alexa Kiereini defends himself over CMC funds saga scandal - Daily Nation

Kiereini defends himself over CMC funds saga scandal

Wednesday May 16 2012

Former CMC chairman Jeremiah Kiereini. Photo/FILE

Former CMC chairman Jeremiah Kiereini. Photo/FILE 

By PAUL WAFULA [email protected]

Former CMC chairman Jeremiah Kiereini has come out to defend himself against involvement in the troubles that have threatened to bring down the car dealer.

In a press statement in the dailies, Mr Kiereini who came out for the first time in public since the scandal at CMC Holdings broke last year, distanced himself from the day-to-day operations of the company including the offshore account.

“Establishment of the Corival bank account was done by Mr Paul Benzimra, a son of the then CEO, Mr Jack Benzimra and a Mr Stanley Lewis,” read the statement published on Tuesday and signed by him.

It is not clear why he issued this statement so late after the two forensic reports on the firm had been done and their findings already released to the motor dealer’s shareholders.

An audit done by Mr Webber Wentzel, the South African auditor that the Capital Markets Authority hired to look into the troubled motor company, found that it had illegal offshore accounts worth more than Sh250 million.

The money was allegedly accumulated in concert with suppliers who overcharged CMC on invoices and wired it back to the duo and other senior employees in a span of 26 years.

The forensic audit mentioned Mr Kiereni as one of the signatories of the secret offshore accounts, allegations he is now fending off.

“There is absolutely no truth in the allegation that I was party to the establishment of the Fairvalley Trust. I was informed about it by Mr Jack Benzimra when he was CEO because it had already been established before I joined CMC,” the statement read.

The businessman and long-serving board member of the car dealer argues that the current directors, board chairman, and chief executive bear the same responsibility.

He was in the company for 27 years before resigning in March last year.

He also fought reports that his leaving of major firms that he has been serving as a board member were related to CMC.

“It is inaccurate, malicious and a violation of my basic human rights to speculate on my suitability to serve on the board of any company, public or private,” he said.