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Spotlight on Portland Cement in tyre bribery scandal

Saturday February 28 2015

The East African Portland Cement (EAPCC) is in the spotlight after being mentioned as one of the companies that received bribes in a tyre scandal.

The Capital Markets Authority said last week that it was willing to work with the government to establish the truth behind the allegations that the company obtained bribes before awarding tyre contracts.

“The Authority is in the process of  requesting for further information from US Securities and Exchange Commission (SEC) to help in the investigations, after which appropriate determinations will be made,” CMA said.

EAPCC bosses who headed the organisation between 2007 and 2011 will explain how the alleged bribery happened.

The scandal came to light last week after Goodyear Tyre and Rubber Company, which owned Treadsetters Tyres Ltd in Kenya, was ordered by the SEC to pay $10.7 million to the US Treasury after it was found liable for bribing public officials and private company bosses.

According to documents from the SEC, the bribes paid by Goodyear amounted to more than $1.5 million in Kenya, while another $1.6 million was paid in exchange for contracts in Angola.  

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The report implicates unnamed employees of the EAPCC, Telkom Kenya, Armed Forces Canteen Organisation, Kenya Ports Authority, Nzoia Sugar Company, the Kenya Air Force , Ministry of Roads and Ministry of State for Defence.

Ethics and Anti-Corruption Commission chairman Mumo said the commission was aware of the US ruling.

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