Businessman Bruno Oguda Obodha, who had previously been appointed by President William Ruto to be managing director of East Africa Portland Cement Company (EAPCC), has now been charged with fraud.
Obodha was on Monday arraigned in Mavoko Law Courts, Machakos County, before Senior Principal Magistrate Derick Kuto to take a plea on six charges.
He was accused of forging documents with the intent to commit fraud on diverse dates in 2024.
Obodha, whose appointment was contested by the EAPCC board of directors and he was unable to take up the post, spent the weekend at Athi River Police Station cells after he was arrested for failing to appear in court on February 14, 2024, to take a plea in the case.
He faces charges of forging membership number for Blue Make International Security Company Ltd purporting it to be a genuine certificate of membership of Protective Security Industry Association.
Fake licence
He is also accused of altering a document with the intent to defraud contrary to section 375B of the Penal Code on November 11, 2024, at EAPCC, and making a document without authority contrary to section 375A of the Penal Code.
Obodha was also accused of making a fake licence No 2007534 to establish a radio communication station for Blue Make International Security Company Ltd.
His lawyer pleaded with the court for a lenient cash bail but the magistrate argued the gravity of the counts compelled him to release the accused on a Sh5 million bond and a surety of the same amount, or a cash bail of Sh2 million and one reliable contact person.
“The matter will be held in trial court on April 29, 2025, as earlier slated for further directions on when the matter will be heard,” the judge said.
The EAPCC board on December 28, 2024 rejected the appointment of Obodha by President Ruto a week earlier, citing the fraud cases.
The board wrote to the Cabinet Secretary for Industry, Trade and Investment raising integrity issues and conflict of interest on the appointment.
In the letter seen by The Standard signed by the board chairman Brig (Rtd) Richard Mbithi, the board indicated several emerging issues in reference to a circular dated April 20, 2022 issued by the Secretary to the Cabinet and Head of Public Service indicting the appointee was doing business with Portland and he has been involved in fraud.
“Whereas EAPCC appointed M/s Geoner Systems & Massel Real property on December 22, 2023 as a selling agent of portion of LR No.10424 which is currently ongoing, it is noted Mr Bruno Obodha is a director of the company, a conflict of interest that should have been (noted) during the interview,” the letter said.
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“Whereas EAPCC floated a tender No.EAPCCPLC/OT/340/2024 dated October 23, 2024 for the provision of security services, M/s Brumec International Security Company Ltd submitted a bid which included forged documents. It’s noted that Mr Obodha is a director of the company.”
The board further exonerated itself from any blame, saying by the time it submitted three names for consideration, it was not privy to the cited red flags that have negative business implications as a listed entity.
Following a board of directors meeting at the company’s office on November 22, 2024 it emerged that Mohammed Osman Adan was the best candidate during the interviews, scoring 88.15 per cent.
Net profit
Obodha emerged second with 64 per cent followed by Justa Mwangi, who managed 63.86 per cent. Mohamed was picked by the board in acting capacity on March 26, 2024 to succeed Oliver Kirubai after a stint of two and a half years.
Boardroom wrangles at Portland have seen five individuals rise to the helm of leadership albeit for short stints.
The company earlier this month paid a Sh48 million dividend to National Treasury and the National Social Security Fund, its first dividend since 2011, after posting a net profit of Sh1 billion in the year to June 2024.
The cement maker presented a Sh24 million cheque to the NSSF and Sh23 million to the Treasury during a ceremony at the Nairobi Securities Exchange trading floor on April 3.
“We are pleased to issue dividends to our shareholders. Their involvement with EAPC reflects continued trust and investment in the company’s success,” said chairman Mbithi when he presented the cheques.
“This milestone reinforces EAPC’s commitment to sustainable growth, financial resilience, and long-term shareholder value.”
