Former NBK treasury head’s Sh104m fine suspended

Former National Bank of Kenya managing director Munir Ahmed
Former National Bank of Kenya managing director Munir Ahmed. FILE PHOTO | NMG 

Former National Bank of Kenya (NBK) head of treasury Solomon Alubala got reprieve after the High Court restrained the Capital markets Authority from fining him Sh104.8 million pending determination of his case.

Justice Pauline Nyamweya further directed the Capital markets Authority (CMA) to inform Assets Recovery Authority (ARA), which has been approached by the regulator to help recover the cash, of the court order suspending recovery or demand of the fines.

Mr Alubala argues that the CMA’s decision imposing a fine on him and also banning him from holding office in listed companies for up to 10 years over a multimillion-shilling scandal at the listed bank has put in jeopardy his future.

“The prayer for stay in the applicant’s chamber summons dated June 20 2018 is allowed only to the extent of the leave granted to commence judicial review proceedings shall operate as a stay of the payment and/or recovery imposed upon the applicant,” ruled Justice Nyamweya.

The judge said the taking into account the amount of penalty imposed Mr Alubala is likely to suffer irreparable hardship in the event that enforcement of the penalty or recovery is allowed to proceed.

Mr Alubala was fined in April alongside seven other former senior executives of NBK over alleged cooking of books and theft of more than Sh1 billion from the lender.

He said the role of investigations, prosecution and jury was performed by the same individuals which raised likelihood of bias and improper influence.

But in its response the CMA defended its decision, revealing that it had frozen Mr Alubala’s assets as part of ongoing investigations.

CMA further produced a letter it sent to the Assets Recovery Authority (ARA).

in which it reveals that it has identified assets belonging to Mr Alubala and placed restrictions on at least one.