Ex-Kobil CEO fined for non-disclosure of ownership
3 months ago, 17 Aug 15:14
Capital Markets Authority (CMA) has fined the former chief executive of KenolKobil #ticker:KENO Jacob Segman Sh5 million for failing to fully disclose his ownership the Nairobi bourse listed oil marketer.
The regulator says that Mr Segman failed to disclose his 5.99 per cent stake in the firm, in breach of CMA regulations that demand directors make public ownership of above three per cent in listed firms.
Official records showed the 5.99 per cent stake was owned by Mr Rami Haviv, Ms Enfrati Simcha and Ms Afriat Keren through Energy Resources Capital (ERC) — which was listed as the fifth largest shareholder in KenolKobil.
But information from Swiss Financial Markets Supervisory Authority indicated that Mr Segman was one of the beneficiaries of dividends paid to ERC via a Zurich based bank.
“As a Managing Director of KenolKobil, you failed to make material disclosures of your ownership interests in KenolKobil causing publication of incorrect, untrue and misleading information,” says CMA Chief Executive Paul Muthaura in a letter to Mr Segman,
CMA says that KenolKobil’s regulatory fillings between 2008 and 2012 did not disclose Segman’s ownership.
Compensation for merger
Mr Segman in his defence said the cash paid to Swiss bank account was compensation for his role in Kenol-Kobil merger.
Kenol and Kobil merged in 2007 to create KenolKobil.
“There was no credible evidence provided by yourself such as an agreement or contract between yourself and the majority of the shareholders of KenolKobil or even an agreement of payment by ERC,” says the CMA.
Mr Segman has up to September 6 to pay the money.
Mr Segman left KenolKobil in July 2013, three months after announcing a record net loss of Sh6.2 billion for the year ended December 2012. He had served in the position for 23 years.
The oil marketer last year paid Mr Segman Sh707.1 million to settle a long-running dispute over his stock-based compensation, making it corporate Kenya’s largest single payout to an executive.
Category: business news markets opinion lifestyle corporate