Investment

Bunge La Mwananchi Writes To CMA, Casts Doubts On The Suspicious Finance Of Ndeta To Buy Bamburi Cement By GIFDA

BY Soko Directory Team · November 25, 2024 04:11 am

KEY POINTS

"GIFDA claims a non-profit organization focused on human trafficking prevention but simultaneously presents itself as a major infrastructure financier. Yet no evidence exists of completed projects such as Port of Trajan, Port of Ostia, and Port of De Claudius, which it claims to have funded," said Francis Awino.

As the controversy surrounding businessman Benson Ndeta’s Savannah Clinker to buy Bamburi Cement, and the surprise announcement by Faida Investment Bank that the Global Infrastructure Finance and Development Authority (GIFDA) will finance the buyout, Bunge La Mwananchi has written a protest letter to the Capital Markets Authority (CMA), raising serious concerns.

According to the Bunge La Mwananchi, in a letter dated November 22, both the offer by Savannah Clinker and the credibility of GIFDA are questionable and that in the end, small shareholders within Bamburi Cement might miss out from the sale and their voices might never be heard.

“GIFDA claims a non-profit organization focused on human trafficking prevention but simultaneously presents itself as a major infrastructure financier. Yet no evidence exists of completed projects such as Port of Trajan, Port of Ostia, and Port of De Claudius, which it claims to have funded,” said Francis Awino, the President of Bunge La Mwananchi.

From the letter, the Bunge members are raising questions on the real faces behind the ownership of GIFDA given that none of the directors or management have been made public. The members say this raises serious transparency and integrity questions.

Bunge La Mwananchi also wanted to know why GIFDA had not provided all the required information as stated in the law. They also wanted to know the role of Faida Investment Bank in the whole transaction process and how it vouched for GIFDA without what is clearly a massive lack of due diligence.

The letter top the CMA also came after a surprise move of bank accounts belonging to Savannah Clinker from Stanbic Bank Kenya to NCBA Bank “which is a loud alarm bell.”

They also raised questions about the reputation of Benson Ndeta, the man behind Savannah Clinker. “Benson Ndeta has a history of mismanagement, including running two Kenyan cement manufacturers into distress.”

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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