Shelter Afrique MD resigns as board adopts report faulting him over bad loans

Mr James Mugerwa, Shelter Afrique’s managing director. PHOTO | FILE 

By DAVID HERBLING, hdavid@ke.nationmedia.com

In Summary

• Mr Mugerwa's exit comes after Tuesday’s board meeting where directors adopted a forensic audit report that fingered him over subprime lending and creative accounting.
• The Deloitte forensic audit report had recommended disciplinary action against Mr Mugerwa on grounds of conflict of interest, staff harassment, and blowing up $7,845 (Sh784,500) in advances he couldn’t account for.
• Femi Adewole, who has been serving as director in charge of business development, has been appointed acting managing director pending recruitment of a new boss.

Shelter Afrique managing director James Mugerwa has resigned from office.

Mr Mugerwa's exit comes after Tuesday’s board meeting where directors adopted a forensic audit report that fingered him over subprime lending and creative accounting.

“Mr Mugerwa offered to resign in order to pursue other interests. The Board wishes Mr Mugerwa every success in his future endeavours,” Shelter Afrique said in a statement.

Femi Adewole, who has been serving as director in charge of business development, has been appointed acting managing director pending recruitment of a new boss.

READ: Shelter Afrique board to face CMA ahead of shareholders meeting

ALSO READ: European bank starts own probe on Shelter Afrique

Mr Mugerwa took office in August 2014 after the acrimonious exit of Alassane Ba.

The Deloitte forensic audit report had recommended disciplinary action against Mr Mugerwa on grounds of conflict of interest, staff harassment, and blowing up $7,845 (Sh784,500) in advances he couldn’t account for.

READ: Deloitte says Shelter Afrique whistleblower breached rules