Continental Alarm Limited (CAL), a popular Information Technology company in Nigeria is presently experiencing serious boardroom crisis as its Chief Executive Officer (CEO) Mr. Okwy Okeke is accused of mismanagement and unethical practices according to an inside source.
Mr. Okwy Okeke, CEO, Continental Alarm Limited (CAL)
The source who prefers to remain anonymous said the Mr. Okwy Okeke has been involved in shady deals at the detriment of the company while accruing to himself an outrageous amount of money as monthly salary.
He explained that the activities of Mr. Okeke and his body language towards the development of the company since inception in 2011 have proved to be unprogressive and selfish.
“How do you describe a CEO who approves of a payroll of about 86.2% of the turnover of the whole company with his salary standing at $1,020,000 per annum despite the fact that the company as at December 2014 recorded zero balance and is indebted to Sterling Bank to the tune of N5million? It is either he is ignorant of simple management and business principles or plain selfish.”
“This same CEO has never called for general meeting or board meetings where issues regarding the company can be discussed. From my findings, board members have been unaware of the financial standing of the company because Mr. Okeke has refused to be transparent in running the company. All decisions regarding the company are taken by him without consulting the Board of Directors. See where that has landed the company.” He lamented.
The source further revealed that one of the board members of the company, Mr. Obi Nwasike recently pushed for a board meeting to settle the management crisis rocking the company but his effort was frustrated by Mr. Okeke.
Our source further disclosed that all decisions made by the company were solely that of Mr. Okeke without the consent of other board members attempted to reposition or restructure the operations of the company in terms of cost-income ratio that can guarantee profit.
According to him, Mr. Okeke has “rendered the firm technically insolvent with zero cash and bank balances as at 31st of December 2014”.
Investigations reveal that CAL’s payroll amounted to N65.1m with a turnover of N75.5m, which gives about 86.2% of the turnover dedicated to payroll alone with the salary of the CEO standing at $20,000 monthly and accrued to $1,020,000 as at December 2014 when the firm recorded zero balance.
It also revealed that the outrageous emolument of the CEO was not approved by the Board of Directors as no board meeting has ever been conveyed by him. The board members were rendered unacquainted with the activities of the company while decisions were made solely upon the discretion of Mr. Okeke.
According to our source, “as at 8th of October, 2015, the total indebtedness on CAL’s account to Sterling Bank is N5,253,109.34 (Five Million, Two Hundred and Fifty Three Thousand, One Hundred and Nine Naira, Thirty Four Kobo.)
Information gathered further reveal that as a result of all the mismanagement issues the company is facing, some of the board members of the company are already pulling out.