Kiereini protests at CMA probe

What you need to know:

  • In a judgment dated August 22, 2013, Justice David Majanja had reversed a ban by CMA, which blacklisted Mr Kiereini and six other directors from holding any position in listed companies, citing the fact that CMA denied him his right to a fair hearing.
  • The authority alleged that it conducted further investigations into CMC affairs and established that Mr Kiereini might have benefited from funds siphoned offshore estimated at Sh63 million.

Former CMC Holdings chairman Jeremiah Kiereini has criticised the approach used by the Capital Markets Authority in an investigation against him.

CMA recently obtained orders stopping him and companies affiliated to him from selling their shares in any firm listed on the Nairobi Securities Exchange.

Mr Kiereini, however, said CMA had failed to observe directions issued by the High Court in a separate petition in which it was directed to give him reasonable opportunity to defend himself before any enforcement action is taken.

In a judgment dated August 22, 2013, Justice David Majanja had reversed a ban by CMA, which blacklisted Mr Kiereini and six other directors from holding any position in listed companies, citing the fact that CMA denied him his right to a fair hearing.

FORENSIC INVESTIGATIONS

In the application challenging the recent action by the regulator, Mr Kiereini said South African firm Webber Wentzel, which had been appointed by the authority to carry out forensic investigations of certain aspects of CMC Holdings and its trading subsidiaries, produced a report containing generalised allegations against him, with no conclusive findings.

The authority alleged that it conducted further investigations into CMC affairs and established that Mr Kiereini might have benefited from funds siphoned offshore estimated at Sh63 million.

CMA had told the court that stopping Mr Kiereini, Kingsway Nominees Ltd and Kingsway Family Holdings Ltd from selling shares would enable it to recover money it was seeking from Mr Kiereini.

The orders have been extended to October 29, 2014 when all the parties will be heard.