CMC’s managing director unleashes fresh accusations

Oct 28th, 2011 | By | Category: Media Release

Embattled managing director of motor dealer CMC Holdings Mr William Lay has unearthed fresh accusations against the camp led by ousted chairman in an effort to gain support from shareholders ahead of an Extra Ordinary General Meeting next month.

General Motors East Africa limited managing director William Bill Lay

In a letter to shareholders, Mr Lay now says the new management stumbled upon files showing that a former director of the company shipped over Sh240 million from the company’s books to offshore accounts.

“After taking over as the group managing director of the Company on 2nd May, 2011, the Management stumbled on various files including one marked “upon my demise, please give this to the group chairman” written in the handwriting of a former director.

Upon reviewing the files, we discovered that it related to various offshore bank accounts,” reads the letter in part.

“The files indicate that certain payments were made to among others, a former director of the company. One of the bank accounts has funds in excess of GBP 1.4 Million (over Sh240 Million) and it appears from the files that substantially more money were stashed in other offshore bank accounts,” the letter said.

Mr Lay has also accused the former management for increasing salaries for their cronies and taken issue with the salary earned by the former Chief Executive, Mr Peter Muthoka.

“It must be understood that despite being a substantial shareholder of the Company, Mr Muthoka lost all interest in the Company’s business in the face of the threat to Andy’s logistics services contract.

This can be simply explained on the basis that based on last year’s profits of the Company, he earned more than the entire Company considering that the Company made a profit of Sh400 Million against his over charge to the Company in excess of Sh500 Million,” the letter added.



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