Portland Cement MD blames corruption cartels for firm’s losses

What you need to know:

Mr Nkeri was reacting to a Business Daily report on the state of the company published on Monday.
He said corruption cartels are fighting a turnaround process initiated by the company since he took over.
The MD said he is aware of those behind the current problems as he strives to turn it around.
He also called for the support of the board and shareholders to save the company from insolvency.

East African Portland Cement Company (EAPCC) Managing Director Simon Peter Ole Nkeri has blamed corruption cartels and a bloated workforce for the losses the company has been making.

Mr Nkeri was reacting to a Business Daily report on the state of the company published on Monday.

READ: Portland Cement on the spot after fresh audit reveals Sh3bn insolvency

He expressed frustrations about the state of the cement firm:

“This is the untold story of East African Portland Cement, whose fortunes have dwindled over the years to an extent that as at 30th June 2016, the company was basically technically insolvent, highly geared/indebted with a bloated workforce, some of whom have been involved in corrupt practices and stealing from the company,” he wrote on his Facebook page.

He said corruption cartels are fighting a turnaround process initiated by the company since he took over.

'Fighting back'

The MD said he is aware of those behind the current problems as he strives to turn it around.

“As we fight against these nightmares, the corruption cartels are already fighting back to derail the process of turning around EAPCC and to scamper our bid to turn around its fortunes.

“We are alive to such malpractices and corruption cartels and networks but we shall relent to redeem EAPCC and to seek to re position it as a key market leader in the industry,” he said.

The MD also called for the support of the board and shareholders to save the company from insolvency.