CMA freezes accounts by women incubator WIIE in irregularity probe
Published on: September 02, 2019 05:52 (EAT)
The Capital Markets Authority (CMA) has alongside law enforcement agencies frozen bank accounts belonging to the Women Investing in Entrepreneurship (WIIE) incubator. The action is part of an ongoing inquiry by the capital markets regulator on the nature and features of raising capital by the company which mimics those of a regulated activity but not approved by the CMA. “The Authority noted discrepancies in the information provided in the firm’s website and the information given to the Authority by WIE Limited in relation to its operations,” noted the CMA in a statement on Monday. According to preliminary investigations by the market’s regulator, the company has been raising money from the public through a public offer of shares to women. “WIE Limited business model furthermore seems to have been endorsed by various women celebrities in the country in a bid to lure more women investors,” CMA Chief Executive Mr. Paul Muthaura added. Further to the freeze on accounts, the CMA has cautioned the public against participating in any capital raising or public offer of shares by the company. WIIE which champions itself as the future of wealth creation for women on its website is linked to Tess Kariuki and Wanjiru Macharia. Prior media reporting has established the two have been running a large scale social media campaign pegged on raising share capital ahead of launch this month. A further look into the operations of the company point towards the direction of sinister ends with the lure sealed on an account of seemingly unrealistic return on equity. “Take two hours of your time to find out how to convert Ksh.10,000 investment into Ksh,1,000,000 per annum in earnings by investing in WIIE as a shareholder,” reads one of the company’s brochure to clients.