Old Mutual suspends staff as it probes irregular trading

by Jackson Okoth

Two members of staff have been suspended in ongoing investigations into irregular trading at Old Mutual Asset Managers (OMAM).

The Standard could not immediately establish their names or positions in the company. However, internal communication by Old Mutual Kenya’s Group CEO, Bertie van der Walt, obtained by The Standard indicated that Kenya’s biggest the fund manager, was keen on nipping in the bud any fallout from the scandal. In his communication, the Group CEO acknowledged that irregular actions by some staff may have occurred, but reiterated that the firm was taking it seriously, hence the suspension of the two persons.

Appropriate action

"As an organisation that prioritises good governance, sound controls and compliance in our operation, a full investigation has been launched in order to ascertain what has in fact transpired so that we can in turn take appropriate action to rectify the situation as required," wrote the CEO.

Credible sources within the company said the actions under investigation involved improper trading in unit trusts by some of the firm’s portfolio managers and stockbrokers.

While the OMAM auditors had warned the firm of this situation earlier, the problem had persisted for months.

 

 

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