This archive report was first published on 1 August 2019.
On August 1, 2019, the High Court quashed a Sh5 million fine and a three-year ban on former National Bank of Kenya managing director Munir Sheikh Ahmed for cooking of books and theft.
Justice Pauline Nyamweya found that Mr. Munir had contravened several sections of regulations, including failing to prepare interim accounts and quarterly accounts in line with International Financial Reporting Standards (IFRS).
However, the judge also found that Mr. Munir failed to supply the board with relevant, accurate, and timely information to enable the board to discharge its duties.
The Capital Markets Authority (CMA) had fined eight former senior executives of National Bank millions of shillings and banned them from holding office in listed companies for up to 10 years over cooking of books and theft of more than Sh1 billion from the lender.
Mr. Munir argued that the penalty and decision to bar him from holding office as a key officer of a public listed company was arrived at erroneously.
The regulator wrote Mr. Munir a letter in August 2017 over misrepresentation of the financial statements for the period ended June 30, 2015.
The misrepresentation of financial statements was linked to a premature recognition of sale of assets amounting to Sh800 million, under-provisioning for loans, and wrongful recognition of interest income leading to an overstatement of profit in the respective periods.
