BUSINESS NEWS
The Capital Markets Authority has cleared a former director of collapsed Imperial Bank of wrongdoing in the lenders’ issuance of a Sh2 billion corporate bond just one month before its collapse.
Chris Diaz had argued in his defense that he joined the bank as an independent and non-executive director after the decision to issue the bond was made.
Mr Diaz appeared before the CMA’s ad hoc committee that the regulator constituted to investigate the matter after he broke ranks with fellow directors, who rejected the CMA’s role in the matter.
Eight Imperial Bank directors, including Alnashir Popat, Omurembe Iyadi, Jinit Shah, Anwar Hajee and Hanif Somji, declined to appear before the committee arguing that Section 11(3)(cc) & (h) of the CMA Act is unconstitutional because it allows the regulator to play overlapping roles.
Imperial Bank directors block CMA probe into Sh2bn bond
Thursday April 15 2021
By OTIATO GUGUYU
Summary
Imperial Bank directors have stopped the Capital Markets Authority (CMA) from pursuing them over the Sh2 billion corporate bond that the lender issued a month before it was placed in receivership.
The eight directors have blocked investigations through the CMA tribunal on grounds the probe team will be impartial.
Imperial Bank directors have stopped the Capital Markets Authority (CMA) from pursuing them over the Sh2 billion corporate bond that the lender issued a month before it was placed in receivership.
The eight directors have blocked investigations through the CMA tribunal on grounds the probe team will be impartial.
CMA To Hunt Collapsed Imperial Bank Directors Over Ksh2 Billion Bond
The Supreme Court has allowed the Capital Markets Authority (CMA) to go after directors of collapsed Imperial Bank who issued a Ksh2 billion bond a month before it collapsed.
In court filings, CMA said that the lender issued the bond despite the directors knowing that the bank was on the red line, and would collapse soon.
“The petitioners’ appeal is allowed to the extent that the respondent may proceed with its enforcement proceedings against the petitioners through its delegated authority under Section 11A(1) and or Section 14(1) of the CMA Act,” Justices David Maraga (chief justice), Mohamed Ibrahim, Smokin Wanjala, Njoki Ndung’u and Isaac Lenaola said.
CMA gets nod to hunt Imperial Bank directors over Sh2bn bond
Tuesday December 15 2020
By SAM KIPLAGAT
Summary
The Supreme Court agreed with the regulator that it has rights to investigate circumstances under which the bank proceeded with the bond despite insider knowledge it was in trouble.
Imperial Bank was placed under receivership in October 2015 after the board of the privately owned lender alerted authorities to suspected malpractices.
Imperial Bank went under with the Sh2 billion in bonds, whose sale to the public had been cleared by the CMA, leaving investors bruised.
The Capital Markets Authority (CMA) has received the green light to pursue the directors of collapsed Imperial Bank over the Sh2 billion corporate bond that the lender issued a month before it was placed in receivership.