Chase Bank directors, auditors fined Sh36m for botched bond

A branch of the now liquidated Chase Bank in Nakuru town. [Kipsang Joseph, Standard] The Capital Markets Authority (CMA) has fined former directors of Chase Bank Kenya and its former auditors a total of Sh36 million. They were penalised for their role in the issuance of a Sh10 billion bond a year before the bank was placed under receivership. The regulator yesterday also announced bans on the eight former directors from holding similar positions in listed companies in Kenya for up to 10 years, one of the harshest fines the regulator has levied in recent years. "CMA takes enforcement action against former board members and senior management of Chase Bank Kenya Ltd (in liquidation) and its reporting accountant regarding an inquiry into Chase Bank Kenya Ltd (in liquidation) following the issuance of Medium-Term Note (MTN) in 2015," said CMA in a statement. Among those penalised is Mr Duncan Kabui, who was at the time the group managing director. Mr Kabui has been fined Sh5 million and disqualified from being a director or key personnel of any issuer, licensed or approved person in the Kenyan capital markets for 10 years. Mr Paul Njaga, a former chief executive, has also been fined Sh5 million alongside Mr Ken Obimbo, the group finance director at the time of the transaction. Both have also been disqualified from being directors or key personnel of any issuer, licensed or approved person in the Kenyan capital market for five years. Mr Anthony Gross, who was a board member and chairman of the Audit and Risk Committee at Chase Bank at the time, has been fined Sh2.5 million and directed to attend corporate governance training for a minimum of five days. Other board members who also sat on the Audit and Risk Committee, including Mr Laurent Demey, Ms Muthoni Kuria and Mr Rafiq Sharrif, have all been fined Sh2.5 million, while Mr Richard Carter, another board member, has been fined Sh1 million. "Deloitte and Touche, the CBKL (Chase Bank Kenya Ltd) reporting accountant at the material time has been fined Sh10 million," explained the regulator. "Further, the committee recommends that the conduct of the accounting partners during the respective audit periods be taken up by ICPAK (Institute of Certified Public Accountants of Kenya)."

Chase Bank directors, auditors fined Sh36m for botched bond

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Chase Bank directors, auditors fined Sh36m for botched bond

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