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.