Former CBK governor Njuguna Ndung’u was subjected to thorough scrutiny on Tuesday over multiple graft charges leveled against him.
Ndung’u, who appeared to be vetted by the National Assembly committee for the position of Treasury Cabinet Secretary, was forced to clarify several issues since his integrity was at stake.
First, he was asked to clarify his involvement in the Grand Regency Hotel scandal.
The controversy centered on the no-bid nature of the Grand Regency Hotel sale, the secrecy with which it was negotiated, the identity of the buyers, and the price of the luxury hotel, which was reportedly KES 2.9 billion Kenyan.
“I have defended myself through the court process, I was asked to surrender the money to drench the Lamu Port,” Ngung’u said.
Ndung’u was also questioned about the Imperial Bank collapse, from which he distanced himself, claiming that he was not the CBK’s head at the time.
“Imperial bank never collapsed when I was at the Central Bank, I had already left. It was several years after I had left,” he said.
“Bottom line is I was never part of that.”
In October 2015, Imperial Bank was placed in receivership. Between 2007 and 2015, Ndung’u served as CBK governor for two four-year terms before being succeeded.
He also found himself on the defensive in front of MPs, accused of violating several procurement laws while running the Regulator.
“I never flouted any laws while at central bank,” he said.
“I have been a victim of abuse of the criminal justice system. The whole idea was to get Prof. Njuguna Ndung’u out of the Central Bank of Kenya,” Ndung’u added.
