On page 40 of the Nairobi Star by Martin Forster, co-signed by Jerry Kiereini who have sat silently as their names and reputations are attacked without ever asking for their side of the story.
+ A strong, profitable, honest,corporately responsible firm, that regularly paid dividend to shareholders each year, quickly ruined by mismanagement sensationalism and greed of current regime.
+ Market share in Jan 2012 is 10.4% vs 17%-19% in 2010. Agritractors fell to 50% from 75% in the same period. CMC no longer market leader on large buses.
+ For the first time in 30 years CMC in 2011 made a loss. In five years prior to Forster's departure CMC averaged Kes 800m before tax with record being Kes 1.4b in 2008.
Top management of Land Rover are discouraged. Potential loss of this franchise added to the loss of the Ford franchise in Northern Tanzania, plus sharing of MAN heavy vehicles in Kenya and loss of Agri Tractor in South Sudan speak poorly of the present top management of CMC and care of the valuable asset - Franchises. The deal giving exclusive government sales to one man with a 6% commission is absurd.
I read with amusement that Lay's focus is to build a stronger CMC. After a year in the job, I have to wonder when is he going to start? When will the witch hunt stop covering up the truth that a good taxpaying company like CMC is being destroyed?Offshore AccountAn irrevocable trust set up 40 years ago in the days of exchange control to provide extra remuneration to expartiate staff. Since I took over as CEO, PK Jani, J Kiereni, others and myself have made efforts to have it dissovled so as to use the money to fund a training academy in Kenya.
All this was fully explained to Lay in April, 2011. The original file was purposely left in the safe as funds are company property. There was no "stumbling over a file" and the account was not a "secret".
South SudanWhat a surprise to read formation of this company was also a "secret" or "illegal". All decisions regarding registration of this company were made by the full board and published in the 2010 CMC annual report on page 7. Company remained dormant as it was easier to trade with South Sudan customers directly through CMC Uganda and Kenya.
CMC AviationAccording to some directors CMC aviation was "sold for a song". This is insulting. The board decided that Aviation should be sold as it was outside CMC core business. An asset valuation was conducted to the tune of Kes 86.3m. After 2 years of no good offers, the board approved a lower sales price of Kes 60m. I kept trying and eventually sold at full valuation price of 86.3m
I have been deeply saddened by the constant bad press directed at my past chairman, Jerry Kiereini. This gentle respectable mzee, who served the government with distinction, does not deserve all this nonsense. In CMC he was non executive and made no trading decisions. I was the one who ran the company and brought it to the level where CMC was admired by the public, its bankers, vehicle suppliers and proud staff. I now share their disappointment to see CMC as fodder for the press.
I take the liberty of asking Jerry Kiereini to join me in signing this document. God help CMC.
Martin ForsterCMC staff 1978-Mar 2011
Jerry KiereiniCMC Chairman 1984 to 2011
