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{
    "id": 196943,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/196943/?format=api",
    "text_counter": 150,
    "type": "speech",
    "speaker_name": "Mr. Oparanya",
    "speaker_title": "",
    "speaker": {
        "id": 201,
        "legal_name": "Wycliffe Ambetsa Oparanya",
        "slug": "wycliffe-oparanya"
    },
    "content": "Mr. Speaker, Sir, I rise on a point of order to seek a Ministerial Statement from the Minister for Finance regarding the decision by the Capital Markets Authority (CMA) to place Nyaga Stock Brokers under receivership on 3rd March, 2008. Mr. Speaker, Sir, placing Nyaga Stock Brokers under receivership, and the collapse of another stock broker last year - Francis Thuo and Partners -has discouraged wananchi from participating in the activities of the Nairobi Stock Exchange (NSE). This means that poor investors lose their investments. Obviously, this will affect those who intend to participate in the Safaricom IPO, which starts next Friday. Mr. Speaker, Sir, it is alleged that the Managing Director of Nyaga Stock Brokers is also a director of the NSE. He used his position to convince the Nairobi Stock Exchange to advance Kshs100 million to Nyaga Stock Brokers as a rescue package. This is corruption of the first order. When Francis Thuo and Partners collapsed last year, it emerged that Nyaga Stock Brokers were not doing well. It is the same CMA and NSE which came out in defence Nyaga Stock Brokers. Mr. Speaker, Sir, I would like the Minister to clarify the following:- First, why was the stockbroker put under receivership? Secondly, why did the Capital Markets Authority (CMA), as the regulatory body, not detect the problem and take corrective action at the earliest stage? Thirdly, why did the Minister allow the Managing Director of Nyaga Stockbrokers to also serve as a Board Member of the Nairobi Stock Exchange, which is a direct conflict of interest? Mr. Speaker, Sir, lastly, what measures has the Minister put in place to ensure that the capital markets are stabilised and that poor wananchi do not lose their investment through March 25, 2008 PARLIAMENTARY DEBATES 375 fraudulent stockbrokers in future? Thank you."
}