A report released by the Capital Markets Authority (CMA) yesterday has revealed the extent of the allegations by the regulator against former directors of CMC Holdings Ltd, the publicly listed motor dealer.

In the report prepared by the Board of the CMA, directors Henry Forster, Jeremiah Kiereni, Charles Njonjo, Peter Muthoka, Joseph Kivai, Richard Kemoli, Andrew Hamilton, Sobakchand Shah, Joel Kibe, Paul Ndung’u, Ashok Shah, William Lay and Mary Ngige are implicated as having failed in their directorship either individually or collectively to various extents.

The highest allegations of misconduct are placed against Mr. Peter Muthoka who is the former CMC Chairman. Among other things, he is accused of having “…breached the Capital Markets (Take-over and Mergers) Regulations, 2002 by holding more than 25% shares of a listed company...”. Mr. Muthoka is the single largest shareholder of CMC with a 24.72 percent stake.

Several allegations are also placed on Mr. Charles Njonjo Henry Forster, and Richard Kemoli. According to a report in the Business Daily, Mr. Kemoli also holds director positions in Bamburi Cement, Unga Group, East African Breweries Ltd and Kakuzi which are all publicly listed companies.

The report also reveals the CMA’s regulatory actions against the said directors based on their offences. Of the thirteen implicated directors, seven are unanimously disqualified from becoming directors of any publicly listed company in Kenya including Mr. Forster, Mr. Kiereni, Mr. Njonjo and Mr. Kemoli.

Irregularities in the corporate governance of CMC first broke in September last year when the CMA received notification that Mr. Joel Kibe had been appointed the Board Chairman to replace Mr. Muthoka, revealing conflict of interest and fraud taking place in the company’s board and management.

In light of an emerging scandal, shares in the motor dealer were suspended from trading on September 16^th last year pending further investigation and have not traded since.