CMA fines ex-Chase Bank bosses and Deloitte over bond issue – Kenya Broadcasting Corporation
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The Capital Markets Authority (CMA) has fined former board members and senior managers of Chase Bank and its Reporting Accountant Deloitte and Touche over their role in the issuance of a Ksh 10 billion bond in 2015.
Former Chase Bank Group Managing Director Duncan Kabui has been fined Kshs. 5 million and disqualified from being a director or key personnel of a company regulated by the Capital Market Authority for 10 years while Deloitte has been fined Ksh 10 million.
In 2015, Chase Bank sought approval from the CMA to issue a medium-term bond for Kshs. 10 billion.
The approval was granted and the lender raised Kshs. 4.8 billion in the first tranche which was listed in June 2015.
The following year, Chase Bank was placed under statutory management by the Central Bank of Kenya after experiencing liquidity issues that saw it fail to meet its financial obligations.
This led to the suspension of trading in the Chase Bank Bond in April 2016. In the same year, CMA launched investigations into the matter to establish any possible capital markets regulatory infractions that might have led to the collapse of the lender.
CMA says after concluding investigations, the regulator has penalized three former Chase Bank executives, five board members, and reporting Accountant Deloitte over their role in the issuance of the medium-term bond.
Former CEO Paul Njaga has also been fined Ksh 5 million while the former finance director has been handed Ksh 5 million fine and a five-year ban from participating in the Kenyan capital market.
The authority has also fined three former board members Ksh 2.5 million each while Richard Carter, another board member has been fined Ksh. 1 million.
CMA has further, recommended that the conduct of the accounting partners during the respective audit periods be referred matters be taken up by ICPAK.
Watch what’s live now on KBC Channel 1 and our other TV Stations. Never miss new episodes from your favorite shows, reruns and movies. Stream online for free today.
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