CMA seeks whistleblower help to rein in rogue directors, brokers
Capital Markets Authority chief executive Paul Muthaura. PHOTO | FILE
The Capital Markets Authority (CMA) is seeking help from whistleblowers to rein in rogue traders, brokers and company directors at the stock markets.
Some of the market irregularities that the authority seeks to curb with the help of insiders include share price manipulation, insider trading and falsification of financial statements exposing investors to huge losses.
The regulator has launched a portal, to be accessed through its website, that will give whistle blowers an opportunity to share anonymous but verifiable evidence with the regulator.
“This helps ensure that market confidence can be strengthened and failures in integrity are responded to in a timely manner” said CMA’s chief executive Paul Muthaura.
The regulator is also in a legal battle with directors of Imperial Bank and CMC Motors over falsification of financial statements.
Besides Imperial Bank, other companies whose financial statements have come under doubt include Uchumi Supermarkets, Mumias Sugar and Chase Bank which collapsed having issued a corporate bond.
In its recent report the regulator cited one case of price manipulation by Henry Ngati Nugi, whose tradings of Kenya Orchards saw the price rise from Sh11.90 to Sh190 per unit over a three-month period booking him Sh374,926 in capital gains.
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