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"id": 1132095,
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"content": "Thank you, Hon. Temporary Deputy Speaker, for giving me this opportunity to read Public Petition No.072 of 2021 regarding irregular and fraudulent trading activities by Dyer and Blair Investment Bank. I, the undersigned, on behalf of Ngei Mativo of National ID No.8364930, a resident of Kitui Rural, draw the attention of the House to the following: THAT, at some point in February 2015, Mr. Ngei Mativo moved his share portfolio and cash to Dyer and Blair Investment Bank through its Central Depository and Settlement Corporation Account No.1042653 with a view to saving and investing in shares in various marketable securities listed in the Nairobi Securities Exchange in order to earn profits from the said trading. THAT, on 26th February 2015, Mr. Ngei deposited a sum of Ksh328,500 to the Dyer and Blair Investment Bank Account No.010000647033 held at Stanbic Bank and deposited a further Ksh8 million to the same account on 16th March 2016. THAT, on 25th March 2015, Mr. Ngei transferred these shares from ABC Capital Limited valued at Ksh3,349,675 and other shares from Kingdom Securities valued at Ksh15,609,307 to Dyer and Blair Investment Bank. THAT, by the end of March 2015, Mr. Ngei had entrusted and transferred to Dyer and Blair Investment Bank a sum of Ksh27,287,545, being a share portfolio valued at Ksh19,959,045 and cash of Kshs8,328,500. THAT, the terms of engagement consummated in the agreement between Ngei and Dyer and Blair Investment Bank were that the Bank would hold any money or investments deposited in Mr. Ngei’s investment account on his behalf and transact only according to his orders and his own express instructions. THAT, since transferring the share portfolio and cash to Dyer and Blair Investment Bank in March 2015, Mr. Ngei has never issued any instructions to the broker to trade, utilise or even use any investment assets. THAT, in spite of him not having instructed the Bank to make any transactions on his behalf, in May 2015, Mr. Ngei was shocked to learn that during the months of May and August 2015, the Bank had committed his shares in a wash sale scheme where profits of shares had been sold for low value and repurchased for higher value within a trading period of 30 days as follows: (i) On 28th May 2016, without Mr. Ngei’s authority, Dyer and Blair Investment Bank sold 22,700 shares of Kenol-Kobil Limited at Ksh.8.80 each and repurchased 8,300 shares in the same company at Ksh.8.90 per share on 29th May 2015. They then further sold 80,500 shares of the company on the same date at Ksh.8.60; (ii) On 3rd August 2015, Dyer and Blair Investment Bank, again, without express instructions or authority from Mr. Ngei, bought 200 shares of Equity Bank at Ksh37.75 each. On 6th August 2015, the Bank repurchased 100,000 shares from Equity Bank Limited at Ksh40 each and repurchased a further 7,300 shares in the said Bank for Ksh42 each on 13th August 2015. 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."
}