I&M Bank, EcoBank CEOs Summoned Over Alleged Improper Cash Transfers

The High Court has summoned chief executive officers of Eco Bank and I&MI&M Banks over the release of millions belonging to a payment solution firm.

Justice Prof. Dr Wafula said the CEO’s should appear personally to explain the transfer of millions belonging to Kiwipay Kenya limited, despite a court orders stopping the said transfers.

Kiwipay Kenya ltd and the director and main shareholder Monthida Rashi applied for the summons against the two Banks CEOs to shed lights on the transfer of the millions.

The firm is also seeking consolidation of all matters relating to company and the judge said he will give his directions on May 17.

Rashi says in the latest petition that several law firms have filed consents and obtained orders for payments of legal fees and consultancy charges, without resolution from the company.

She pleaded with the High Court for all matters touching on the billions being held at Eco Bank be consolidated and heard by one judge.

Early last month, Justice Josephine Mongare directed the files be placed before Justice Alfred Mabeya for directions.

“That Court be pleased to issue such directions as are capable of safeguarding the funds of the company held in three Bank account Numbers in Ecobank Kenya Limited, Muthangari Branch Nairobi from wastage, mismanagement or misappropriation,” Rashi said in court papers.

She told the court she has been frustrated by various court orders as an investor and several law firms have obtained the orders for exorbitant payments.

The foreign investor revealed that USD 930,000.00 was paid to G.M. Gamma Advocates LLP, which was acting for Eco Bank limited, USD 400,000.00 was paid to Wambugu & Muriuki Advocates on November 21 and USD 2.502.675 paid to Rene & Hans Advocates LLP on 27 March, 2023.

“The court be pleased to suspend the orders issued by the Court in HCCOM NO. E454 of 2022 Avistia S.R.O Limited Versus Kiwipa PTE Limited and 3 others on 17th November, 2022 with effect of freezing USD 13,473,900 from Kiwipay Kenya ltd account held at Ecobank Kenya Limited pending the hearing and determination of this application,” she said.

The company further wants US Dollars 4,989,549.00 be released it from account held at Ecobank Kenya limited to offset pending bills including taxes against the Company.

The company urged the court to suspends all other monetary transactions sanctioned by court vide orders obtained by the aforesaid firms of advocates relating to the Kiwipay Kenya ltd.

“Unless the matter here is certified as urgent and the same heard expeditiously the applicant herein is going to incur unjustified loss of money or capital,”Kiwipay Kenya ltd told the court.

She said Kiwipay Kenya ltd has been served with a notice by the Kenya Revenue Authority and is likely to be penalized for not meeting its statutory obligations.