RBA stopped from delisting CPS Financial Services

September 12, 2014
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Justice Isaac Lenaola issued an order restraining RBA from calling for forensic inspections of LAPT, pending the hearing and determination of the petition before the court
Justice Isaac Lenaola issued an order restraining RBA from calling for forensic inspections of LAPT, pending the hearing and determination of the petition before the court

, NAIROBI Kenya, Sept 12- The Retirement Benefits Authority (RBA) on Friday suffered a setback after the High Court stopped it from interfering with operations of CPS Financial Services limited and Local Authorities Pensions Trust (LAPT).

This was after Justice Isaac Lenaola issued an order restraining RBA from calling for forensic inspections of LAPT, pending the hearing and determination of the petition before the court.

The judge directed that the application be served for hearing on 29 September.

LAPT through its lawyer Donald Kipkorir had moved to court under certificate of urgency seeking leave to quash the decision of RBA asking for certificate of registration held by the Financial Service Company for destruction.

The lawyer urged the court to issue an order prohibiting the agents of RBA from effecting the decision made against the applicants. He told the court that the RBA’s decision to deregister CPS Financial Services is arbitrary and made in bad faith.

They heard that the pension fund has thousands of municipals and county government employees who stand at risk to lose their benefit if the decision of RBA is acted upon.

“The financial service is an administrative body tasked with administration of pension fund scheme subject to the provisions of the retirement Act,” he told the court.

Meanwhile, CPF Financial Services Group Managing Director Hosea Kili in a statement explained that the institution, “has and continues to uphold impeccable standards and thus follows due process in all its undertakings.”

“We hereby wish to clarify that CPF Financial Services Ltd has not in any way violated the law in regards to the management of retirement benefits for its client schemes and members; that the decision by the Trustees of the Local Authorities Pensions Trust to incorporate the Company was a step towards separation of in-house scheme administration in line with global best practice.”

Kili blamed, “external parties (that) have been feeding our members, stakeholders and the public with misleading information on the legality of our existence.”

He says the said reports have been generated by competitors who want to influence the minds and views of the public on the pension scheme.

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