Nation Reporter
23 December 2011
Immigration minister Otieno Kajwang’ has reinstated the work permit of embattled CMC motors chief executive Bill Lay, allaying fears of the latter’s removal from his job and deportation.
In a swift change, Mr Kajwang’ said Mr Lay’s work permit remained valid on Friday, three days after he revoked it.
“I have considered your timely clarification over the issue surrounding the work permit and on the strength of legal advice from my technical officers, I wish to confirm the decision to inform Mr William Lay the work permit is unchanged and same remains valid,” read Mr Kajwang’s letter to the CMC’s group chairman Joel Kibe.
On Tuesday, the government had revoked Mr Lay’s permit, citing boardroom wars that ensued after he took over the helm of the motor dealer, which forced the capital markets regulator to suspend its shares from trading at the bourse.
The decision to revoke that permit was protested by Mr Kibe who argued that it would result into Mr Lay’s deportation in turn destroying his evidence against Andy Forwarders in what he says will cause CMC to lose billions of shillings.
“Arising from all the foregoing, we urge you to withdraw your directive which is clearly illegal, unlawful and against national interest,” Mr Kibe noted in the letter to Mr Kajwang’ following the revocation order.
The boardroom wrangles ensued after Mr Muthoka, whose firm, Andy Forwarders is the single largest shareholder in CMC, was asked to step aside from CMC’s board over conflict of interest.
Mr Muthoka had been accused of irregularly awarding lucrative tenders to Andy Forwarders, a firm he is associated with.
This is said to have cost CMC Sh500 million losses every year. The company had instituted a legal suit claiming over Sh2 billion from Andy Forwarders.
“This overcharge impacted on the Company…. Andy’s overcharge to CMC was in excess of Sh500 million,” Mr Kibe told the minister.
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