Cytonn CEO Edwin Dande has threatened to sue Capital Markets Authority (CMA) CEO Wycliffe Shamiah for allegedly “misleading the public and the government in regards to Cytonn and Private Offerings”.
In a letter to Shamiah seen by this writer, Dande says that the attacks by Shamiah through statements put at risk investments of over 30,000 Kenyans valued at over Ksh20 billion.
“We are also seeking your removal from office given your continued misleading of the Kenyan Public, the Parliamentary Committee on Finance and Planning, and the Treasury Secretary with regard to Cytonn and with regard to Private Offers. It is our view that you have fallen far short of Article 10, National Values and Principles of Governance, and specifically Article 10 (2) (c) on good governance, integrity, transparency, and accountability,” said Dande in the letter.
Dande also accuses Shamiah of favouring some players in the money market, while at the same time targeting former Britam Employees who joined Cytonn – Edwin Dande, Elizabeth Nkukuu, and Patricia Wanjama.
“We are also seeking your removal from office given your continued targeting of former Britam Employees who joined Cytonn – 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,” adds Dande.
In June, Shamiah accused Cytonn of operating without a licence through their private offers, the Cytonn Private Notes and the Cytonn High Yield Solution (CHYS).
“By your statements you are seen, heard and understood to insist that Cytonn Investments is operating without the sanctioning of the law and approval of the Capital Markets Authority a statement that we categorically refute. To date, all actions carried out by Cytonn are done after getting the requisite approvals from the Authority,” added Dande.
“CHYS as a private offer was duly vetted by the Authority under your leadership Mr. Shamiah as the then Director of Market Operations. The naming was co-created with the Authority under your leadership (from Cytonn Cash Management Solutions (CCMS)).”
Dande termed Shamiah’s utterances as knee-jerk reactions for self-preservation aimed at exonerating himself, rather than providing leadership and direction to the market to protect investor interest.
“We shall also be instituting through appropriate processes, you remove from office given your continued partisan application of policy, continuous violation of Fair Administrative procedures, lying to the Kenyan Public, the Parliamentary Committee on Finance and Planning and the National Treasury,” said Dande in the letter.
Dande wants permanent orders issued against Shamiah restraining him and CMA from publishing any further defamatory statements about Cytonn, its investment vehicles and or any of its subsidiaries and affiliates.
He is also seeking to compel CMA to pull down the “defamatory” statements and related threads from the Authority’s website and issue a public apology.