|
|
Kenya: Collapsed Broker Clings to Licence
 |
 |
|||||||||
|
||||||||||
|
|
|||||||||
|
||||||||||
The East African Standard (Nairobi)
6 May 2008
Posted to the web 6 May 2008
James Anyanzwa
Nairobi
TROUBLED Francis Thuo & Partners brokering firm is still holding firm on its licence despite being insolvent.
According to industry sources, the broker could still claim back its NSE seat auctioned to Renaissance unless the Capital Markets Authority (CMA) revokes its licence.
The regulator, the source said, must immediately appoint a liquidator to overseethe brokerage firm's winding up to avoid rocking the credibility of the market.
The Standard has reliably learnt that the firm's licence was only suspended to allow investigation into its financial position by forensic auditors, a position that still remains even after the broker's seat was auctioned at Sh251 million to Renaissance.
"The firm is actually insolvent and the regulator should think of revoking its seat and licence," the source, who declined to be named for fear of being victimised, told The Standard yesterday.
Francis Thuo & Partners brokerage firm is said to be insolvent to the tune of Sh180 million.
Liquidation refers to the process by which a company or part of it is sold, and the assets and property are redistributed.
Efforts by The Standard to secure comments from the CMA were unsuccessful as the acting CEO, Ms Stella Kilonzo, was out of the office by the time of going to the Press.
The latest development is also bound to raise serious questions on the authenticity of the seat that Renaissance Capital occupies at the Nairobi Stock Exchange (NSE).
The seat was procured from Francis Thuo & Partners after it was found that the brokerage firm was in a financial mess and could not be revitalised.
NSE, through the Francis Thuo and Partners Rescue Plan Board Committee, spearheaded the innovative solution, which entailed the unprecedented creation and auctioning of a new seat on the NSE to raise funds to pay off clients of the collapsed brokerage firm.
Upon its appointment as the Statutory Manager, the NSE proceeded to confirm the liabilities of Francis Thuo & Partners.
|
Although NSE had initially received figures that puts the firm's liabilities at Sh.124 million as provided by officers of the Francis Thuo & Partners, the real verified claims is said to stand at Sh173 million.
The CMA approved the creation and auction of one seat on the Nairobi Stock Exchange whose proceeds was used to service liabilities of the collapsed firm.
Amongst the principal terms and conditions of this approval was that upon conclusion of the statutory management, the Statutory Manager shall submit its final audited report to CMA.
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Copyright © 2008 The East African Standard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Make allAfrica.com your home page | RSS Feed | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Top | Site Guide | Who We Are | Advertising | Search | Subscribe | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Questions or Comments? Contact us. Read our Privacy Statement. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
