The claim comes after Uganda Clays board led by Chairman Eng. Martin Kasekende on Tuesday announced it was firing top management of the company, without divulging details on the genesis of the decision.
A former employee of Uganda Clay’s Limited has said that the board ignored his call for the investigations of the company operations for possible fraud.
The claim comes after Uganda Clays board led by Chairman Eng. Martin Kasekende on Tuesday announced it was firing top management of the company, without divulging details on the genesis of the decision.
The Managing Director George Inholo, Head of Procurement Nelson Kizza and head of human resources Peter Kiwanuka, were let go at once, according to the company announcement. Jacqueline Kiwanuka, the head of finance, was then appointed acting Managing Director.
Eng. Habib Ssembatya, a minority shareholder who worked with the company for 16-years told URN on Wednesday that he had written to the board raising a red flag on the operations of the company.
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In a letter dated July 26, 2019, which URN has seen, Ssembatya asked the board to investigate the sudden resignation of two top managers – marketing and Audit manager and other employees in reference to financial loss.
The letter also said there was a possible conflict of interest of the company secretary or the lawyer of the company in procurement processes. He says he never received a reply. But the departure of the top management, in a style, that the previous management left at, shows there is something wrong.
Andrew Muhimbise, another shareholder, said he takes the firing of management with a pinch of salt. He said if the company was to improve, it needs a total overhaul with the board leaving too.
Last October, at least five employees at Uganda Clays Kamonkoli factory in eastern Uganda, Budaka district were suspended from the company. Their suspension was thin on details.
In its financial reporting of 2017 and 2018, Uganda clays shows it had made marginal profits, an improvement from earlier losses that the company was registering. The company income was reported at 30 billion Shillings in 2018 up from 27 billion Shillings in 2017. This had given the impression that the company was on the road to recovery.
However, this was not to be because the company had not made more money from its products. Instead, Uganda Clays had gotten pay from Uganda National Roads Authority (UNRA) for the Kajjansi land that the authority had taken over during the construction of the Entebbe Expressway. Also, it sold some land to National Medical Stores
“The major lines of production for the company were still not making money. You sell company land and say you made profits. The company is losing property,” Ssembatya said.
In January, National Social Security Fund (NSSF), the majority shareholder in Uganda clays, announced it wanted to sell its stake in the company. Uganda Clays still owes NSSF 23 billion Shillings.
In order to help the company recover, NSSF decided to put the debt on hold and not charge the company interest going forward.
Uganda clays is still operating the expensive Kamonkoli. The company has to compete with cheaper options like versatile iron sheets that look like their roofing tiles.
To rebound, Uganda Clays needs much more than debt forgiveness. Stead leadership with good corporate governance will play a major role. Uganda Clays is the oldest roofing tiles making company in the country.
Story by Mwesigwa Alon
