Kenol Kobil chief executive David Ohana has been excused in the on going insider trading investigations at the company after he voluntarily cooperated with the Capital Markets Authority (CMA).
In a court document seen by Kahawa Tungu, Ohana apparently consented to the raid that happened on January 30 and takes “no issue in the manner in which the orders were sought, granted and executed against him…”
On the material day, CMA officers seized personal ICT devices; Mobile phones, laptops, and Desktop computers.
He allegedly erased text messages and call logs just hours before detectives raided his office.
“It is the belief of the applicant that considering that it has been possible to successfully extract information from all other devices whilst it has not been possible to extract information from the electronic devices under paragraph 4 above, deliberate efforts may have been made to update, programme and/or calibrate the said devices with the objective of frustrating the applicant’s data and information extraction process,” CMA previously told the court.
But in the consent order, Ohana voluntarily gave up his gadgets to CMA and accepts that information derived from the devices may be used against him.
“The 3rd Respondent accepts that any information obtained by the Applicant from the gadgets voluntarily surrendered by him to the Applicant may be used by the Applicant in its investigations against the 3rd Respondent on the alleged insider trading on the Kenol Kobil counter at the Securities Exchange.”
CMA on Thursday suspended trading of Kenol Kobil Plc shares until March 11, 2019.
Officers are also looking into stock market trader Aly Khan Satchu involvement in the insider trading scheme.
Mr Satchu is believed to have contacted several traders informing them of the Sh35 billion takeover announcement which could have benefited himself, Ohana and Mr Andre DeSimone, the chief executive of stock-brokerage firm Kestrel Capital.
“All shareholders, investors and the general public are asked to take note of the suspension,” the Nairobi Securities Exchange (NSE) said in a statement.