CMA to appeal fraud ruling on former Uchumi chief Ciano – VIDEO
Former Uchumi Supermarkets chief executive Jonathan Ciano is not off the hook after the Capital Markets Authority (CMA) appealed a decision to free him of fraud charges over a flawed Sh895 million cash call in 2014.
The CMA has filed notice of appeal seeking to overturn Justice George Odunga’s verdict mid last month that found Mr Ciano had been taken through a faulty disciplinary process.
He said the regulator had not furnished Mr Ciano with the required information in time to enable him prepare for his defence.
The CMA had based its charges on a forensic audit report by KPMG, which found Mr Ciano and his wife were among Uchumi’s largest vegetable suppliers.
“The Capital Markets Authority being dissatisfied with the decision of the honourable Judge…intends to appeal to the Court of Appeal against the whole said decision,” states a notice filed on April 24.
The regulator had hit Mr Ciano with a Sh5 million penalty for the loss that his actions were deemed to have caused shareholders and sought to seize some Sh13.5 million as proceeds of crime because he failed to declare a conflict of interest to the Uchumi board.
Other cases that CMA have lost are against James Murigu, Bartholomew Ragalo and Joyce Ogundo, all former Uchumi directors.
Justice Odunga in January ruled that the three petitioners were charged with an illegality that did not exist in the CMA Act, but the regulator issued the trio with a fresh Notice to Show Cause Letters.