Cytonn Investments Ltd has vilified Capital Markets Authority (CMA) for blaming the judicial system for “frustrating” their mandate.
Appearing before the National Assembly Finance and National Planning Committee on Thursday, CMA CEO Wyckliffe Shamiah said the courts were getting in the way of their work.
“Investigations have been done by us and even DCI. However, I have an order, which says you can’t take any action on Cytonn,” he told the Gladys Wanga-led committee.
Shamiah claimed that the courts have reversed actions the authority has taken, adding that they need protection.
“We are nearly auctioned through actions, which we take in good faith. I think we need protection,” added Shamiah.
But according to Dande, Shamiah was taking the legislators for a ride and was wrong for taking the populist route of blaming the courts.
Dande castigated the authority’s head for issuing “illegal directives” and when taken to court, declined to show up to defend himself.
“Some agencies want to operate like we are still in the Kanu era… You can’t suggest anything. You can’t question anything. No due process. It’s like Article 47 is suspended,” complained Dande.
“…When challenged in court, they have no leg to stand on so they take the easy and populist route of blaming the courts. My friend, orders are extremely hard to get, you must make your case clearly and in most cases interpartes. Stop misleading the public!”
On June 30, Cytonn obtained conservatory orders against CMA following a petition filed in the High Court seeking an interpretation of the law on private offers in the money market.
This was following a tussle between Cytonn and the Capital Markets Authority (CMA) over Cytonn’s two unregulated offers in the capital market, the Cytonn High Yield Solution (CHYS) and Cytonn Private Notes (CPN).
The court barred CMA and the Directorate of Criminal Investigations (DCI) from probing or suing Cytonn Investments over the two products.
In the suit, Cytonn also accused the regulator of acting in bad faith on a product that CMA was part of naming.
Cytonn argued that the constant public statements by CMA against Cytonn put at great risk Ksh20 billion worth of investments by 30,000 Kenyans managed across various portfolios.
“While we do not understand the intention, we request that the numerous, incessant and unnecessary harassment of the Cytonn brand ought to end. You continue to disseminate nearly quarterly briefings, which make it hard to operate, erodes investor confidence and jeopardizes investor funds,” said Dande.
MPs are set to form an inquiry into Cytonn and other entities through which Kenyans have allegedly lost billions of shillings.