Corporate News
Judge reinstates East African Portland Cement Board
Posted Monday, January 9 2012 at 16:10
Nairobi High Court Judge Joseph Mutava on Monday reinstated entire board and the Managing Director of East African Portland Cement (EAPCC) until case on their suspension is heard. The Judge also directed acting Industrialisation minister Amason Kingi to stop interfering with the internal management of the company.
The directive gives reprieve to the directors who have been battling to reclaim their reputation after being suspended for what the government termed as 'irregular purchases.'
Justice Mutava issued the orders after the company moved to court seeking orders to have the decision by the minister suspended.
The newly appointed Managing Director Peter Korir has also been stopped from taking office pending the hearing of the case.
Mr Kingi dissolved the board of directors of the cement manufacturing company on December 22. (READ: Kingi sends EA Portland board on compulsory leave pending probe)
He further removed from office the managing director Mr Kephar Tande and appointed Mr Peter Korir to act in is capacity.
But on Monday lawyer Ahmed Adan, acting for the company, told the court that the minister had no mandate to remove from office the managing director and the board because EAPCC is not a state corporation.
Mr Adan said the matter is serious because the decision by the minister has affected the company’s trading at the Nairobi Stock Exchange.
Justice Mutava issued the temporary injunction until January 19 when all parties will appear in court for hearing.
The board chairman, Mr Mark Ole Karbolo, and three other directors — Titus Naikuni, Hamish Keith and chief executive Kephar Tande — were seeking to reverse the minister’s decision, arguing that EAPCC is not a state-controlled company.
On Thursday last week Mr Kingi disclosed for the first time some of the reasons why the government sacked the directors of the Cement Company, saying it could not reveal more without jeopardising a forensic audit currently under way.
Court papers filed at the start of a case in which the directors are seeking to be reinstated alleged that the board spent Sh1 billion on goods without following competitive bidding and, in another instance, overruled the tender committee to vary the terms of a clinker contract.
Restricted tendering
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