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However news of the new partnership seems to have taken CMC by surprise, with the auto dealer terming the decision by JLR as "acting in utmost bad faith./FILE

Kenya

CMC loses Land Rover dealership

However news of the new partnership seems to have taken CMC by surprise, with the auto dealer terming the decision by JLR as “acting in utmost bad faith./FILE

NAIROBI, Kenya, Dec 6 – Auto dealer CMC Motors has lost its long-standing dealership for Land Rover, after Jaguar Land Rover (JLR) announced a new partnership in Kenya with Thai firm RMA group.

In a statement issued on Thursday, JLR said RMA Group “brings a broad range of expertise and experience in the motor industry particularly with the Jaguar Land Rover brand, which they currently represent in other global markets.”

However news of the new partnership seems to have taken CMC by surprise, with the auto dealer terming the decision by JLR as “acting in utmost bad faith.”

In a statement released on Thursday as well CMC, whose contract with JLR expires in February 2013, said “the decision was not only highly unprocedural and mischievous, but it was also in total disregard of the tremendous progress that had been made by CMC towards meeting the demands made by JLR.”

A spokesman for the firm further went on to say that CMC met all its financial obligations and continued to order products including spending over $50,000, at JLR’s request and attending overseas business functions.

The investigations and enquiries into the misappropriation of funds belonging to CMC, seem to have put off JLR which reacted by terminating a business relationship that has been in existence for over 30 years.

Late last year allegations had surfaced of two former CMC directors having illegal offshore accounts containing hundreds of millions of shillings in Jersey but CMC argues JLR was complacent.

“It is common knowledge that serious allegations of misappropriation of funds belonging to CMC have been made and that JLR was involved in the movement of those funds to Jersey bank accounts. It is curious that as soon as the said scheme was unearthed, JLR reacted by purporting to terminate a relationship that has been in existence for over 30 years,” CMC argued.

“It is difficult to escape the conclusion that the illegal actions of the previous (CMC) management team and board were acceptable to JLR and that it is unhappy with the steps taken by the new management and board to seal all loopholes used to siphon company funds,” added the statement from CMC.

The management at CMC has however assured that it is committed to meeting and observing its contractual obligations and expects its partners to do likewise, as it discusses options available to protect the interests of the company.

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