Shares of East African Portland Cement (EAPCC) have been suspended from trading on the Nairobi Stock Exchange for 60 days by the Capital Markets Authority, The Standard of Kenya reports.
The suspension is to protect investors from the on-going boardroom dispute at the Kenyan cement producer which began on 23 December 2011 with the suspension of MD, Kepha Tande, and board members over allegations of malpractice. This resulted in a stand-off between EAPCC management and stuff and operations were shut for another day. It also emerged that the acting Industrialisation Minister Amason King would be challenging the reinstatement of suspended company directors at the Court of Appeal.
On Monday riot police stopped workers entering the factory to prevent any violence after employees threatened to block the company’s top management from resuming duty.
Tande and Karbolo had planned to return to the company’s offices in Athi River for the second time on Monday after a court overturned their suspension by Kingi.
But they didn’t show up at the EAPCC’s headquarters where angry employees were camped with police not allowing any vehicle or person to approach the gates.
"The ministry sought to suspend us on alleged malpractices, which have not been disclosed to us. Our attempts to have the matter sorted out by an independent investigation have fallen on deaf ears. We had to resort to the courts," said Tande.
In the meantime, Kingi and his Permanent Secretary Karanja Kibicho on Friday filed a notice on their intention to challenge the judge’s decision to reinstate the officials.