“We strongly believe that the decision to wind up the company was in bad faith with hidden motives; the company was strong enough to continue with its operations but the directors had other motives,” the four shareholders said.
Mr Martin Malinda, Mr Kioko Musau, Mr Peter Kamba and Mr Richard Mangeli said by the end of 2010, the company had more than 100 buses in operation.
“But within 18 months the directors had sold 70 per cent of the buses without informing shareholders,” said Mr Kamba the group’s spokesman, at a meeting in Machakos town on Saturday.
He added: “Among assets disposed off were buildings valued at more that Sh500 million.”
The vowed to institute civil proceedings against the directors to shed light on the circumstances surrounding the collapse of the once giant public transport company.
Mr Kamba said they would resist any attempts by the directors to sell the only remaining property of the company — a building in Machakos town that housed the bus firm’s regional offices.
“We have been informed that the price they are quoting is Sh9 million yet the market price for the same is Sh19 million,” he stated. The shareholders want the government to investigate claims that company funds were transferred out of the country.
“More than 600 employees lost their jobs. Shareholders too also lost dearly,” the four said, adding that they were willing to revive the company without the former directors.
Transportation in East Africa suffered a major blow after Akamba Bus Company suspended its operations last year. Passengers, mostly traders and students, were forced to find alternative means after the company closed shop due to financial problems. -Daily Nation
