms with the bank’s board. Consolidated Bank is fully owned by the government National News 9 Medical students face major hurdle BY OTIATO GUGUYU @googooyuh firstname.lastname@example.org Students who have attained a bachelors in clinical medicine from top Kenyan public universities are barred from practising by law. The course offered in Kenyatta University, Egerton, Mount Kenya University and Jomo Kenyatta University since 2009 is not recognised. Over six hundred students are now in the limbo after graduating and serving in different hospitals countrywide as interns. When the interns tried to consult with the Health Ministry and the Office of the Deputy President, they were warned that their internship was illegal. “We learnt in a meeting with a personal assistant of the principal health secretary that our internship is illegal,” said Muthwaka Onesmus. Health Cabinet Secretary James Macharia said the affected students should submit a formal memorandum to the ministry to have their issues addressed. “We urge them to present their memo to us to have their issues addressed.” “We have spent over Sh1.5 million in our four years in university in expenses and tuition and have nothing to show for it,” Mr Muthwaka added.
February 22nd 2014
February 24th 2014