Bill Lay's work permit revoked

The government has revoked the work permit of CMC Chief Executive, William Lay.

In a memo sent by Immigration Minister, Otieno Kajwang to the Director of Immigration Services, Mr Kajwang directed that Mr Lay’s work permit be revoked until CMC addresses its internal management problems.

“I hereby direct that you revoke his permit forthwith until they (CMC) sort out their internal management problems and until they advise us otherwise,” the Minister said.

But in a quick rejoinder, the motor dealers Group Chairman Mr Joel Kibe said Mr Lay’s permit revocation and subsequent deportation will undermine his evidence against Andy Forwarders thus causing CMC billions of shillings in losses.

“Arising from all the foregoing, we urge you to withdraw your directive, which is clearly illegal, unlawful and against national interest,” Mr Kibe responded to Mr Kajwang.

The revocation now hands Mr Muthoka victory in the battle for control of CMC with vicious board room wrangles that saw the firm get suspended from trading its shares at the Nairobi Securities Exchange.

The boardroom wrangles ensued after Peter Muthoka, whose company, Andy Forwarders is the single largest shareholder in CMC, was asked to step aside from CMC board of directors due to conflict of interest.

Muthoka had been accused of irregularly awarding lucrative tenders to Andy Forwarders. This is said to have cost CMC Sh500 million yearly.

The company had instituted a legal suit claiming over Sh2 billion from Andy Forwarders.

“This overcharge has had serious financial impact on the Company…. Andy’s overcharge to CMC was in excess of Sh500 million,” CMC Group Chairman Joel Kibe noted in a letter sent to the Minister for Immigration.