Auctioneer hammer to fall on defaulters of CMA fines
SEE ALSO :Listed firms hit by slowing economyThis has seen several market players fined as well as the introduction of a reward scheme for whistle-blowers and the carrying out of a governance audit of listed firms. Among those who have run afoul of the regulator’s regulations include veteran investment banker James Murigu who was ordered to pay Sh660,000, being the pay he received as director of Uchumi, while Bartholomew Ragalo was ordered to pay back the Sh855,000 he earned as a board member of the ailing retailer. Although High Court Judge George Odunga later scrapped the penalties on the retailer’s directors on charges of fraud over the flawed Sh895 million rights issue in 2014, CMA has reviewed the ruling and redrafted contraventions against them. The regulator is also pursuing Former National Bank of Kenya managing director Munir Ahmed whom it slapped with a Sh5 million fine and kicked out of the market for three years while the former head of Treasury Solomon Alubala was fined Sh104.8 million and disqualified for 10 years. The ailing listed lender’s former chief finance Office Chris Kisire also has a Sh1 million fine hanging over his head while its former chief credit officer George Jaba and Wycliffe Kivunira, who served in the same position on an acting capacity were fined Sh1 million each for misrepresentation of financial statements and “failure to relay correct information on provisioning to the board respectively.”
SEE ALSO :NSE key index dips as bank stocks ruleMr Bid is not new to CMA reproaches. He was previously fined Sh30,850 for buying and selling Eaagads Shares to manipulate its value. The regulator warned Somchand for wash trades - a form of market manipulation in which an investor simultaneously sells and buys the same shares to create artificial activity - conducted on Eaagads’s shares on February 23 and 24, 2017. In another case, Kumar Sheth Harshad was fined Sh50,000 for the manipulation of Nairobi Business Ventures shares. Francis Drummond and Company Ltd have also been cautioned over allegations of manipulating TransCentury shares.
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