Former National Bank managing director Munir Sheikh Ahmed. PHOTO | FILE
By DAVID HERBLING, hdavid@ke.nationmedia.com
In Summary
- Companies listed at the NSE are required to notify the public and the CMA of all material information - such as executive changes, profit alerts – within 24 hours of their occurrence.
- The CMA on April 8, 2016 disclosed that it had fined National Bank an undisclosed amount for failing to publicly issue a profit alert ahead of announcing a loss.
Troubled lender National Bank
is once again on the spot for belatedly reporting the exit of its chief
executive and two other senior managers without notifying the capital
markets regulator and the investing public within 24 hours as required
by law.
Munir Sheikh Ahmed, the bank’s suspended chief executive,
last week revealed that he left National Bank’s corner office on April
13, 2016, a fortnight after he was sent on compulsory leave along with
five other senior executives.
National Bank on Friday sent a notice to the
Capital Markets Authority (CMA) and the Nairobi Securities Exchange
(NSE) notifying them of the management changes - more than a week after
Mr Ahmed had left.
National Bank’s regulatory filing, made public on
Monday, also says the bank’s chief finance officer, Chris Kisire, and
executive director in charge of corporate institutional and business
banking, Boniface Biko, had left.
Companies listed at the Nairobi bourse are
required to notify the public and the CMA of all material information -
such as executive changes, profit alerts – within 24 hours of their
occurrence.
“An issuer shall disclose all material information …
within 24 hours of the happening of the event,” the CMA regulations
state. This is the
second time in less than a month that NBK is breaching listing regulations, having reported a Sh1.15 billion full-year loss without prior warning to investors as is provided by law.
second time in less than a month that NBK is breaching listing regulations, having reported a Sh1.15 billion full-year loss without prior warning to investors as is provided by law.
The CMA on April 8, 2016 disclosed that it had
fined National Bank an undisclosed amount for failing to publicly issue a
profit alert ahead of announcing a loss.
National Bank declined to comment on this story and
the mid-sized lender also refused to confirm the exact date it sacked
Mr Ahmed.
“I’ve exited. It was a sack. Suspension was a nice
way of putting it,” said Mr Ahmed last Friday in an exclusive interview
with the Daily Nation.
Mr Ahmed regretted that the public sector does not
reward performance, noting he had helped the bank diversify its
products, cut expenses to improve cost to income ratio, grow balance
sheet and use technology to improve operations.
“I took up this job with a lot of enthusiasm. But
I’ve now established that doesn’t work well in public sector. It creates
a lot of enemies,” said Mr Ahmed who took over the bank on August 1,
2012.
Wilfred Musau, the bank’s director of retail and
premium banking, is now acting managing director of the bank pending
fresh recruitment of a CEO.
Kenya’s capital markets regulator Monday said it
was duly notified of the executive changes at NBK last Friday and was
seeking proof that there was a one-week delay in making public the
notice.
“We would welcome any evidence that may be in your
possession that would suggest the above referenced notice of changes in
management was lodged out of time to inform appropriate action by the
authority,” CMA said in response to queries from the Business Daily
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