Listed motor dealer CMC has sued former chairman Peter Wambua Muthoka afresh and is seeking compensation for the Sh1.5 billion he allegedly defrauded the company through inflated contracts with logistics service provider Andy Forwarders, which he owns.

At least 30 victims have approached the Kenyan embassy in Tokyo for assistance in recovering money they paid to phoney companies for delivery of cars to Mombasa only for the alleged exporters to disappear after receiving payments.
“This embassy has recently been inundated by requests for intervention from many Kenyans.

Introduction of online services by used car exporters and auction halls in Kenya Car Bazaar Ltd. has made it much simpler, faster and cost effective. But the risk of frauds is the biggest fear while dealing through the internet. Sometime fraud dealers have attractive websites, very good stock on very low prices display on their website. The offer attractive discounts or very low price to trap importers or individual buyers.

The capital markets regulator on Monday stoked the management flames at motor dealer CMC Holdings with a fresh order seeking to send the entire board packing and replace it with a new one. CMA said it would appoint a caretaker board to replace the warring directors – a move that would effectively throw out the key protagonists in the four-month long boardroom battle that began in September.

Motor dealer CMC Holdings lost more than Sh1.1 billion in inflated charges paid over five years to a transport and logistics firm owned by CMC board member and former chairman Peter Muthoka, a forensic audit by Price water house Coopers (PwC) has found.

The Capital Markets Authority has extended the suspension of CMC Holdings Limited from trading at the Nairobi Securities Exchange (NSE) for another 21 days.

The extension takes effect on February 3 when the initial 90-day suspension expires. While allowing the board of directors an opportunity to resolve disagreements at CMC, the Capital Markets Authority intervened by suspending trading of the company’s shares on the NSE to enable the investing public an opportunity to get a true picture of affairs at the auto-dealer.

The suspension of CMC shares from trading at the Nairobi Securities Exchange (NSE) is set to be extended beyond the January 26 deadline after the regulator announced that findings of an ongoing forensic audit will be released in the first week of February.

IMMIGRATION minister Otieno Kajwang’ has revoked the work permit for Bil Lay, the chief executive of listed motor company CMC. An in-house memo signed by the minister dated 20 December 2011 to the director of immigration services directed that Lay’s work permit be withdrawn until boardroom squabbles at the motor dealership were resolved.

Increased demand for buses and trucks helped General Motors East Africa (GMEA) overtake Toyota Kenya as the country’s largest car dealer by unit sales in the 11 months to November. Data from the Kenya Motor Industry Association (KMI) shows that GMEA’s market share increased to 25 per cent at the end of November from 21 per cent as at June. This saw GMEA relegate Toyota to second place with a market share of 24 per cent from 25 per cent in June, piling pressure on the Japanese firm that has just replaced its CEO.

Toyota Kenya is set to hire a new Japanese managing director following the resignation of South African Hylton Bannon just two years after his appointment to the helm of the auto dealer. The firm said in a paid advertisement notice that Mr Bannon quit to join his family in Cape Town, but sources at the firm [...]