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Government and Policy

Why Does Cytonn Want Wycliffe Shamiah Gone Like Yesterday?

BY Juma · August 18, 2021 08:08 am

KEY POINTS

The war between the Capital Markets Authority and Cytonn Investments is on. The gloves are off. CMA thinks it is an elephant and that Cytonn is a mosquito. But Cytonn is a bee, sometimes dancing like a butterfly but when it stings, CMA will need backup.

If you have been following the conversation of Edwin Dande online, the CEO of Cytonn Investments, you may have realized that he is a man on a mission, angry at injustice and intolerant to mediocrity, and has declared war to ensure sanity at CMA is restored.

The war between the Capital Markets Authority and Cytonn Investments is on. The gloves are off. CMA thinks it is an elephant and that Cytonn is a mosquito. But Cytonn is a bee, sometimes dancing like a butterfly but when it stings, CMA will need backup.

Read More: We Are Suing You For Defamation, Cytonn Goes For CMA Boss

Cytonn, through its lawyer Apollo and Co. Advocates, want the Chief Executive Officer (CEO) of the Capital Markets Authority (CMA) gone. They want him out of the office like yesterday. And they have valid reasons as to why the is dangerous to the sector and economy.

“We are also seeking your expeditious removal from office because it is our view that (a) you have fallen short of upholding the provisions of Article 10 of the Constitution on National Values and Principles of Governance, and specifically Article 10 (2) (c) on “good governance, integrity, transparency, and accountability”, (b) you have contravened Article 75 of the Constitution, and (c) that you present a clear and imminent danger to our capital markets,” read part of the letter sent to the CMA boss by Cytonn.

Read More: Cytonn Claims 0.8% Market Share in Regulated Funds Despite Challenges

According to Cytonn, through CEO Edwin Dande, Mr. Shamiah’s incessant attack on the Cytonn brand are putting into risk investments of over 30,000 Kenyans valued at over 20 billion shillings. The company accuses the man of not having the interests of investors at heart as it should be.

“Your continued partisan application of policy and the regulations. Your continued commission of illegalities and irregularities at the Capital Markets Authority in favor of some players to the detriment of certain singled out players, as set out in this letter,” said Cytonn.

7 Major reasons why Cytonn thinks Shamiah should be out and gone

  1. Incessant lying to the Kenyan Public, the Parliamentary Committee on Finance and Planning, and the National Treasury Secretary about the legality of Private Offers.

  2. Continued partisan application of policy and regulations.

  3. Continued commission of illegalities and irregularities at the Capital Markets Authority in favor of some players to the detriment of certain singled out players.

  4. Continued targeting of former Britam Employees who joined Cytonn to wit; – Edwin Dande, Elizabeth Nkukuu, and Patricia Wanjama, as captured in the minutes of the CMA Meeting held on March 13th, 2019 where they were condemned unheard in total violation of the non-derogable right to a fair hearing.

  5. Continuous and repeated violation of Fair Administrative procedures by recently giving Cytonn shareholders, including one on maternity leave, less than 24 hours to appear in the person failing which, the man then proceeded to sanction them when they requested for rescheduling.

  6. Wilful failure to put into place appropriate policies to facilitate the financing of the President’s housing agenda.

  7. Failure to provide regulations that would enable the registration of Corporate Trustees in order to provide a fair playing grounds for capital markets.

“Someone reach out to CMA and ask them to take their issues with market participants behind closed doors, but if they must use press statements and press briefings, then at least put out the correct information, backed by documentary evidence,” said the seemingly furious CEO of Cytonn Mr. Edwin Dande at a past function.

“CHYS is properly a private offer, we have even submitted the issue for judicial interpretation, but for the sake of peace in the market and most importantly to protect investor interest, we are happy to convert it,” he said.

The CEO of the real estate giant says the regulator wants to characterize private offers as risky without giving any statistical evidence. The reality is that losses in products regulated by CMA have registered more defaults than privately offered products.

Read More: Cytonn CEO Tells CMA To Stop Destabilizing Markets

Members of Parliament petitioned to Act and save the sector

Cytonn is not playing around. It has petitioned the National Assembly through Apollo and Co. Advocates to have Mr. Shamiah grilled, investigated, and removed.

Cytonn is petitioning the National Assembly pursuant to section 3 of Petition to Parliament (Procedure) Act, Chapter 7C of the Laws of Kenya… (see more in the attached letter).

In a lengthy letter to the National Assembly, Cytonn wants the Honorable Members to have a look at a number of issues done by Mr. Shamiah that are contrary to the mandate bestowed on him. Here are some of the issues raised before the house:

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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