Court stops former CMC boss from selling shares

Former CMC Holdings chairman Jeremiah Kiereini. The Capital Markets Authority has obtained orders stopping Mr Kiereini from selling his shares in any company listed in the Nairobi Stock Exchange. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• The authority moved to court after conducting investigations into CMC affairs and establishing that Mr Kiereini might have benefited from funds siphoned off-shore estimated at Sh63 million.
• In August last year, Mr Justice David Majanja of the High Court overturned CMA’s decision to bar Mr Kiereini from holding any directorship position in a listed company, stating that the ban violated his constitutional rights.

By NATION CORRESPONDENT
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The Capital Markets Authority has obtained orders stopping former CMC Holdings chairman Jeremiah Kiereini from selling his shares in any company listed in the Nairobi Stock Exchange.

The orders, granted by High Court judge Francis Gikonyo on submission by CMA that Mr Kiereini was actively transferring or selling his shares and the ones he indirectly owns through his companies in the listed companies to defeat justice.

“CMA became apprehensive that massive sales of shares were a bid by Mr Kiereini to frustrate its intentions to take action against him, based on the investigation reports conducted by Webber Wenztel and the recommendation of the Ad hoc Committee of the CMA Board,” the regulator told the court.

BENEFITED FROM FUNDS SIPHONED OFF-SHORE

The authority moved to court after conducting investigations into CMC affairs and establishing that Mr Kiereini might have benefited from funds siphoned off-shore estimated at Sh63 million.

The regulator is demanding from Mr Kiereini and his companies, Kingsway Nominees Ltd and Kingsway Family Holdings Ltd, a total of Sh189 million, being the total sum recoverable.

In August last year, Mr Justice David Majanja of the High Court overturned CMA’s decision to bar Mr Kiereini from holding any directorship position in a listed company, stating that the ban violated his constitutional rights.

“I declare that the petitioner’s rights under Article 47(1) of the Constitution were violated by the Capital Markets Authority when it took enforcement action against him,” Justice Majanja had said.

CMA moved to the Court of Appeal to challenge the decision.