[2008-06-16]  Stockbroker accused of delaying Safaricom refunds
Hundreds of angry Safaricom shareholders stormed offices of a Nakuru stockbroker to protest at the delay of refunds.

The shareholders threatened to paralyse business at the Discount Securities offices, if they did not receive their refunds.

They accused the stockbroker of introducing new conditions instead of releasing the refund cheques.

Trouble started after the shareholders declined to fill a new share transacting account form issued by the brokerage firm bearing the name of a Nairobi bank.

"I do not understand why we should open a new account instead of receiving our cheques as is the case with other stockbrokers," Mr. John Kinyua, a shareholder, told The Standard.

According to the account opening form provided by the stockbroker, the shareholders are to authorise the bank to cash their cheques.

The mystery of the form is further compounded by the fact that it does not disclose the directors of the bank and the clients seeking refund are not allowed to know the cheque numbers and the amount to be refunded.

The clients are asked to sign the form that has no terms and conditions, yet they (terms and conditions) apply, as indicated at the bottom of the form. Majority of the shareholders refused to sign the forms, saying all they needed was their refund.

"How can I sign a form that does not have a letterhead and the name of the bank?" asked Mr. David Wambua, another applicant.

However, according to the branch manager, Mr. John Muindi, the move was meant to curb fraud and enable fast transfer of the money.

"We had the highest number of applicants and sorting out the cheques would take a month. With this new method, once the forms are filled, it will take four days," he said. Muindi said those who had filled the forms would start receiving their money from Wednesday.

Source: Copyright © 2008 Standard Group