The High Court has mandated financial services group British
American Asset Managers to allow its former managers access of all
relevant information from the company in a case in which they are
charged with theft.
Former managers Edwin Dande,
Elizabeth Nkukuu, Patricia Wanjama and Shiv Arora, who later founded
rival firm Cytonn Investments are facing prosecution over alleged
irregular sums from Britam-affiliated accounts to rival companies.
The four were in 2016 charged with the criminal offence relating to Sh1.1 billion theft by servants.
They had petitioned the court to compel Britam to provide the information regarding to the transactions.
In
a ruling dated February 23, justice Chacha Mwita said that Britam’s
claim that providing access to the information sought will be
prejudicial to their business is unfounded.
“I find the
respondents contention that allowing access will be prejudicial to
their commercial interests unpersuasive given the nature of the
information sought,” ruled the judge.
Some
of the information the four managers have been seeking to buttress
their case include a settlement agreement entered into between BAAM and
Acorn Group and a forensic audit conducted by KPMG on the books of BAAM.
Britam
will also be compelled to provide information on a legal audit performed by Coulson Harney.
The case is one of the biggest disputes in corporate Kenya involving an NSE-listed firm and its former managers.
The
four managers have told the court that they never benefited from the
cash and that the issue had been resolved after Britam and property
development group Acorn and seven of its affiliates reached a
settlement.
The former managers have
claimed that the suit is meant to taint their image, arguing that
although civil suits were filed in the High Court the case has been
settled and the cash involved refunded.
Mr
Dande, now chief executive of investment firm Cytonn, and his team are
accused of wiring Sh1.16 billion out of Britam in five tranches to
multiple accounts held by Acorn at Chase Bank and a further Sh2.78
billion to seven entities that are subsidiaries of Acorn.
BAAM filed suit at High court to recover the cash.
The
former managers have vigorously denied the accusations. The Cytonn
executives defended the transfer of Sh3.9 billion from BAAM’s accounts,
arguing that the said financial transactions were approved by all of
their former employer’s board and top management.
Mr
Dande has filed in court copies of emails and meeting minutes he
insists are evidence that Mr Wairegi and directors of Britam, including
Mr Jimnah Mbaru and Mr Peter Munga, were aware of BAAM’s dealings with
partners and clients.
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