The High Court of Nairobi has declined the former Nairobi governor, Evans Kidero, a chance to block the Capital Markets Authority (CMA) from poking his accounts in relations to his financial dealings during his 8 years leadership at Mumias Sugar Company Limited as the Managing Director.
In her ruling, the judge handling the case, Justice Hedwig Ong’udi said that Kidero had not provided any evidence that the regulator was acting against the law and had also not indicated how his rights were infringed upon as he had stated earlier.
She said that although the former governor had claimed he was singled out from the rest of the former Mumias board members, he never asked his former colleagues to file an affidavit to seal his claims or testify in court.
“It is clear that the petitioner did not properly and with the required precision demonstrate how these rights were infringed by the second respondent (CMA) herein. He simply quoted the provisions of the Constitution but did not precisely or sufficiently demonstrate by way of evidence how those rights were infringed by the second respondent.” Justice Ong’udi stated.
In march this year, Kidero took an adjuration as the Chief Administrative Secretary (CAS) in the Ministry of Investment, Trade and Industry but has not yet formally assumed. This is because a court order was issued barring all Chief Administrative Secretary (CASs) appointed by president William Ruto from taking over their roles until the matter filed in court is heard and determined.
Kidero had sued former Capital Markets Authority (CMA) boss Paul Muthaura, the regulator, Director of Public Prosecution, Inspector General of Police and Attorney General. In the case he stated that CMA had written to him wanting him to appear to an interview that would be about his time in office as the Mumias managing director.
Kidero told court the interview with CMA auditors did not yield any issue of fraud concerning use of Mumias’ sugar company money.
CMA wrote to Kidero again, informing him that the Directorate of Criminal Investigations was to investigate his personal bank accounts dating from 2006 to 2016.
Kidero argued that section Section 11(3) of the Capital Markets Act is unconstitutional for giving the regulator sweeping powers to investigate any person without giving them prior notice.
Kidero claimed that the probe was maliciously planned to harass and intimidate him where Muthaura and CMA urged the court to dismiss the case.
In his affidavit, Muthaura said while interrogating the company’s bank statements for the period from March 2010 to May 2012, they noted suspicious and substantial cash inflows from customers who had received the excessive discounts.
Muthaura through the help of the DCI requested for a court order which was to allow them to search account numbers 0803464006/3000049902 under the name of Samson Peter Otieno Hongo at Prime Bank Limited.
The investigation further revealed that Hongo received cash and cheque deposits from its customers such as YH Wholesalers which had received discounts totaling Sh1.6 billion.
