Amadi exit from Crown Paints turns focus on State officers

Corporate News

Chief Registrar Anne Amadi has resigned Crown Paints board saying her stay as a non-executive director and her new status as a State officer presented a conflict of interest. Photo/FILE 

By DAVID HERBLING

In Summary

• Her decision shines a new spotlight on State officers and public servants who continue to hold directorships in private companies despite the Constitution barring them.
• Controller of Budget Agnes Odhiambo and Transport PS Nduva Muli both sit on the board of financial services group Britam as directors.
• Salaries and Remuneration Commission chairperson Sarah Serem sits on the board of Mumias Sugar, while Agriculture PS Sicily Kariuki is a director at Commercial Bank of Africa (CBA)

The Chief Registrar of the Judiciary Anne Amadi has resigned from the board of Crown Paints

 

Ms Amadi communicated her decision at the paint maker’s annual general meeting Thursday, saying her stay as a non-executive director and her new status as a State officer presented a conflict of interest.

Her decision shines a new spotlight on State officers and public servants who continue to hold directorships in private companies despite the Constitution barring them from accepting any other gainful employment.

“Ms Amadi has communicated her wish to resign as a director following her appointment as Chief Registrar of the Judiciary and, therefore, will not be seeking re-election,” said Crown Paints chairman Mhamud Charania.

“She has retired from the board as it would be a conflict of interest.”

Ms Amadi follows in the footsteps of Public Service Commission boss Margaret Kobia who quit the board of tyremaker Sameer Africa barely three weeks after her appointment.

READ: Sameer appoints public service head to its board

Ms Kobia cited “exigencies of service” and need to comply with the law as reasons for her resignation.

However, Controller of Budget Agnes Odhiambo and Transport PS Nduva Muli both sit on the board of financial services group Britam as directors.

The Salaries and Remuneration Commission chairperson Sarah Serem sits on the board of Mumias Sugar, while Agriculture PS Sicily Kariuki is a director at Commercial Bank of Africa (CBA), a privately held mid-tier lender.

Other senior public servants who hold directorship positions in private companies include Treasury Financial Secretary Mutua Kilaka and the Export Promotion Council general manager Lucy Waithaka who chairs Eveready East Africa and sits on the board of Sasini.

The Constitution bars State officers from taking up any other gainful employment while in office, while public officers are expected to avoid taking positions that are in conflict of interest with their jobs.

“A member of a commission or holder of an independent office, unless ex-officio or part time, shall not hold any other office or employment for profit whether public or private,” states Article 250 of the Constitution.

READ: EACC mulls action on State officers in private companies

But some State officers and public servants have contested that directorship positions do not constitute gainful employment.