Leaders want cement firm finances probed

By Daniel Nzia

Leaders in Ukambani have called for forensic investigation into alleged massive financial mismanagement at the East Africa Portland Cement Company (EAPCC).

Led by Cabinet minister Charity Ngilu, the leaders claimed the company’s suspended Board of Directors had mismanaged over Sh1 billion in addition to overdrawing its accounts by more than Sh0.8 million.

Acting Indutrialisation Minister Amason Kingi suspended the EAPCC board chaired by Mark ole Karboro late last month over gross mismanagement of the company’s affairs.

"These people should be investigated and prosecuted if found guilty of malpractices," charged Ngilu.

The EAPCC saga surfaced after Attorney General Githu Muigai said the firm was not a parastatal and the Government, which holds just 25 per cent stake, had no control over it. This is after guaranteeing a massive loan to what could be a private company, with absolutely no security.

According to media reports, the EAPCC saga runs back to 2000, when the then Minister for Finance Chris Okemo was forced into action after learning that the firm’s board had included an audacious minute in their AGM agenda, that the company be dissolved due to persistent loss-making.

The Water and Irrigation minister led leaders in storming the cement plant offices where they demanded that the troubled board be dissolved and a new one appointed.

Those who accompanied the minister included Kathiani MP and Assistant minister Wavinya Ndeti, Mutitu MP Kiema Kilonzo, former MPs Kalembe Ndile, Francis Nyenze, Grace Mwewa, Jackson Mwalulu and Mavoko mayor councillor Patrick Makau among other civic leaders.

Ngilu accused the Board of Directors of "secretly" offloading NSSF shares amounting to 23 per cent or 24.3 million shares without the approval of the Cabinet.

"The board had earlier assured us that this would not happen, but have now gone against the grain of honesty and sold out the shares," said Ngilu.

The minister also demanded that any transactions on land and other resources in Mlolongo and Athi River towns be stopped until the County governments are in place.