Former CBK boss, Treasury CS to face MPs over banks’ collapse

Former CBK boss, Treasury CS to face MPs over banks’ collapse

Former Central Bank of Kenya Governor Prof. Njuguna Ndung’u will Wednesday be grilled by the National Assembly Finance Committee on the crisis facing the banking sector and his role during his tenure.

The committee is probing the state of banks in the country following the recent closure of banks and is expected to report to the House within 30 days.

MPs turned their guns on the past CBK leadership demanding that it be investigated in the wake of massive fraud, poor governance and weak oversight that has seen three banks collapse in nine months.

The Committee will also grill National Treasury Cabinet Secretary Henry Rotich on the state of the banking sector.

The banking sector has been under pressure to restore confidence after a series of mishaps exposed the industry’s underbelly.

Three banks in under nine months have been placed under receivership by the Central Bank, with tales of mismanagement at the center of most cases.

While the Central Bank has given reassuring the country is that the banking sector was sound, the Kenya Bankers Association (KBA) has also stepped in in an effort of taming rogue elements.

Wayward banks risk being penalized and even locked out from benefits enjoyed by other banks.

KBA signed on to the “Code of ethics for business in Kenya”, and announced plans to adopt a self-regulatory framework and conduct standards for member banks.

KBA joined other institutions and companies in signing onto the private sector code of ethics that seeks to enhance an organisation’s ethical standards and business conduct

The “Code of ethics for business in Kenya” is an initiative by the business community in Kenya to promote and enhance the ethics of business conduct.

It was developed under the United Nations Global Compact which asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption.

Source:http://citizentv.co.ke