Pan-African housing finance institution Shelter Afrique has announced the resignation of its Managing Director Mr. James Mugerwa with effect from 1st February 2017.
This is after Mr Mugerwa was accused of dishing out subprime mortgages to unqualified borrowers resulting in a steep rise in the company’s nonperforming loans to at least 59 per cent of Shelter Afrique’s $246.3 million (Sh24.63 billion) loan book. Under his management, Shelter Afrique was also accused of running a ponzi scheme as it has been borrowing to settle its debt instead of financing new investments.
“Mr Mr. Femi Adewole will take as the Acting Managing Director with immediate effect while Oumar Diop is the Acting Deputy Managing Director with immediate effect” the company said.
Related;
Moody’s downgrades Shelter Afrique rating, cites further downgrade
AfDB Increases Stake in Shelter Afrique to 22.7pct with USD8.2M injection
