News
Why A Cement Firm Rejected Ruto’s Choice For MD
The secretary said the Presidential Press Release dated 20th December 2024, on the appointment of Bruno Oguda Obodha as the company’s managing director, was made erroneously.
East Africa Portland Cement Company (EAPCC) has said President William Ruto has no capacity to make or confirm appointment on behalf of the board of directors of the company.
In a shocking replying affidavit filed in court by the acting company secretary Roselyn Ominde, the company claims that President Ruto is not a member of the board of directors of the firm and has, therefore, no capacity to make an appointment on behalf of the board.
The secretary said the Presidential Press Release dated 20th December 2024, on the appointment of Bruno Oguda Obodha as the company’s managing director, was made erroneously.
According to Ominde, the purported appointment or confirmation was by a party, the President, who is not mandated to appoint the MD.
She added that the decision amounted to usurping the exclusive powers of the board of directors of the company, and therefore ultra vires, illegal and irregular.
“The insubordination/Countermand of the President and usurping/arrogation of powers and/or mandate of Board of directors East Africa Portland cement company”.
Ominde further told the employment and Labour Relations Court that in a letter dated 27th December 2024, the Brigadier (Rtd) Richard Mbithi wrote to the Trade and investment cabinet secretary seeking to clarify the various conflicts of interest that had come to the attention of the Board of directors.
She said Obodha failed to disclose during his interview with the Board in light of the tenders that EAPCC had advertised and awarded to third parties where Obodha had an interest in.
The court heard that Mbithi wrote the letter dated 27th December 2024 in his capacity as the chairperson of the Board of directors of the company.
“Mbithi did not in any way usurp or arrogate himself powers and mandate of the Board of directors. He only clarified issues, on behalf of the Board of directors, which Obodha ought to have disclosed during his interview with the company but failed to do so,” the cement manufacturer told the court.
The troubled cement company argues that the Mbithi did not in any way insubordinate or countermand the decision of the President, overturn the recruitment process and appointment of the company’s MD.
She said the chairman only made a communication seeking to clarify issues with Head of Public Service.
Ominde said lawyer Apollo Mboya has not outlined how the letter dated 27th December 2024, clarifying issues which were not brought to the attention of the Board of directors, violated, infringed or in any way threatened his rights and fundamental freedoms, the values and principles of public service and provisions of Mwongozo Code of Governance for state corporation.
According to Ominde, Mbithi did not in any way insubordinate or countermand the decision of the President or overturn the recruitment process and appointment of the company’s MD.
On the failing of JD system, she explained that was an electronic system used in the operations of the company.
The said system, being an electronic system, is susceptible to many Interruptions influenced by third parties and factors such as power outrage, downtown, scheduled system maintenance among others which are beyond the control of the board, she said.
During such rare interruptions, she added, EAPCC has put in place alternative working mechanisms to ensure smooth and continued operations of the company.
The company said the JD System has never been mysteriously disabled and any interruption of the JD system was timeously resolved and its effect on the operations of the company, if any, was not adverse.
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