By James Anyanzwa
In his resignation letter dated May 28 and addressed to the firm’s chairman Joel Kibe, Njonjo said he was quitting because “the management of CMC was now in the able hands of directors of impeccable integrity and a diligent management team.”
“...in light of the foregoing and as discussed, I hereby now write to tender my notice of retirement effective June 1, 2012,” said Njonjo.
Trading in CMC shares on the Nairobi Securities Exchange (NSE) was suspended on September 17 last year following a boardroom war that led to the ouster of the company’s chairman, Peter Muthoka, over alleged conflict of interest and over-billing of the motor firm.
The long-drawn battle for control of CMC began on September 8 last year when Mr Joel Kibe replaced Muthoka as chairman in a boardroom coup.
CMC’s board has been divided, with majority of the directors supporting Kibe in opposition to Mr Muthoka.
The freeze in trading of CMC shares is aimed at preventing the dumping of the firm’s shares by investors acting on the negative reports, culminating in a share price erosion and accumulation of shares by long term investors.