CMA decries orders stopping forensic audit probe

Written By: Carol Njenga

CMA decries orders stopping forensic audit probe

The Capital Markets Authority (CMA) says conservatory orders obtained by three former Mumias Sugar Company senior managers stopping it from investigating their bank accounts is hampering the forensic probe into the financial and governance operations of the miller.

In a statement, the CMA says conservatory orders by the court have hampered investigations in 56 out of 85 bank accounts under inquiry.

The tussle between three former Mumias Sugar Company managers and the Capital Market Authority began in 2015 after the latter began investigating sugar miller’s financial and governance issues.

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Being a listed company, CMA conducted a forensic investigation and based on the preliminary report, the authority initiated several enforcement actions last year against three former senior managers after dropping a former board member’s case who satisfactorily answered to the allegations raised in the notice to show cause.

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The CMA says the other three moved to court to stop the Authority from investigating their bank accounts.

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In a statement, Capital Markets Authority says the conservatory orders obtained by three senior managers stopping the ongoing investigations into their bank Accounts until their petitions questioning the legality of the warrants are heard and determined is hampering conclusion of the forensic audit.

CMA says: “The conservatory orders issued against the Authority have hampered investigations by stopping investigations in Fifty-six (56) out of eighty-five (85) bank accounts under inquiry.”

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The authority says it is following up with various banks in order to receive bank statements of 29 accounts that are not subject to any court order.

The forensic auditors have been reviewing the financial and governance operations at Mumias Sugar Company for ten years between 2006 -2016.


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