CMA is proceeding with sanctions against real people who were ex-directors over a bond fraud of Ksh 1.6 billion.
The Capital Markets Tribunal has denied an appeal by four former directors of Real People Kenya Ltd. (RPKL) to halt Capital Markets Authority (CMA) disciplinary proceedings.
This decision allows CMA’s Ad Hoc committee to move forward with hearings on the alleged diversion of funds from a Ksh 1.6 billion bond issued nearly a decade ago.
The tribunal’s ruling, delivered on June 5, 2024, upheld the continuation of proceedings and ordered the appellants to bear the costs.
Norman Ambunya, Daniel Ohonde, Nthenya Mule, and Charl Kocks, along with current board member Yvonne Godo, are facing sanctions for purported breaches of corporate governance and the Capital Markets Act.
The tribunal deemed their attempts to block the disciplinary process without merit.
According to CMA investigations in 2015, Real People’s South African parent company received funds raised from Kenyan investors instead of using them for local purposes.
This revelation has entangled nine former executives, comprising both Kenyan and South African nationals, in legal scrutiny.
Previously, CMA fined four other former Real People directors a total of Ksh 15 million for their involvement in the diversion.