CMA Proceeds with Sanctions Against Real People Ex-Directors Over Ksh 1.6 Billion Bond Fraud

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The Capital Markets Authority (CMA) is taking decisive action against former and current directors of Real People Kenya Ltd (RPKL) for their involvement in the misappropriation of proceeds from a Ksh 1.6 billion bond issued nearly a decade ago. Here are the key details:


1. Background:

   - Real People Kenya Ltd (RPKL) raised Sh1.6 billion in 2015 from Kenyan investors through a bond issuance.


   - The funds were intended for issuing loans to local customers.


2. Allegations:

   - CMA's investigations revealed that the directors allegedly violated provisions of the Code of Corporate Governance Practices for issuers of securities to the public (2015) and the Capital Markets Act.


   - The bulk of the raised money was wired to RPKL's parent company in South Africa to pay an internal loan, diverting it from its intended purpose.


3. Sanctions and Proceedings:

   - The Capital Markets Tribunal rejected an appeal by four ex-directors—Norman Ambunya, Daniel Ohonde, Nthenya Mule, and Charl Kocks—seeking to block CMA's Ad Hoc committee from proceeding with disciplinary hearings.


   - Yvonne Godo, a current board member, is also facing CMA sanctions related to her role in the scandal.


   - The tribunal's ruling on June 5, 2024, upheld the continuation of proceedings and ordered the appellants to bear the costs.


4. Corporate Governance Breaches:

   - The directors are accused of breaching corporate governance standards and the law.


Despite their attempts to halt the process, the CMA remains committed to ensuring accountability and transparency. The case serves as a reminder of the importance of ethical financial practices. 🌟💼


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