By Jacob Juma
Fellow Kenyans, I have always complained about Equity Bank as a Ponzi Scheme. I know exactly what I am saying. It is a rogue bank that is used by Mt. Kenya mafia to fleece Kenyans.
It is a bank that Dr. Njoroge, the new CBK Governor should keenly supervise and unearth the under- dealings perpetuated by James Mwangi,the CEO.
The latest such improper dealings is where the bank issued a performance bond of sh606 million to Sinohydro contractors of Garden City Mall in favour of Actis, the developer of Garden City Mall. Sinohydro failed to perform the contract, Actis was to cash the bond in 5 days upon Equity receiving a written demand from it. Instead the bank has colluded with the contractor to frustrate the bond payment. What type of banking is this? A bond is as good as cash.
Now, when an issuing bank frustrates its payment, serious banking queries arises.
Such a bank is supposed to be put under receivership by CBK immediately. This is similar reasons Imperial Bank was put under receivership. CBK should apply supervisory regulations fairly across all commercial banks.