Monday, January 2, 2012

Portland has seven days to clarify boardroom changes



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Capital Markets Authority chief executive officer Stella Kilonzo
Capital Markets Authority chief executive officer Stella Kilonzo 
By WACHIRA KANG’ARU wkangaru@ke.nationmedia.com
Posted  Sunday, January 1  2012 at  17:58
IN SUMMARY
  • Regulator wants a written explanation on offences accruing after firm’s stormy leadership wrangles
Capital Market Authority has slapped East African Portland Cement with a notice requiring the cement maker to respond to more than five offences arising from the acrimonious change of management two weeks ago.
In a letter dated December 30 and addressed to the acting managing director Mr Peter Korir, the cement maker has seven days to respond to the authority letter.
CMA action follows the move by acting Minister for Industrialisation, Amason Kingi, to suspend Eapcc board of directors and the managing director pending investigations.
“Note that the absence of a board of director to provide strategic guidance, lead and control the company and be accountable to its shareholders, constitutes a critical shortcoming on satisfaction of the listing requirements of the company,” the CMA letter read.
The offences attract penalties of unspecified amounts.
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Nairobi Securities Exchange on Tuesday last week suspended the Eapcc shares from trading pending official relay of the changes. The failure to inform the authority and NSE is also part of the charges.
The authority also takes offence with the ad Mr Korir placed in theSunday Nation (December 25, 2011) with the photographs of Mr Mark Ole Karbolo- the suspended chairman and Mr Kephar Thande, the suspended managing director, notifying the public that the two are not authorised to transact business on behalf of Eapcc without seeking approval for such an ad.
Immediately after the minister’s action, Mr Karbolo told off Mr Kingi saying Eapcc board will remain in office.
Mr Karbolo noted the minister lacked authority to direct a public listed company relying on wrong information that National Social Security Fund had sold its stake in Eapcc from 27 per cent to 23 per cent thus reducing government control.
The now suspended management had celebrated the reduction, which had effectively taken out Eapcc from a parastatal, saying it would increase efficiency and reduce political interference.

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