One of the suspects in the Kenol Kobil insider trading investigations has agreed to cooperate with the Capital Markets Authority (CMA) and will not be challenging the probe in court.
CMA on Thursday told the Nairobi Chief’s Magistrate Court that it has excused Kenol Kobil CEO David Ohana from further proceedings meaning that the investigations will be narrowed down to key suspect Aly Khan Satchu (stock broker) and Kestrel Capital (investment bank) CEO Andre De Simone while the former is likely to be a witness.
“The 3rd Respondent (Mr Ohana) has voluntarily cooperated with the Applicant (CMA) in terms of orders issued on 14 January 2019,”
“The 3rd Respondent accepts that any information obtained by the applicant from the gadgets voluntarily surrendered by him to the applicant may be used by the applicant in its investigations against the 3rd Respondent on the alleged insider trading on the Kenol Kobil counter at the Nairobi Securities Exchange (NSE),” reads a consent notice signed by CMA’s and Mr Ohana’s lawyers.
On Thursday, CMA suspended trading of the oil marketer’s shares until March 11 citing the need to ‘facilitate reconciliation by the offeror’.
“All shareholders, investors and the general public are asked to take note of the suspension,” reads a statement to newsrooms by NSE.
CMA has accused Mr Satchu of tipping off investors on the lucrativeness of Kenol Kobil shares ahead of its takeover by French energy firm Rubis Énergie S.A.S demanding Ksh500 million from the investors once they sold the shares to the Paris headquartered firm.
According to forensic evidence gathered by data recovery firm East Africa Data Handlers on behalf of the authority presented before the court, Mr Satchu tipped off the investors one week before the takeover was announced on October 23, 2018.
Deleted text messages retrieved from his phone seized by CMA indicated that Mr Satchu was in constant communication with Kestrel Capital (investment bank) CEO Andre De Simone and Mr Ohana over trading of the oil marketer’s shares.