The Capital Markets Authority (CMA) says its whistleblower portal launched in July is yet to receive any compliance breaches such as fraud.
The Kenya Revenue Authority has also announced plans for an online integrity gathering system for whistleblowers to report tax cheats.
The CMA is engaged in a legal battle with directors of collapsed Imperial Bank and troubled CMC Motors.
Kenyan investors have snubbed a government-backed online portal for whistleblowers to report wrongdoing in the capital markets, which has so far not received any tips one year down the line.
The Capital Markets Authority (CMA) says its whistleblower portal launched in July is yet to receive any compliance breaches such as fraud, saying there are plans to introduce a rewards scheme for those who provide information that leads to successful nailing of culprits or seizure of assets.
“The authority is yet to receive tips through the portal. We are confident that increased use of the portal will go a long way in helping address market place issues to protect the integrity of the capital markets,” the CMA told the Business Daily.
“We have not rolled out a reward scheme for whistle blowers but this is under consideration by the authority,” said the regulator.
The regulator will be following in the footsteps of the American Informant Award, where the US tax agency rewards those who blow the whistle on tax cheats with up to 30 per cent of what is collected from a tipoff.
The Kenya Revenue Authority has also announced plans for an online integrity gathering system for whistleblowers to report tax cheats.
The CMA was banking on the online portal to promote investor confidence in markets by arresting irregularities such as share price manipulation, insider trading, cooking financial statements, breach of governance code and theft.
The markets regulator said it plans to carry out public awareness on the portal.
The online channel is not interlinked with other government agencies but the CMA said reports received will be forwarded to the Capital Markets Fraud Investigation Unit for an in-depth probe.
There are a number of unresolved scandals involving companies listed on the Nairobi Securities Exchange or those that have floated bonds at the bourse.
The CMA is engaged in a legal battle with directors of collapsed Imperial Bank and troubled CMC Motors #ticker:CMC.
The regulator argues that Imperial Bank directors breached their fiduciary duty by misstating undisclosed facts ahead of selling the ill-fated Sh2 billion bond to the public.
