Tough Luck

The Court of Appeal threw out a case filed by Okanda Finance and Okanda Investments against Central Bank, and awarded costs to the financial regulator. The Court of Appeal threw out a case filed by Okanda Finance and Okanda Investments against Central Bank, and awarded costs to the financial regulator.

Okanda Finance and Okanda
Investments had challenged the Central Bank’s Director of non-banking financial
institution’s powers to probe their accounts and business activities.

Both companies alleged that
they were not deposit taking institutions and therefore didn’t fall under
Central Bank’s supervision.

But the Central Bank argued
that Okanda accepted public funds under a ‘Credit Investment Scheme’ offering
varying returns from 13 percent to 24 percent. Okanda was also alleged to offer
working capital and short term loans to the public.

According to the draft
financial statement submitted by Okanda Financ