Continental Alarm Limited (CAL), a popular Information Technology company in Nigeria and its Chief Executive Officer (CEO) Mr. Okwy Okeke are not finding it rosy at the moment as the firm finds itself in the murky waters of mismanagement and indebtedness.
The company which started operations in January 2011 provides electronic surveillance and alarm services to top companies like Shell Petroleum Development Company (SPDC), Seplat etc, is at the verge of liquidation as it has reportedly never recorded profit since inception due majorly to the huge unapproved salaries the CEO, Mr. Okwy Okeke was collecting
According to information gathered, CAL owes Sterling bank a huge sum of money which the bank has been trying to recover since 2015 coupled with some ethical and management issues.
As part of the ethical challenges faced by the company, it was learnt that since inception, the Managing Director of the company, Mr. Okwy Okeke has never called for any form of board meeting or general meeting. It was alleged that all decisions made by the company were solely his without the consent of other board members. It was gathered that despite the shortcomings of the firm, Mr. Okeke never attempted to reposition or restructure the operations of the company in terms of cost- income ratio that can guarantee profit.
According to sources, Mr. Okeke “Rendered the firm technically insolvent with zero cash and bank balances as at 31st of December 2014”.
It was also gathered that the company’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 was revealed that the emolument of the Managing Director was not approved by the Board of Directors as no board meeting was ever conveyed by the company. 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 was 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 and the unpreparedness of the Managing Director to brainstorm on ways forward, some of the board members of the company are already pulling out.
One of the directors of the company, Engineer Obi Nwasike who spoke to newsmen through his lawyer, Barr. Ndubisi Chuks Nwasike said his company Chester Mead Associates Limited will be pulling out of the management of CAL.
“Chester Mead Associates Limited and Engineer Obi Nwasike will be pulling out of the management of Continental Alarm Limited as a result of poor management and unethical business practices.
“Engr. Nwasike through his company, Chester Mead Associates (CMA) bought 20% equity of the shares of CAL at the cost of $40,000.00 in the year 2012 after Engr. Nwasike left Shell Petroleum.
“He used his experience, business acumen, influence and reputation in the oil and gas sector to grow and attract businesses for the CAL from Shell, Seplat Petroleum PLC, NAPIMS and NNPC.
He revealed that in the usual course of his client’s relationship with CAL, whenever the company executes contracts with Shell using the services and expertise of CMA, payment by shell on such contracts are usually remitted to CMA’s account which is managed wholly by Engr. Nwasike adding that, CMA has so far remitted over N180, 000,000.00 (One Hundred and Eighty Million Naira as proceeds from the contracts from Shell Plc to CAL through Mr. Okeke.
Barr. Nwasike further revealed that CMA have remitted over N180, 000,000.00 (One Hundred and Eighty Million Naira as proceeds from the contracts from Shell Plc alone to CAL through Mr. Okeke and is bewildered that the company is indebted to Sterling bank.
“Despite the fact that Engr. Nwasike never received any form of compensation or emolument from CAL, the company still declares negatives and is even indebted. This can only be due to poor management system which my client can no longer be a part of. He is a reputable businessman and will not want anything to soil his good name” he said.