Suspended Scangroup CEO Bharat Thakrar Opts To Resign Amid Investigations By Board

Bharat Thakrar
Bharat Thakrar. [PHOTO/ COURTESY]

Suspended Scangroup CEO Bharat Thakrar has resigned both as a CEO and a board member.

This comes a month after the board suspended him over alleged gross misconduct.

“The Chief Executive Officer, Mr Bharat Thakrar, has tendered his resignation as CEO and board member, which the Board has accepted. Mr Thakrar has also resigned a director of the Company’s subsidiaries and affiliates. The investigation into the allegations of gross misconduct and possible offences against the two executives will continue,” said the board in a statement.

Read: Revealed: Top Ten Shareholders Of The Scangroup

Mr Thakrar was suspended alongside the Chief Financial Officer, Mr Satyabarata Das on February 18.

The Chief Operating Officer Mr Alec Graham handed interim responsibility to head the firm, even as the firm kicks off efforts to recruit a new CEO.

“The Board will now commence the process to recruit a new CEO for the Company. In the interim, the Board has delegated authority to an interim Chief Operating Officer, Mr AIec Graham, so as to ensure the continued management of the Company, with the support of the Board and the senior executives of the subsidiaries,” added the statement.

Mr Thakrar has been accused of creting proxy PR agencies that he uses to steal funds from WPP ScanGroup by invoicing for non-existent works.

Read: ScanGroup CEO Bharat Thakrar suspended As Corruption, Sex Scandals Allegations Mount

Also, he has been accused of using junior female employees for sexual pleasures, and later paying them to keep silent which is against the company rules.

Business Times could not independently authenticate the allegations, which have been previously published elsewhere.

Thakrar is the founder of the Scangroup (which started as Scanad Group) in 1982,

The company first went public on August 29, 2006 in an initial public offering (IPO) that raised Ksh94 million.

Also, he has been accused of using junior female employees for sexual pleasures, and later paying them to keep silent which is against the company rules.

Business Times could not independently authenticate the allegations, which have been previously published elsewhere.

Thakrar is the founder of the Scangroup (which started as Scanad Group) in 1982.

The company first went public on August 29, 2006 in an initial public offering (IPO) that raised Ksh94 million.

In 2013, British multinational firm WPP acquired the controlling stake, which has grown to 56.3 percent through a mix of share purchases and folding some of its subsidiaries into Scangroup. Consequently, Scangroup rebranded to WPP Scangroup.

Thakrar is the biggest individual shareholder with 10.6 percent stake, which has with time reduced from 28.53 percent.

His ownership now has a market-to-market value of about Ksh250 million.

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