Housing Finance has come out to deny reports that its Chief Executive Officer Frank Ireri overruled his colleagues from the credit department and approved loans to his in-laws and cronies.
In denying the claims, Housing Finance Group chairman Steve Mainda said that HF’s loan approval processes were beyond board. Upon review of the cases specifically mentioned, we state that the board is fully satisfied that the approval matrix was and continues to be strictly adhered to,” he said. “was at arm’s length, fully secured and with a clear business case.”
Housing Finance CEO has been accused in court documents by a former credit director of approving hundreds of millions of loans that now amount to Sh. 4.3 billion irregularly to his in-laws and to Equity Bank chairman Peter Munga.
These loans have been quoted in court as resulting into huge toxic debts that Housing Finance has been shy to report publicly. “”It is therefore not true, as alleged, that HFC intentionally misreported the non-performing loans position during the Rights Issue and state that this is actuated by malice and intended to serve other collateral purposes,” added Mainda.
