WPP-Scangroup Plc board of directors has suspended the Chief Executive Officer, Mr Bharat Thakrar and the Chief Finance Officer, Mr Satyabrata.
In a statement, the company said the move was to allow for an investigation into allegations of gross misconduct and possible offences in their capacity as senior executives and employees of the Company.
The Board has delegated authority to an interim Chief Operating Officer Mr Alec Graham to ensure the continued management of the Company with the support of the Board and the senior executives of the Company’s subsidiaries.
Alec Graham has over 25 years experience in the advertising and communications business working with various companies in the WPP plc group.
“In due course the Board will consider the appointment of an interim chief financial officer for the Company,” the company said.
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.
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.