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By ADRIAN MWANZA
A FORMAL complaint has been lodged against Securities and Exchange Commission (SEC) Chief Executive Officer Philip Chitalu who has been accused of gross misconduct after failing to declare interest in a company he had shares in.
According to a letter dated August 26 by Paul Norah Advocates on behalf of Pan African Exchange (PANEX) complained that Mr Chitalu was a shareholder of a company that was regulated by the SEC named as Bonds and Derivatives Exchange (BADEX) which dealt in commodities, bonds and derivatives similar to PANEX.
The letter says that the shares were owned through a layered company in BADEX called Dejavu Financial Services.
The lawyers said that Mr Chitalu had dealt with issues pertaining to PANEX and the board without disclosing these facts and conflict of interest.
By virtual of being a substantial shareholder in BADEX, Dejavu Financial Services as well as being director of and CEO of SEC, had serious conflict of interest and he grossly abrogated both companies and the SEC Act.
“Kindly note that Mr Chitalu has seriously undermined his duties as a director of SEC and its regulated entity Dejavu. He has further not disclosed this to yourselves and to our client who runs a directly competing company in bonds and derivatives,” the letter read.
The lawyers said that Mr Chitalu had requested through SEC legal counsel to have certain documents expunged from the record at the capital markets tribunal which view was an attempt to cover up the conflict of interest, lack of independence of judgement and insider trading in the manner that he conducted the affairs at SEC.
But when contacted, Mr Chitalu said that he could not comment because the matter was still being adjudicated upon.
“I will give you all the information you need but right now it is with the tribunal and once we dispose of it then I will give my stance,” he said.
Ends.
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