FEP woes intensify as CEO Korir fired after serving for 2 years, Kithaka returns - Kenya Satellite News Network
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FEP woes intensify as CEO Korir fired after serving for 2 years, Kithaka returns

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Diaspora-backed investment firm FEP Holdings has sent chief executive Maurice Korir packing nearly two years after tasking him with restructuring the chama.

Previously long-serving founding chief executive John Kithaka has reoccupied the position. Mr Kithaka quit in October 2016 following Mr Korir’s promotion.

Mr Kithaka had been at the helm of the financially haemorrhaging investment group for more than a decade while Mr Korir was the chief operating officer.

“FEP Holdings Ltd board of directors wishes to announce the resignation of the chief executive officer, Mr Maurice Kimutai Korir effective March 8, 2018,”read a statement.

“The board has appointed Dr John Muchira Kithaka to the position of the group executive director with immediate effect.”

Maurice Korir. PHOTO/COURTESY.

The firm’s board linked the management shake up to need to conform to a changing investment landscape.

“The board wishes to assure shareholders and stakeholders, both local and in diaspora, that the corporate leadership changes are aimed at aligning and strengthening the group’s organisational structure to ensure we meet evolving investor expectations,” it said.

The Sh4.4 billion asset chama has faced a string of troubles in the last few years.

Founded in 2002, it has a membership of 70,273 investors, with a significant stock held by Kenyans residing in the UK and US.

FEP’s multiple projects including a planned 146-bed hotel in Sagana, Kirinyaga County, have missed completion deadlines for lack of capital.

Mr Kithaka will be charged with finishing stalled projects and revamping the chama. Its planned rights issue collapsed while plans to acquire a majority stake at Credit Bank, controlled by the Nyachae family, also failed.

The Central Bank of Kenya in 2016 declined FEP’s bid to take control of the bank after raising queries on the chama’s share register and ability of its financial muscle to adequately capitalise the small lender.

The banking sector regulator had raised similar ownership and capital concerns early the same year in denying the investment group a licence to operate a deposit taking microfinance bank, despite a temporary approval.

FEP was rocked by fraud in 2016 and hired an asset recovery agent to pursue six former senior managers and confiscate Sh67 million allegedly stolen from the organisation.

A forensic audit on the investment group’s operations by KPMG had revealed then that half a dozen top executives were discreetly siphoning cash meant for projects and investments. Prior to joining FEP in 2014, Mr Korir was chief operating officer at publicity firm Ogilvy.

-Business Daily

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Africa

PwC man who ‘fell’ from 17th floor mourned his mother for a year, cousin reveals.

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BY OLIVIA MUNGWANA

Friends, family and colleagues are painting different portraits of Stephen Mumbo,  the Price Waterhouse Coopers Forensic manager who fell from 17th floor of Delta offices which house the international audit firm.

Mr Mumbo was born in 1977 ,was the last born of two girls and three boys in Kisumu Nyamasaria, a hot, dry and humid area where black cotton soil sucks life from a crop.

Only determined weeds survive.  In the absence of his father, Arthur Waore Mumbo, an administrator at Kemri Busia who died in 1992, it was his mother, Mrs Waore, a teacher at Nyamasaria Primary School, who had the most influence in his life.

But after his father’s death, Mumbo was brought up in Alupe, Busia, by his uncle Mzee Obura, a doctor at Kemri in Alupe.

Fred Obura, a cousin, recalls that the father died when Mumbo was joining form one and his family took him.

But “when his mother died five years ago,” recalls Fred “he snapped in the office and couldn’t work. He took a one-year unpaid sabbatical to mourn his mother.”

Indeed, that Friday morning when he committed suicide, it was the huge photo of his mother in his bedroom that he last saw when he slept, and the first he saw when he woke up.

Fred attended St Paul’s Amukura with Mumbo who was ahead of him but he recalls that Mumbo was the class prefect in form one and two and by form three and four, he was the library prefect.

“Mumbo was deeply religious and never missed church,” says Fred. Other schoolmates, too, had their own recollections.

St Paul’s Amukura was an academic giant in Busia County where it was founded by Catholic priest Father Louis Okidoi in 1962. Mumbo was the shy brain box with an awkward gait.

In the school’s achievement board, mounted proudly in the administration block, Mumbo narrowly missed being immortalised by one point. It was A- in one subject, Kiswahili, that did him in.

Charles Ekirang, his classmate, says Mumbo was expected to succeed in life since “in an age where we chased girls we nicknamed Marios, from St Mary’s Amukura, Mumbo was chasing after whoever had the key to the library.”

Caleb Etyang, a year ahead of Mumbo, says the studious boy “wasn’t a guy to go for sports or drama outings, he was much more at home in the school and the library.”

He recounts a new, beautiful teacher who drove the boys crazy when she reported, but Mumbo was unmoved with her curves.

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Man who defrauded Mungatana charged

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A Chadian national has been charged with defrauding former Garsen MP Danson Mungatana of Sh76 million on pretext of investing the cash in the oil industry.

Appearing before Nairobi Chief Magistrate Francis Andayi, Mr Abdoulaye Tamba also faced four other counts of being in possession of Sh960, 120,000 in fake currency.

He has also charged with defrauding a trader, Mr Makau Muteke, of Sh700,000 on the same pretext of investing them money on his behalf.

Mr Tamba denied the fraud charges and has been released on a cash bail of Sh3 million. The case will be heard on November 29 this year.

FRAUD SCHEME

Following reports on social media that he had been conned by a witchdoctor, Mr Mungatana opened up the con scheme.

He said he fell prey to an investment scheme which was created by foreigners in cohort with local prominent leaders.

The former MP said the proprietors of the scheme involved in buying and selling of oil appealed to deep-pocketed Kenyans to invest with them on promise of getting huge profits in return.

“We received profit in the first and second rounds, but the third time the proprietors of the scheme disappeared with our money,” said the former assistant minister without revealing the amount he lost.

Nation.co.ke

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Africa

Kim Kardashian, Kanye West Have Breakfast With President Yoweri Museveni

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Rapper Kanye West and his wife Kim Kardashian had breakfast with Uganda’s President, Yoweri Museveni on Monday morning at State House, Entebbe.

The couple were flown from Chombe Safari Lodge in the Uganda Peoples’ Defence Force helicopter, to State House

Kanye West

It is not yet clear what was discussed in the meeting as Presidential Press Secretary Lindah Nabusayi declined to divulge details to one of Uganda’s dailies, promising to share them soon.

“You will have them later. We are working on it,” she said.

President Museveni however shared that their meeting bore a fruitful discussion with the duo on how to promote Uganda’s tourism and arts.

Kanye and Kim arrived in Uganda on Friday with their eldest daughter, North. They will be in Uganda until October 19.

ya

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