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KenolKobil MD David Ohana Quits As Insider Trading Scandal Bites On

Things are getting murkier for Kenolkobil, even as another senior officer resigned this week.

David Ohana, the managing director, quit silently and his successor introduced to staffers this week.

Ohana was left out of legal proceedings by the Capital Markets Authority (CMA) in the scandal that is threatening to sink big names like stockbroking agent Aly-Khan Satchu.

Charges against Ohana were dropped after investigations failed to prove misconduct against him.

In the scandal, shares worth Ksh6.1 billion were traded before the takeover deal by French firm Rubis.

This comes barely a week since Kestrel Capital East Africa CEO Andre DeSimone resigned,in connection to the KenolKobil insider trading scandal.

“The board accepted the resignation and has instructed the company to inform all appropriate authorities, including Capital Markets Authority (CMA), of Mr Desimone’s resignation,” said a statement signed by founder Charles Field-Marsham.

DeSimone is among those implicated in the insider trading scandalthat would see KenolKobil change ownership for Ksh26 billion.

Mr Field-Marsham is also facing similar allegations, in which 14 accounts were flagged by the CMA over irregular practices.

The three might face charges for leaking non-public information to specific traders to buy shares before the buyout. It is illegal for insider traders to leak non-public information or using it to buy or sell securities for personal gain.

Read: CMA To Retain Ksh458 Million ‘Income’ For Insider Trading Suspects In KenolKobil Takeover Deal

In the allegations, Aly-Khan Satchu and co-accused allegedly positioned five investors o gain 53.6 percent of their investment in the buyout, amounting to Ksh455.9 million. The five include Abdul Sheik, Nureen Moledina, Farzeen Jamal, Adrian Tiwari and Anad Radia.

CMA has since announced retention of the amount that would have been earned as profits in the deal.

Charges against KenolKobil CEO David Ohana were dropped after investigations failed to prove misconduct against him.

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Written by Francis Muli

Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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