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{
    "id": 1128908,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1128908/?format=api",
    "text_counter": 303,
    "type": "speech",
    "speaker_name": "Kitui Rural, CCU",
    "speaker_title": "Hon. David Mboni",
    "speaker": {
        "id": 13388,
        "legal_name": "David Mwalika Mboni",
        "slug": "david-mwalika-mboni-2"
    },
    "content": " Thank you Hon. Temporary Deputy Speaker for giving me this opportunity to present a response to a Statement Request by Hon. Munene Wambugu. Hon. Temporary Deputy Speaker, pursuant to Standing Order No.44 (2) (c), Hon. Wambugu requested for a Statement on 23rd September 2021 regarding upsurge of unregulated investment schemes. As regards the number of regulated and unregulated schemes in existence in the country and whether the Chairperson could provide a list of the said schemes and actions that have been taken against them, the National Treasury responds as follow: There are 28 Collective Investment Schemes, three Real Estate Investment Trusts, and one Online Money Manager. The unregulated schemes are as indicated in the list attached to the Statement. Other approved real estate investment trusts include Akon Development Real Investment Trust, AIREIT and ARM Fahari. The only listed online foreign exchange money manager is Standard Investment Bank Limited trading as MANSAX. Investigations into unregulated schemes are at various stages. The cases pending before court are as the list attached to this Statement. Cases in respect of which the promoters and directors have secured injunction against the Capital Market Authority (CMA) and the Director of Criminal Investigations (DCI) include one involving Cytonn Investment Limited, on behalf of Cytonn. Cases of other entities are at various stay orders against the CMA and the DCI, barring them from taking any further action. Cytonn has since filed civil suits against the CMA Chief Executive Officer and some managers of CMA. The cases under investigations are as listed in the Statement. The second question is on steps the Government is taking to ensure that all regulated and unregulated schemes are fully investigated, forensically audited and perpetrators taken to court so that funds that were illegally collected from various victims can be returned to the owners. The CMA has developed an online compliance and whistle blower portal on its website. Whistle blowers can visit the portal and alert CMA: What is happening?” The CMA has established a special investigation and enforcement unit for administrative investigation and a unit from the Directorate of Criminal Investigations has been seconded to it for criminal investigations. The CMA has at its disposal a variety of administrative sanctions for offences committed by regulated and unregulated entities, subject to penal sanction. The CMA has continuously conducted raids on unlicensed operators, seized evidence and arraigned their directors and promoters in court for criminal prosecution. On the question of whether the relevant Ministry could consider drafting rules and regulations geared towards sound management of such schemes, and submit them to the National Assembly for adoption, the Authority is in the process of finalising the Draft Capital Markets (Collective Investment Schemes) Regulations 2021 with intent to expand the scope of the regulatory framework to cover schemes that do not fall within its ambit. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}