Parliament directs Auditor General to audit NBK

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Parliament has given the National Bank of Kenya  two weeks to be audited by the office of the Auditor General.

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The Public investment committee says NBK is under-priced hence the need for the bank to be valued by the state’s audit office. NBK management has been opposing audit by the OAGs saying the bank is a private entity.

The Kenya Commercial Bank has offered to buy 100% of National Bank of Kenya through a share swap of 1 KCB share for every 10 of NBK shares.

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The deal that has been okayed by the Central Bank of Kenya seeks to give the troubled lender a financial lifeline after a loss-making streak. The share swap deal puts the value of national bank at 6.6 billion shillings.

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The deal has caught the eyes of the National Assembly with public investment committee faulting the deal.

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The PIC says its conducting investigations on the proposed takeover to determine whether the interests of the pensioners, employees and taxpayers have been protected in the deal.

After failing to honor PIC’s summons earlier, the top management of the bank finally appeared before the house committee to among other things shed light on NBK’s shareholding, asset base, liabilities and the takeover bid by the KCB.

The management has faulted the audit by the office of the Auditor General saying it’s not a public lender.

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The listed lender is 48.1 percent owned by the National Social Security Fund while National Treasury owns 22.5 percent of the lender. The rest is owned by public.

The parliamentary committee has directed the bank to provide its books to the Auditor General for a through audit and given the AOGs office 14 days to table an audit report on the financial position of the bank.

 

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