Former Uchumi directors challenge CMA ban on holding board posts
Former Uchumi Chief Finance Officer Chadwick Omondi Okumu has moved to court to challenge the decision by Capital Markets Authority (CMA) that blocks him from sitting on the board of a publicly listed company for a period of two years.
Mr Okumu argues the decision by CMA is in breach of his constitutional rights adding that the sanctions imposed by CMA have a serious effect and will affect his livelihood.
In the petition, the former CFO said that he performed his duties until June 15 when he received an SMS that he relieved of his duties from Uchumi.
“I was thereafter served by CMA with a notice to Show Cause dated 31st August 2016 with regards to various allegations made against me,” reads the petition.
He further says that he responded to the various allegations in the Notice to show cause on the 13th of September this year.
In his affidavit, the former Uchumi finance boss said that during the hearing before the CMA board he was denied vital information.
Uchumi Supermarkets board sent him packing in June last year alongside Chief Executive Officer Jonathan Ciano for “gross misconduct and gross negligence”.
The CMA order also blocks Mr Okumu from working as a CFO in any publicly listed firm.
Former directors James Murigu, Joyce Ogundo and Bartholomew Ragalo have also filed a similar application against Capital Market Authority.
The applicants herein are not directors of Uchumi Supermarkets Limited and accordingly do not fall within the regulatory ambit of CMA, argues Murigu and Ragalo
The regulator ordered Ragalo to pay the Sh855,000 he earned as a board member.
James Murigu, will be out of the boardroom for one year and was directed to refund Sh660,000 allowances he earned while on the board of Uchumi.