East Africa Portland Cement board rejects Obodha's appointment over integrity concerns
By Maureen Kinyanjui |
The board distanced itself from the selection process, explaining that it was unaware of these integrity concerns when it submitted Obodha's name.
The board of the East Africa Portland Cement Company (EAPCC) has rejected the appointment of Bruno Oguda Obodha as the new managing director. On December 20, 2024, President William Ruto appointed Obodha to the position.
The board's decision, which came during a meeting held on Friday, is based on concerns related to integrity and a potential conflict of interest involving Obodha.
In a letter addressed to the Cabinet Secretary for Industry, Trade, and Investment, the board outlined its reservations, citing several issues that it believed were not adequately addressed during the interview process.
The letter signed by the EAPCC board chairman Richard Mbithi raised the alarm over Obodha's business dealings that could compromise his ability to manage the company impartially.
"Whereas EAPCC appointed M/s Geoner Systems & Massel Real Property on December 22, 2023, as a selling agent for a portion of LR No.10424, it is noted that Bruno Obodha is a director of the company, presenting a clear conflict of interest," the letter said.
The board further noted that Obodha's involvement in the company's business dealings should have been flagged during the interview stage, pointing to a potential breach of the company's governance standards.
Additionally, the board raised concerns about Obodha's involvement with another company, M/s Brumec International Security Company Limited, which had submitted a bid for a tender to provide security services.
The company was found to have submitted forged documents, and once again, Obodha was linked to the company as a director.
The board stated that these issues were serious enough to negatively impact the reputation and operations of EAPCC, particularly as the company is listed on the Nairobi Securities Exchange (NSE).
In the letter, the board distanced itself from the selection process, explaining that it was unaware of these integrity concerns when it submitted Obodha's name along with two other candidates for consideration.
The board had shortlisted three candidates: Mohammed Osman Adan, who scored 88.15 per cent, followed by Obodha with 64 per cent, and Dr Justa Mwangi, who scored 63.86 per cent.
The controversy surrounding Obodha's appointment escalated when workers at EAPCC's Athi River plant went on strike on December 23, 2024, protesting the appointment. Operations at the plant were temporarily halted, but production has since resumed.
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