NSSF denies reducing stake in cement maker

Photo/FILE NSSF headquarters in Nairobi.  

By DAVE OPIYO dopiyo@ke.nationmedia.com

In Summary

• Allegations that the State reduced its shares in EAPCC by 3pc is mischief, says acting boss

The controversy over the ownership of East African Portland Cement Company took a new turn on Wednesday after the national pension provider denied reducing its stake in the cement maker.

The National Social Security Fund (NSSF) had not sold three per cent of its shares in the firm as earlier alleged, acting managing director Tom Odongo told a parliamentary committee.

He described as “mischief” the announcement at the cement maker’s annual general meeting last year that the government had reduced its stake from 27 to 24 per cent. (READ: Cement firm reports Sh88 million loss)

The parliamentary committee on Labour and Social Welfare, which is chaired by Belgut MP Charles Keter, was told that had the transfer happened as alleged, it would have cut the government shareholding in the cement company to 49 per cent since the Treasury had a 25 per cent direct stake.

The High Court is on March 16 expected to make a ruling on whether the cement maker is still a parastatal.

Mr Odongo explained that the confusion may have arisen from the fact that the giant workers’ pension scheme intended to sell three per cent of its stake in the cement factory.

He said the then managing trustee Alex Kazongo, who represented the fund in the cement maker’s board, shared this information with his fellow directors.

Mr Kazongo is on terminal leave pending the expiry of his contract later this month.

“This is why we say there was mischief here. There is nothing wrong with Mr Kazongo telling fellow directors of the intention to sell the shares,” Mr Odongo said.

Mr Kazongo is expected to be summoned by the committee to shed more light on the issue.

“Transfer of shares can never be done under the table. Due process must be followed. As at the time of the AGM, the transfer documents were under my custody,” the acting director said.

He said he had written to among others, the Capital Market Authority, the Auditor General, the Ministry of Industrialisation and others, refuting allegations that the transfer had taken place.