NAIROBI, Kenya, Apr 5 – The Capital Markets Authority has fined former National Bank of Kenya Chief Executive Munir Sheikh Sh5 million for his role in the ‘ineffective management of the bank.’
CMA has also banned Sheikh from holding board position in a public listed company or working for a licensed entity for three years.
In a statement, the regulator has also fined Chris Kisire, the former CFO of National Bank, Sh1 million for his role in the alleged embezzlement of Sh1 billion.
“The main allegations in National Bank enforcement proceedings were in respect of misrepresentation of financial statements for the periods ended 30th June 2015 and 30th September 2015 where profits were overstated,” says the CMA.
Wycliffe Kivunira (former acting CFO), Solomon Alubala (Former Head of Treasury), Boniface Biko (Former Director Corporate & Institutional Banking) and Dennis Chumbe (former relationship Manager Business Banking) were investigated.
“We have fined Solomon Alubala Sh104.8 million being 2 times the amounts so far traced into his hands from embezzled funds. We sought restriction on two properties associated with him, purchased with the embezzled funds,” says the regulator.
According to CMA, the alleged embezzlement happened through a deposit mobilization program where commissions were paid to private agents for deposits placed by Government agencies in the normal course of business.
“Investigations established that up to ninety percent of the commissions paid to the private agents may have subsequently been transferred back to persons related to NBK.”
CMA has recommended prosecution of some of the senior managers and further criminal investigations of additional individuals.