East African Portland Cement Board raises reservations over appointment of new MD

A section of East Africa Portland Cement employees who protested against recruitment of new Managing Director on Dece 23, 2024. [Peterson Githaiga, Standard]

The East Africa Portland Cement Company (EAPCC) board has raised concerns over the appointment of a new Managing Director.

The board through its chairman Brig (Rtd) Richard Mbithi said although Mr Bruno Oguda Obodha was appointed as the Managing Director for East African Portland Cement Plc by President William Ruto, his involvement with the company raises integrity issues that amount to a conflict of interest.

In a letter dated December 27, 2024, and addressed to the Trade Cabinet Secretary, the board argues that it was not privy to the issues raised at the time it submitted three names for consideration for the post.

"Whereas Mr Bruno Oguda Obodha was appointed as the Managing Director for East African Portland Cement Plc (EAPC PLC) and as we await your communication on the same, we humbly bring to your attention the emerging issues that have reference to Circular Ref No. OP/CAB.9/1A dated April 20, 2022, issued by the Permanent Secretary/Secretary to the Cabinet and Head of Public Service," read part of the letter.

Brig (Rtd) Mbithi said although the company had in 2023 appointed M/s Georner Systems Limited & Massel Real Property as a selling agent of a portion of land which is currently ongoing, it is worth noting that Mr Bruno Oguda is the director of the agent company, a conflict of interest that should have been disclosed during his interview for the position.

"Whereas EAPC PLC floated a tender No. EAPCPLC/OT/340/2024 dated 23rd October 2024 for provision of security services, M/s Brumec International Security Company Limited submitted a bid which included forged documents. It is noted that Mr Bruno Oguda Obodha is a Director of the Company," read the letter.

Brig (Rtd) Mbithi said the above-emerging issues are of integrity and conflict of interest as stipulated in the circular which has implications for the business as a listed (NSE) entity.

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The letter by the board comes days after a section of employees staged a protest against Oguda's appointment.

The protesting workers barricaded the company’s main Athi River plant paralysing operations in what they termed as a 'skewed' recruitment process.

 Mr Oguda was expected to report to work on Monday this week replacing Mr Mohammed Osman Adan who has been acting in the same position for the last six months.

But hundreds of workers opposed to his appointment shut down the kiln and barricaded the plant's main gate using tractors bringing to a halt the operations.