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- Jul 3, 2016
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Former CMC Motors finance director Sobakchand Shah has asked the High Court to dismiss the Capital Markets Authority’s application for stiffer penalties against him for his role in the 2012 financial scandal in the company, arguing that he has been punished enough.
Mr Shah says in court filings that his disqualification from holding directorship in any public listed company and the Institute of Certified Public Accountants of Kenya’s (ICPAK) Sh70,000 fine was enough punishment for his role in the scandal that nearly brought down the motor firm.
Mr Shah was punished by the capital markets regulator alongside former CEO Martin Forster, ex-Attorney General Charles Njonjo and businessman Jeremiah Kiereini.
The CMA argues that ICPAK’s penalty on Mr Shah was not commensurate with his misconduct as CMC’s finance director.
The CMA further filed a complaint against Mr Shah before the ICPAK, seeking stiffer penalties for the former finance director.
It also wants audit firm Deloitte found culpable for failing to disclose the existence of illegal offshore accounts the motor dealer’s directors ran in Jersey. Mr Shah now says the CMA should not be allowed to pursue further sanctions against him.
He insists that the capital markets regulator has not produced any evidence that was not considered in the ICPAK disciplinary committee hearings.
“The CMA has not placed before court information it had that was not before the committee. If the CMA knows something which the committee did not but should have known, the CMA should have tendered it as evidence before this court. Mr Shah has a right to earn a living and maintain the standard of living he is used to. I do not understand why the CMA is hounding him more,” says Amritlal Shah, the former CMC director’s lawyer.
The CMA has enjoined audit firm Deloitte in the suit, claiming that the ICPAK virtually left it off the hook for misconduct. It claims the auditors should have reported the fraud at CMC.
I have suffered enough for role in scam, ex-CMC boss tells court
Mr Shah says in court filings that his disqualification from holding directorship in any public listed company and the Institute of Certified Public Accountants of Kenya’s (ICPAK) Sh70,000 fine was enough punishment for his role in the scandal that nearly brought down the motor firm.
Mr Shah was punished by the capital markets regulator alongside former CEO Martin Forster, ex-Attorney General Charles Njonjo and businessman Jeremiah Kiereini.
The CMA argues that ICPAK’s penalty on Mr Shah was not commensurate with his misconduct as CMC’s finance director.
The CMA further filed a complaint against Mr Shah before the ICPAK, seeking stiffer penalties for the former finance director.
It also wants audit firm Deloitte found culpable for failing to disclose the existence of illegal offshore accounts the motor dealer’s directors ran in Jersey. Mr Shah now says the CMA should not be allowed to pursue further sanctions against him.
He insists that the capital markets regulator has not produced any evidence that was not considered in the ICPAK disciplinary committee hearings.
“The CMA has not placed before court information it had that was not before the committee. If the CMA knows something which the committee did not but should have known, the CMA should have tendered it as evidence before this court. Mr Shah has a right to earn a living and maintain the standard of living he is used to. I do not understand why the CMA is hounding him more,” says Amritlal Shah, the former CMC director’s lawyer.
The CMA has enjoined audit firm Deloitte in the suit, claiming that the ICPAK virtually left it off the hook for misconduct. It claims the auditors should have reported the fraud at CMC.
I have suffered enough for role in scam, ex-CMC boss tells court
