The High Court in Nairobi stopped the appointment of Bruno Oguda Obodha as the new Managing Director of East Africa Portland Cement Company (EAPCC).
An order issued by justice Bahati Mwamuye on Friday January 3 directed the matter be mentioned on February 12, 2025.
This followed a case filed by one Caroline Wambui Mwangi who sought to stop the appointment of Obodha over several grounds.
Justice Mwamuye issued the conservatory order on January 3 halting the plans to have Obodha take over.
“Pending the inter partes hearing and determination of the Notice of Motion Application dated 02/01/2025, a conservatory order be and is hereby issued suspending the Press Release (Notification of Presidential Action) dated 20th December 2024 and/or any other instrument, gazette notice, document or authority, designating, nominating or appointing Mr. Bruno Oguda Obodha, the Interested Party herein, as the Managing Director of the 2nd Respondent.”
“Pending the inter partes hearing and determination of the Application dated 02/01/2025, a conservatory order be and is hereby issued restraining the Respondents and/or any other person either by themselves, their agents and/or any other person(s) whatsoever from acting upon,
and/or giving effect to the Press Release (Notification of Presidential Action) dated 20th December 2024 and/or gazette notice, document or authority flowing from the same or related to the same designating, nominating or appointing Mr. Bruno Oguda Obodha, the Interested Party herein, as the Managing Director of the 2nd Respondent,” the judge ordered.
“Pending the inter partes hearing and determination of the Application dated 02/01/2025, a conservatory order be and is hereby issued restraining Mr. Bruno Oguda Obodha, the Interested Party herein, or any other person from assuming the office of Managing Director of the 2nd Respondent or performing any functions whatsoever pursuant to the Press Release (Notification
of Presidential Action) dated 20th December 2024.”
The judge allowed the Wambui to serve the respondents and Obodha with the Application, Petition, and this Court Order immediately and file an Affidavit of Service in that regard by close of business January 6.
Wambui argued the process and criteria triggering the nomination of Obodha to the position vide Press Release is completely shrouded in mystery and not accountable to the public as mandated by Article 10 of the Constitution.
“That despite the assertion that the Interested Party’s appointment was
made pursuant to the recommendation of the Public Service Commission, there is no iota of evidence pointing to the involvement of the Public Service Commission in the process leading to the said nomination. The assertion that the Public Service Commission was involved in the nomination is unfounded.”
She added the nomination of Obodha is not based on any legal provision except that it’s intended to pave way for an unmerited
individual to irregularly ascend to an undeserved office, at the expense of eligible Kenyans who have pursued the path of competence.
The Attorney General, EAPCC and EAPCC board have been sued while Obodha is mentioned as the interested party.
The company board last month refused to ratify the appointment of Obodha as appointed on December 20.
On December 23, a section of EAPCC workers shut down the company’s Athi River plant protesting Obodha’s appointment.
The workers shut down operations at the giant cement processor two days after Obodha was appointed to replace Mohammed Osman Adan, who had been serving in an acting capacity.
The workers rejected the new appointment, shut down the kiln and barricaded the main gate of the factory with tractors, bringing operations to a complete halt.
Operations in the plant have since resumed.
The cement giant is disposing of some of its prime land and is eyeing Sh45 billion to turn around the company, which is currently said to be producing 50,000 tonnes per month, the highest since 2008.
In a board meeting held at the company’s Nairobi offices, the board wrote to the Cabinet Secretary Ministry of Industry, Trade and Investment opposing the appointment of Obodha, citing integrity issues and conflict of interest.
The board chairman, Brig Richard Mbithi, said several emerging issues referenced to Circular Ref No.OP/CAB.9/1A dated 20th April 2022 issued by the Permanent Secretary/Secretary to the Cabinet and Head of Public Service, indicting the appointee was doing business with Portland and has been involved in fraud.
“Whereas EAPCC appointed M/s Geoner Systems & Massel Real property on 22 December 2023 as a selling agent of a portion of LR No.10424 which is currently ongoing, it is noted Mr Bruno Obodha is a director of the company,a conflict of interest that should have been during the interview,” he said.
“Whereas EAPCC floated a tender No.EAPCCPLC/OT/340/2024 dated 23rd October 2024 for the provision of security services, M/s Brumec International Security Company Limited submitted a bid which included forged documents. It noted that Mr Obodha is a director of the Company.”
The board further exonerated itself from any blame saying by the time it submitted three names for consideration the board was not privy to the above red flags that have negative business implications as an NSE-listed entity.
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