THE PLOT THICKENS:

Bill Lay has published an open letter to shareholders in the Daily Nation[p22].

Key point is that they suspect Andy Forwarders have been overcharging CMC about 300m-500m per year! Cumulative figure for last 5yrs is about 1.5b-2b.

An audit is on the way to establish the exact state of affairs.

Contract with Andy to be terminated today!

Did some one say that Bill is Mr Efficient?

No wonder the share has been on the rise.... seems the rise has little to do with Muthoka's reported buying spree - actually, there has been quite some serious foreigner participation.

@Wendz; your opinion was spot on.

Even though I have been in the company for quite a long time, I was always suspicious of having one guy as CEO (Forster) for so long.

Nevertheless, the returns have been good. My initial investment has been more than repaid by dividends alone. And if Bill continues this way....

ESOP shares are minimal in the scheme of things. We are talking of someone who is:
1.The largest supplier services to CMC.
2.A big shareholder(and Chair of BoD)@ CMC
3.A large customer of CMC
This is also a public company. Even if it were private transactions between CMC and Andy would raise the red flag to a tax authority.

Funky-nilisema kunakitu. Former directors (one a supplier) have been siphoning CMC cash. To? Jersey

This Company is going to dogs...are they going to witchhunt Mr Muthoka like that? Stay away from companies with governance issues...a few companies come to mind!

Because of the its primary market (GoK, upper class, settled and aspiring middle class), CMC is potentially a very decent share. I guess guys are buying in on confidence that Lay will lay the ghosts of corruption to rest.