CMA PROCEEDS WITH SANCTIONS AGAINST REAL PEOPLE EX-DIRECTORS OVER KSH 1.6 BILLION BOND FRAUD
The Capital Markets Tribunal threw out an appeal from four ex-directors of Real People Kenya Ltd who wanted to stop disciplinary action by the Capital Markets Authority. On June 5, 2024, the tribunal made this call letting CMA’s special committee move forward with hearings. These hearings will look into claims that money from a Ksh 1.6 billion bond issued about ten years back, got moved around wrongly.
The tribunal said the proceedings should keep going and told the people who appealed to pay for the costs.
Norman Ambunya, Daniel Ohonde, Nthenya Mule, Charl Kocks, and Yvonne Godo, who’s on the board now, are in hot water. They’re accused of breaking corporate governance rules and parts of the Capital Markets Act. The tribunal didn’t buy their attempts to stop the disciplinary process.
Back in 2015, CMA dug into things and found something fishy. Money from Kenyan investors raised through bonds went to Real People’s parent company in South Africa instead of staying local. This discovery has nine former big shots, both Kenyan and South African, in legal trouble now.
CMA earlier slapped fines of Ksh 15 million on four other ex-directors of Real People. These fines related to their supposed involvement in diverting funds.
The tribunal’s latest ruling marks a big step in the ongoing legal battle. It backs up CMA’s power to probe and judge claims of financial wrongdoing. This shows how watchdogs take breaches of company rules and laws protecting investors in Kenya’s money markets
The result shows how tricky international money transfers can be and why we need rules to keep things clear and make sure people use investors’ cash . Everyone involved will watch as the case moves forward. They’ll pay attention to new info and choices that might affect the people in trouble and the bigger rules for Kenya’s money stuff.
