Tag: NCC

  • NSSF Lost Sh9Million In The ARM Recievership Deal

    NSSF Lost Sh9Million In The ARM Recievership Deal

    Early this month, this site published a story that Daveks NCC tycoon owner had bought the debt ridden Athi River Mining cement plant.

    And today, according to an audit report by the Auditor General, Pensioners lost Sh9 million for the 2.9 million shares that the National Social Security Fund (NSSF) bought in now auctioned Athi River Mining Cement.

    In the NSSF records seen by the OAG, the fund has passed off the now worthless shares worth sh9 millon and the records hidden from perusal books.

    The debt ridden ARM Cement was placed under a 12-month receivership on August 17, 2018 before being sold of by PwC after they failed to repay their debts.

    Given that the ARM Cement had a debt of $190 million but sale of Kenya subsidiary yielded $50 million and Tanzania $116 million — and other assets like Rwanda are not significant — the sale price is insufficient to pay all the creditors and shareholders,” Mr George Weru, one of the administrators from PriceWaterhouseCoopers (PwC) said.

    The auction of ARM has also seen British-owned CDC company lose Sh14 billion after their 42 percent stake in ARM that they acquired in April 2016 for were rendered worthless.

    Pradeep Paunrana, the owner of now NCC-owned ARM has fallen short of his sh10billion family’s empire.

    NSSF has also lost Sh534 million Chase Bank and Sh132 million Imperial Bank bonds whose  recovery is unlikely despite the provisions made for them for the last two years.

    “The bonds were invested between 28 September 2015 and 6 October 2015 and were to mature between February 2022 and September 2022. The two banks were put under statutory management by CBK before maturity of the bonds. Consequently, it is not clear if and when the money invested in corporate bonds totalling Sh666.9 million will be recovered” the Auditor General said. 

    The Auditor General also revealed NSSF still is holding onto fixed deposit of up to Sh329.5 million lost. The fund lost Sh170 million in Imperial Bank and Chase Bank (Sh259.5 million).

    Earlier this month, NSSF had declared their Sh220Billion investment in Nairobi and Mombasa based properties alone, a move that prompted the office of Auditor General to scruitnize the funds books.

  • Narendra Raval, NCC’s Tycoon Ignores Rai’s Petition And Buys Sh5 Billion ARM Cement Plant

    Narendra Raval, NCC’s Tycoon Ignores Rai’s Petition And Buys Sh5 Billion ARM Cement Plant

    The world’s richest black man Aliko Dangote wanted to Buy the loss making Athi River Mining cement plan but, according to his foundation, ADF, people in Jubilee government demanded unmangeable bribes that saw him invest in Ethiopia.

    A worker in ARM cement Plant Photo|BD

    The very same embattled ARM has been bought by Devki’s National Cement Company a move that has seen billionaire Narendra Raval ‘Guru’  expand his kingdom in Cement making industry to second-largest manufacturer ahead of tomorrow’s court proceedings.

    Kabras Sugar mill owner Jaswat Rai and former ARM owner Pradeep Paunrana had petitioned the court to stop the sale. However, PriceWaterhouseCoopers (PwC) administarors have closed the deal despite a pending appeal in a case filed on July 11 this year that is set to be heard tomorrow, Wednesday 16th October.

    Yeasterday, Mr Raval said that NCC had received authorization of the Competition Authority of Kenya (CAK) on condition that they retains 95 per cent of the ARM’s current 1,100 employees. He stated that they decided to keep all the workers.

    “We are happy to inform you today that we have been able to complete the ARM acquisition and cleared all the transaction cost amounting to Sh5 billion to the PwC,” said Mr Raval.

    According to PwC’s Muniu Thoithi,  National Cement Company had taken over all assets and businesses of ARM after paying Sh1 billion and safeguarded a payment of Sh4 billion in the next two months to settle administration expenses and distribute to creditors.

    “Securing a suitable investor with the ability to make the requisite CapEx investments and inject the much-needed working capital to boost production to optimal and sustainable levels was a top priority for us given ARM’s dire financial situation and the poor state of the plant,” Muniu Thoithi said.

    PwC also sold off Tanzanian subsidiary following the clearance by the court to sell ARM Kenya business to a Chinese company, Huaxin Cement. HCC bought ARM subsidiary Maweni Limestone Limited, in Tanzania for Sh11.9 billion immediately Justice Mary Kasango lifted the stay orders.

    ARM is set to make NCC, which manufactures the Simba Cement brand, the second-biggest cement maker in Kenya.

    According to CAK data, Bamburi Cement is the market leader in the sub-sector with a market share of 33 percent.

    Jaswant Rai the billinaire owner of Western Kenya Sugar, Sukari Industries and Olepito Sugar Company who also acquired cooking oil and soap manufacturing Menengai Oil company has also been making an expansion into cement manufacturing. Rai has established small cement plant in Awasi, Kisumu.

    Earlier this year, NCC merged with Cemtech in West Pokot with significant limestone and clay deposits that are key components in Cement production.

    NCC is also constructing  a second 1.8 million metric tonnes p.a. clinker line in Kajiado that is set to be commissioned by 2020.

    Raval is also setting up another 0.75 million metric tonnes cement plant to be built in Kilifi while the 0.88 million metric tonnes is still underway to be commissioned in mid-2020.

    “These two plants will cost Sh3 billion each while the Kenyan plant of ARM Cement may increase their capacity by 0.4 million metric tonnes,” Apex Capital said in a note to investors.