Treasury revives CMA’s whistleblower pay plan – Business Daily
The National Treasury building in Nairobi on Sunday, May 24, 2020. PHOTO | DENNIS ONSONGO | NMG
The Treasury has reintroduced regulations in Parliament that will earn whistleblowers who leak capital market fraud up to Sh5 million as the State moves to stop economic crimes.
The Capital Markets (Whistleblower) Regulations 2022, which outline how the rewards will be implemented is now before the Committee on Delegated Legislation for consideration.
The rules were published in June when the life of the 12th Parliament had ended. They seek to enforce provisions of the Capital Markets Act, which provide that the CMA may reward any person who provides new and timely information leading to the recovery of sums of money that are paid into an Investor Compensation Fund.
Section 18(2A) of the CMA Act allows the capital markets regulator to pay three percent subject to a maximum of Sh5 million of the amount recovered by the CMA following enforcement action before the funds are paid into the investor compensation fund. The balance of the recovery will be transferred and held in the investor compensation fund. An informer will get compensated after 90 days upon repossession of the sums.
The Statutory Instruments Act, 2013 requires all regulatory-making organs to table in the House within seven days of publication of legal notices or regulations having the force of law for approval.
“The Act empowers the authority to reward whistleblowers and requires the Cabinet Secretary to develop regulations on the implementation of Whistleblower rewards,” said Treasury CS Ukur Yatani in a memorandum accompanying the regulations.
He said the rules seek to enhance investor protection and integrity in the conduct of business of companies and market intermediaries in order to enhance stability of the capital markets.
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