Shelter Afrique’s Managing Director Femi Adewole has resigned. The Nigerian national reportedly left office on 30th June with Mr.Kingsley Muwowo formerly the CFO immediately taking over in acting capacity.
Mr. Adewole was appointed acting Managing director and later current M.D following the resignation from office by James Mugerwa last year.
The firm now says that the probing process for a new MD is complete awaiting the announcement for a new managing director.
Shelter Afrique has been battling allegations of subprime lending and accounts manipulation. A Deloitte audit report had recommended disciplinary action against Mr. Mugerwa on grounds of conflict of interest, staff harassment and Ksh 784.5 thousand he could not be accounted for. Multiple queries had been raised concerning inadequate loan loss provision, queries on loan swaps for non-performing loans, and complaints on discrepancies on Shelter Afrique’s loans software platform.
European Investment Bank was also carrying out its own investigations after lending the firm €15 million (Sh1.65 billion) for onward lending to support affordable housing ventures.
The capital markets Authority had in the same month summoned Shelter Afrique directors for a crisis meeting to discuss plans to raise capital for the firm. The Pan-African mortgage financier is currently carrying out finance and debt restructuring with the search for an independent director who would provide technical and financial and other independent expertise that begun in January.