Category Archives: Auditors

Imperial Bank EOI

EDIT – July 24, 2018: The Central Bank of Kenya revealed that KCB was in the lead to acquire Imperial Bank. They submitted a revised bid as another bidder dropped out and CBK and KDIC will continue discussions with KCB about enhancing value for Imperial Bank depositors.

 

Original – September 8 2017 Today the Central Bank of Kenya (CBK) has invited investors (PDF) in an expression of interest (EOI) offer to buy into Imperial Bank, in a move that echoes another ongoing one at Chase Bank.

Imperial, Kenya’s 18th largest bank, was shut in October 2015 following revelations that only emerged after the sudden death the sudden death of Imperial’s group managing director (GMD), Abdulamek Janmohamed, in September 2015.  The bank had assets of Kshs 56 billion and officially had about Kshs 47 billion of depositor funds as at December 2014.

Since the closure, thousands of small depositors have been paid off the but many wealthy depositors  including the elderly, Italians and Asians families and business people still have tens of millions of shillings in deposits there – funds that they had placed for the high returns offered at the previously solid (apparently), fast-growing, business-friendly, and award-winning bank.

It appeared that the bank was headed for liquidation, but for a sudden change of plan and decision to salvage Imperial Bank three months ago. A new timetable was posted and the CBK Governor met depositors of the bank to reassure them of the new process, and they have been keeping track since.

 

The deadline for the EOI is September 29, three weeks away, after which short-listed investors will be invited to see confidential data on the bank. This is despite a long forensic audit and data mining process that was started after the GMD died, some results of which have been cited in court documents and media reports – and which paint a shocking picture about the tenure of Janmohamed and oversight by regulators at the CBK.

Proposals from the short-listed investors are expected in January 2018 for further discussions with a single preferred bidder in February along with other consultations with the shareholders, depositors, and creditors of Imperial Bank.

KPMG has been appointed as a transaction advisor for the Imperial Bank EOI as they also are in the Chase Bank one.

Forensic Audits and other Peculiar Kenyan words

One of the most used phrases this year has been forensic audit. But many people don’t understand what these special audits into past matters and closed files are,  or how they differ from regular / normal / annual / other audits.  e.g. MCA’s in Nairobi and Mombasa have asked for a forensic audit to look at car loans and imprest at their respect county assemblies.  Audit Files

One of the reasons why the public knows the  phrase “forensic audit” is because quite a few have been done, or are still ongoing this year, but are already in the news:

  • To investigate the losses, and revenue leakage, at Kenya Airways (The Board requested, and this was done by Deloitte)
  • Chase Bank – the Receiver Manager & Central Bank of Kenya have asked for one look at director borrowings and other factors in the shut down of the bank earlier this year.
  • Kenya’s auditor general has said he will do one to look at the proceeds of the 2015 Eurobond and his teams will travel to the US and UK to question bankers there about the deal, which opposition politicians have made allegations about.
  • Imperial Bank directors asked for one to look into hidden transactions at the bank after their Managing Director died (A report done was done by FTI Consulting)
  •  It’s been reported that all Kenyan banks have been asked to conduct external audits on insider loans.
  • One was done to review management decisions at Mumias Sugar (Report done by KPMG)
  • President Kenyatta has asked for one to look at how funds for Free Primary (and Secondary) Education have been used.
  • At Safaricom to look at recent procurement  (The CEO requested and a report was done by KPMG).
  •  At Uchumi to look at actions of the previous management (The Board requested, and a report was done by Deloitte).

Besides forensic audits, other peculiar Kenyans words & phrases elevated this year include sponsor, covenant, mood, lacuna, slay, blessee,  watershed, and “it is well noted“, “sent as received”, “major key alert”, and “Insert Inspirational quote”.

Increased Scrutiny of Bank Directors

Today’s newspapers have the annual general meeting (AGM) notice from Cooperative Bank (Coop). There are some subtle differences from years past, which may indicate stricter rules for all banks, especially in light of the recent bank issues at Chase and Imperial. This is in terms of clearing directors who are meant to be the safeguards for the banks and they depositors whose funds the banks collect and hold.

Coop Bank AGM notice

  • There are now separate shareholder votes for members of audit committee each year. Questions have been asked about the quality of audits done at Chase and Imperial, and internal auditor and external auditors report to board audit committees.
  • Also in the past, nominees would be appointed by bank shareholders. But you see wording to the effect that shareholders are voting  to approve directors, but that this is  “subject to regulatory approval” i.e the Central Bank of Kenya (CBK) will have to vet and approve that the individuals proposed to sit on the boards are fit & suitable.
  • It is also said that the 70 year age rule is now being challenged. Companies have in the past voted to re-elect directors over 70 years, but it is said that the CBK is now challenging the necessity of having elderly, long-serving directors continue to sit on bank boards,  in light of the needs to reinvigorate boards with new blood who understanding modern banking challenges.

Jobs, sports & addiction

Bank Jobs

Chase bank
– Chief internal audit & compliance officer. Applicants should be graduates with professional qualifications and 3 years similar experience.
– Manager, risk analysis: applicants to be graduates with professional qualification and 3 years similar experience
Applicants for both positions should be aged 35 and below, have good IT skills and knowledge of their sectors. Apply to manager human resources & administration, chase bank, P. O. Box 28987-00200 Nairobi by 17 December 2, 2005.

Equity bank
Security officer. Applicants should be aged 30 -4 40 with at least 5 years armed forces or police experience and with knowledge of banking fraud. Apply to the human resource manager at securityofficer@ebsafrica.co.ke by December 9.

anon bank
Liabilities manager who will mobilize deposits. Applicants should have business degree and at least five years marketing experience. Apply to DN.A/570 box 49010-00100 Nairobi by 20 December.

Consulting Jobs

KPMG International
– Regional finance manager (Ref RFM-05). Applicants should be qualified accountants with 5 years senior management experience and skilled in budgeting and modeling.
– Senior Accounts Assistant (SAA-05). Applicants should be qualified accountants and graduate with three years experience
– Accounts Assistant (AA-05). Business degree and 3 years relevant experience required.
Apply to esd@kpmg.co.ke by December 16

PricewaterHouseCoopers
Invites applicants to join its transactions team as;
– Executives: applicants should be graduates with at least 3 years corporate finance or transaction experience as well as marketing and deal making
– Managers. Must have min of 5 years corporate finance or transaction experience including infrastructure in both public an private sectors
Apply to the human capital coordinator at recruitment.ke@ke.pwc.com

Other

Transparency International
– Deputy executive director at Kenya chapter. Applicants must be Kenyans of high degree of integrity who are technical experts capable of program development and management. Apply to recruit@adeptsystems.co.ke by 16 December

Brookside Dairy
– Cost accountant
– Assistant accountants
– Account assistants (Ruiru & Mombasa)
Apply to the human resource manager at hrm@brookside.co.ke by December 16

hr firms
Some human resource firms who recently advertised some jobs are;
– www.hawkins.co.ke
– www.jobsnow.co.ke

for most of these check the daily nation, Friday December 2

not a drug yet
internet addiction is as high as 6 – 10% among users.

Sport highlights
Saturday 03 December
3:30 PM Liverpool vs. Wigan Athletic
6 PM Bolton vs. Arsenal & Chelsea vs. Boro & Newcastle vs. Aston Villa
8 PM Man Utd vs. Portsmouth
10 PM Real Madrid vs. Getafe

Sunday 04 December
5 AM No Respect Boxing; Bernard Hopkins vs. Jermaine Taylor
7 PM Charlton vs. Man City
9 PM Villarreal vs. Barcelona