MPs yesterday threatened to have the former Central Bank of Kenya governor Njuguna Ndung'u arrested for ignoring their summons to explain why some banks had financial trouble shortly after his tenure. The committee resolved to grill Ndung'u in April after CBK chairman Mohammed Nyaoga told the MPs challenges facing banks today emanate from the former CBK governor's failure to take immediate action against Dubai Bank, Imperial Bank and Chase Bank. Nyaoga revealed the affected banks continued with their normal operations despite violating and ignoring the banking regulations and the CBK recommendations to ensure they are not put under receivership. It has resolved to write to Ndung'u for a second time before asking the CID to arrest him if he defies the summons again. "We were only told former CBK governor wrote to this committee through his lawyer in response to our invitation but we have not seen his letter.

Source: The Star June 08, 2016 03:11 UTC