No hiding place as embattled Shelter Afrique boss James Mugerwa resigns

James Mugerwa is the Managing Director, Shelter Afrique

The Shelter Afrique board has fired the real estate lender’s embattled Managing Director James Mugerwa.

The Ugandan national was forced out after an audit report confirmed allegations of cooking books and staff harassment.

In a press statement yesterday, the board said they had “amicably” parted ways with Mugerwa (pictured) effective Wednesday.

Mr Mugerwa has been replaced by Director of Business Femi Adewole as the acting managing director.

“Mr Oumar Diop is the acting deputy managing director with immediate effect and Mr Vipya Harawa retains his position as company secretary/director of legal, risk and compliance,” said the board.

In a special audit by Deloitte after allegations of conflict of interest in doing business with the lender, staff harassment, and blowing $7,845 (Sh784,500), the auditors recommended disciplinary action against the erstwhile managing director.

Mr Mugerwa is said to have racked up telephone bills of $3,740 (Sh385,220) and $3,325 (Sh342,475) on his two mobile phone lines in two weeks while attending the firm’s Annual General Meeting in Abidjan, Cote d’Ivoire and later while on travel to Ghana.

His contract was to expire in two and half years. Former Head of Finance Godfrey Waweru also blew the lid on accounting and lending irregularities at Shelter Afrique, saying Mr Mugerwa acted in breach of professional guidelines.

The report estimates that an additional impairment provision of approximately $6 million (Sh600 million) may be required by Shelter Afrique on the financial position statement of 2015.

“The board notes this estimate with concern, but is confident that it does not, ceteris paribus, fundamentally undermine the financial position of the company,” says a report on the Deliotte findings. Mr Waweru, has however, also been found to have contravened the accountant code of ethics by preparing the 2015 financials with full knowledge of its flaws.

The Pan African real estate financier says it has successfully met with its member countries who have committed to shoring up funding in a resolution to pay arrears.

A call for capital subscriptions was also adopted unanimously, with member countries committing to transmit their letters of intent to the African Development Bank (AfDB).