Nyaga stockbrokers clients to get refund

May 14, 2008

, NAIROBI, May 12 – Former clients of the now defunct Nyaga Stockbrokers could receive compensation for any losses next year, according to the Statutory Manager Wycliffe Shamiah.

The process has been divided into three phases with the current stage of lodging complaints having been extended to the June 9.

“The second phase will be to review and assess the claims because you know obviously some of these claims may not be genuine,” Shamiah said.

“This is actually why we did not want to combine both phases.”

He stated that only 4,000 out of the 32,000 applications already processed by the joint statutory managers were claims.

“When I talk of claims there are several categories of claims; there are people who are saying they had my money, others saying they sold my shares without authority and some claiming refunds of IPO’s,” he said.

Shamiah added that the rest of the claims were requests for transfers, and numbered about 28,000.

Out of the 124,000 Central Depository System (CDS) accounts so far accessed by the statutory managers only 69,000 are active, 31,000 are inactive and 24,000 are not operational.

“Of course arising from what I mentioned earlier we are not valuing the claims now; we will do a forensic audit first to be able to value the claims and not pay any fraudulent ones,” he added.  

Shamiah said that by Friday last week the joint statutory managers had already approved transfers of 24,000 CDS accounts from Nyaga to other members of the Nairobi Stock Exchange or other Central depository agents.

Meanwhile, Statutory Manager and NSE Chief Executive Chris Mwebesa has reiterated that the June 9 deadline for the lodging of claims would not be extended.

Mwebesa said the Nation Centre offices and Thika branch of Nyaga stockbrokers (under statutory management) would be closed to clients.

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