High court quashes fraud charges against for former Uchumi CEO Jonathan Ciano
The High Court has quashed fraud charges against Uchumi Supermarkets' former Chief Executive, Jonathan Ciano, over a flawed 895 million-Shilling Rights Issue in 2014.
Justice George Odunga faulted the disciplinary process noting that a forensic audit by KPMG which unearthed the alleged malpractices at Uchumi was not availed to Ciano on time to prepare his defence.
The Capital Markets Authority had slapped Ciano with a financial penalty of 5 million Shillings and sought to seize 13.5 million Shillings deemed as proceeds of crime as he did not declare a conflict of interest to the Uchumi board. A forensic audit by KPMG established that Mr Ciano and his wife were among Uchumi’s largest vegetable suppliers. The ruling comes a few weeks after the CMA drew fresh charges against former directors of Uchumi Supermarkets after the High Court struck down penalties that were issued to them two years ago.
Tue Apr 10 21:59:34 EAT 2018