The move by the markets regulator to go after suspected dirty deals in Treasury bonds transactions is a step in the right direction.
We, however, also expect the Capital Markets Authority to expand its investigation so as to smoke out the first and second parties involved in the shady transactions as their actions threaten the integrity of a process integral to public finance.
This is because the third party can only act with insider information, which facilitates front running of the market.
Coming after Kenya in 2012 witnessed a similar scandal involving Tsavo Securities where its head was slapped with a 15 year ban from acting for any listed firm, those found culpable must be punished. Trading on insider information not only flies in the face of the laid down procedures, it also distorts the true market for those willing to play by the rules.
Although the CMA says investigations are yet to be concluded, it is our sincere hope that when all facts are laid on the table, the guilty party will receive commensurate punishment for in there lies the future of trading in government papers.
There also needs to be in place a mechanism for detecting fraud early enough to ensure that only those willing to play above the table get the chance to do.