The Board of the Capital Markets Authority (CMA) last week announced that it had resolved not to take enforcement action against Ms. Mbatha Mbithi, a former director of Uchumi Supermarkets Limited (USL) after providing her with opportunity to be heard on 30 November 2016.
During the hearing before the Board and through written submissions, CMA says Ms. Mbithi provided evidence to demonstrate that she had played a vigilant role in overseeing USL management’s conduct and in holding management accountable in line with her responsibilities as a director.
Ms. Mbithi further demonstrated her proactivity in pushing to have issues raised by the USL internal auditor addressed in addition to actively petitioning for the appointment of a forensic auditor to look into the affairs of USL.
The CMA Board noted that although issues raised by CMA in the Notice to Show Cause were deliberated collectively with other USL Board Members, Ms. Mbithi satisfactorily highlighted her individual efforts to promote accountability and transparency and that she endeavored to fulfill her fiduciary duty of care as a director of a public listed company.
CMA’s decision comes barely a month after i announced it take punitive action against former senior managers of Uchumi Supermarkets and a financial advisory firm over the handling of a 2014 rights issue.
