Cement firm reports Sh88 million loss
The full effects of last year’s management chaos at East African Portland Cement Company became clear on Thursday with the firm announcing a Sh88.1 million loss for the half-year ending December 2011.
In 2010 it had reported an after tax profit of Sh792 million in the same period, which fell by 111 per cent in 2011. Management has blamed increased competition and a reduction in sales for the poor performance.
The firm failed to operate in the last two months of 2011, following boardroom wrangles that turned into full industrial action by workers, paralysing all operations.
“The unexpected major plant breakdown in November 2011 and disruptive events of December 2011 led to the reduced growth momentum experienced in the period under review,” said the statement signed by company secretary JLG Maonga.
The firm came under the spotlight in November last year, amid allegations of irregularities in its tendering procedures between August and November 2011, when it procured goods worth over Sh1 billon without authority from the Public Procurement Oversight Authority.
