Shelter Afrique’s managing director James Mugerwa has resigned.
The MD’s resignation came barely a day after the firm’s board adopted a forensic audit report implicating him in financial impropriety. The report linked top managers to massive looting of funds through creative accounting and subprime lending at the company. The board had last week said it will punish those involved.
Mr Mugerwa is accused of dishing out sub-prime mortgages resulting in 59 per cent of Shelter Afrique’s $246.3 million (Sh24.63 billion) loan book being non-performing as at February 2016.
He is also accused of restructuring overdue loans by rescheduling such facilities to appear as if they are performing, thereby suppressing the volume of toxic mortgages
However, board of directors did not directly link his resignation to the suspected malpractices, but instead said that Mr. Mugrewa left to pursue his personal interests.
“The board of Shelter-Afrique has amicably accepted the resignation of James Mugerwa from the position of managing director with effect from February 1, 2017. The board wishes Mugerwa every success in his future endeavours,” said Shelter Afrique’s chairman Jean Missi.
Femi Adewole, who has been serving as director in charge of business development, has been appointed acting managing director pending recruitment of a new boss.
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