Oct 11, 2011
General
caxias
CMC says it will cooperate with the Capital Markets Authority to conclude investigations in its affairs even as it readies itself for a revamp.
CMC says it will cooperate with the Capital Markets Authority to conclude investigations in its affairs even as it readies itself for a revamp.

The car dealer is currently suspending from trading at the Nairobi Stock Exchange pending the outcome of a forensics audit on its affairs.

The investigations followed accusations by two rival groups in the board of directors over fraud claims and corporate governance issues.

“We want to operate like a Sh1 billion profit company,” CMC chief executive Bill Lay said of the company new outlook.

The company recently gave a profit warning saying its profitability will drop by more than 25 per cent for the year ending September 2011.

It cited a volatile business environment, depreciating shilling, bad debts and low sales for the profit slump.

The disagreements at the board of directors were between Mr Lay and Mr Peter Muthoka, who had just been replaced as chairman.

Mr Lay had accused Andy Forwarders of inflating freight costs to CMC by between 10 and 30 per cent.

The company (Andy Forwarders) is associated with Mr Muthoka.

The company is now in the process of looking for new partners in logistics and supply.

“We want to make our procurement lean and effective. We will be calling for companies to tender for the services and if Andy (Forwarders) wants to tender they are welcome,” Mr Lay added.
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