Saturday, December 24, 2011

Kajwang' reinstates Bill Lay's work permit



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PRESIDENT Kibaki and Prime Minister Raila Odinga yesterday ordered Immigration minister Otieno Kajwang’ to rescind his directive revoking the work permit for CMC chief executive officer Bill Lay.
 Kajwang' revoked Lay's work permit on Tuesday which prompted a swift and angry response from the CMC chairman Joel Kibe who accused the minister of malice and described the directive as "capricious, arbitrary, highhanded.... and otherwise null and void". Kibe's letter was also copied to the head of public service Francis Muthaura and the Capital Markets Authority chief executive Stella Kilonzo.
 According to sources at the Office of the President and the PM's Office, the two principals were unhappy with the manner in which Kajwang' had become embroiled in the matter in which Lay had exposed massive fraudulent dealings in the company.
 Kajwang' was directed to rescind his order cancelling Lay's work permit until the Capital Markets Authority concludes its investigations into the CMC fraud allegations.
 Unconfirmed reports said that Kajwang's memo asking the director of immigration services to withdraw Lay's work permit was leaked to the media as the minister was in the process of seeking a legal opinion on the matter.
 Yesterday Lay, who only received his work permit in May 30, said he was still awaiting a communication from the Immigration ministry on the way forward. “I am waiting for a letter from the minister,” Lay said on the phone without giving more details. But he said he had been advised that the revocation order had been overturned.
 In revoking Lay's work permit, Kajwang' had argued that his continued employment at CMC had led to the vicious boardroom wars which led to its suspension from the Nairobi Securities Exchange.
 "I have also continued to receive written submission from various shareholders of CMC requesting me to revoke his work permit in the interest of the company," said Kajwang’ in the memo issued on Tuesday. "Subsequently, I hereby direct that you revoke his permit forthwith until they sort out their internal management problems and until they advice us otherwise."
 In his objection to the manner in which Lay's permit was revoked, Kibe said the CMC had continued to operate normally despite the boardroom squabbles pitting Lay against the former chairman Peter Muthoka.
 "The company has been holding its routine and special board meetings as usual the last one being held on 5 December 2011 which was attended by all the board members," Kibe said.
 The problems facing the company emanated from a dispute between Andy Forwarders and its chairman and CEO Muthoka. The CMC has accused Andy Forwarders, its long servicing logistics provider, of overcharging it to the tune of Sh2 billion. The CMC has already filed a suit to claim the amount from Andy Forwarders.

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