Forbes Magazine, estimated the net-worth of Vimal Shah’s father, Bhimji Depar Shah, then aged 82, together with Vimal Shah, then aged 55, and Vimal’s younger brother Tarun Shah, at US$700 million, making them the 33rd wealthiest individual or group in Africa in 2014. Vimal was then at the top of his game being one of the richest Kenyans with a positive image of the company. With time trouble came knocking.
Before the advent of social media, many people with questionable characters used to do PR all over media making Kenyans believe that they were angels.
But the advent of social media has debunked all this, holding corporates responsible for their ills since the Kenyan media can’t expose some of these ills because some of these corporates are their clients.
For instance the Safaricom Cheza games Saga that the Kenya Insights Team wrote about a few months ago trended on social media with Safaricom CEO Bob Collymore refunding Billions. What shocked many kenyans was the silence from the media poseurs who decided to give the Multibillion Saga a deaf ear yet the role of media is to educate Kenyans and report on all these matters of public interest.
Social Media is a force the reckon with and what we are witnessing is ” Digital Disrupt ” that is killing the old media like a cancerous infection.
The truth is that as media hides or struggles to protect their favorites, social media and vocal blogs are taking charge, controlling the narrative and replacing the old media. It has now become a norm for the media to break stories blogger broke many years ago.
A Classic Study case of the Social Media Impact can be traced to Bidco Africa, the edible oils industry whose embattled CEO Vimal Shah has been forced to resign due to many scandals and negative social media publicity that has hurt the Companie’s bottom line.
Bidco Oil Refineries chief executive officer Vimal Shah is a man under siege and has always been accused of economic sabotage as well as human rights abuse. To show how bad things were in his tenure as CEO, he once had to pull out of a prestigious London Investment Conference after one of the delegates whispered to him that protestors were planning to demonstrate against him over his poor human rights record.
Sources say he took the first flight back to Nairobi to avoid being embarrassed. The demos went on as planned despite his absence with demonstrators carrying placards as they shouted “down with Vimal Shah” and “Stop Bidco” as conference participants arrived at Claridge’s, the 5-star London hotel where the conference took place.
This prompted the conference’s organizers to drop his name from the list of the main speakers. One of his senior staff who had accompanied him was at pains to explain his absence at the conference.
Vimal is a well-known shrewd businessman who has been involved in a number of scams. Another demo was also held in Nairobi along City Hall Way. Motorists were blocked as demonstrators bayed for the tycoon’s blood. One placard read, Vimal, a Wife Snatcher.
Vimal is accused of being a slave driver. His firms underpay poor farmers, exploit those he has employed and suppliers and allegedly evades taxes running into billions of shillings.
KRA has been demanding Sh702 million tax. The taxes have accumulated to Sh1.3 billion with at one time KRA threatening to attach bank accounts and properties. This was also subject to social media campaigns, and the office of the Kenyan Ombudsman once wrote a Letter to KRA Demanding an explanation from Njirahini on why Bidco had not paid arrears.
Poor working conditions are also the order of the day at Bidco. The workplace is full of danger. Bidco staff have been suffering for years over poor working conditions and sick pay as well as the firm’s poor safety record. Staff says employees are fired at will and without following laid down procedures, and those who demand better pay or good working conditions are intimidated and threatened with summary dismissal. A worker once died in a Bidco store and court ordered Vimal to pay the Vimal one million Shillings leading to many questions from Kenyans who wondered how human life could be that cheap.
Bidco workers describe Vimal as a heartless person. Money to National Hospital Insurance Fund and National Social Security Fund is not remitted as prescribed; it is claimed. To complicate matters, workers are paid on a contract basis.
The hygiene standards of Bidco products are being questioned as to whether they meet the standards required. Workers who have had accidents at their workplace are not compensated.
A woman working at the boilers is said to have received severe burns, but the family’s efforts to get compensated has hit a snag. At one time, Shah is said to have chased her parents from his office calling them stupid poor Africans.
He is accused of using abuses on Africans. Due to his low opinion to Africans, Bidco has budgeted and allocated less to social responsibilities. As a result, there is now a move to boycott the company’s products. Staff members do not enjoy education scholarships for their children.
The clinic at the factory is poorly manned and is only for first aid. Christians are not allowed to pray and fellowship during lunch times as it happens in other places as this is banned. If found violating the rule, one is summarily dismissed.
Sexual harassment by Indian managers is the order of the day. To compound and complicate matters, even those fully employed are not covered by insurance. To Vimal, he is close to the powers that be, and nobody can dare stop his operations and oppressions.
United Nations were probing all these Scandals as Bidco risks being kicked out of the United Nations Global Compact. Parliament is also probing Bidco over human rights abuses, Grabbing of land in Uganda and tax evasion now estimated to be 7 Billion Shillings.
In a bid to save the family empire from falling, a decision was made by the family to have the businessman step aside as his tainted reputation blew huge curses to the BIDCO dynasty. Thiagarajan Ramamurthy takes over from Vimal Shah as Bidco Africa CEO.
Comments
25 responses to “The Rise And Fall Of Strongman Vimal Shah”
Why attack Vital, all Indian companies behave the same in East Africa. I had the same experience at Union LOGISTICS in Nairobi.
They are not attacking Vimal. They’re pointing out his wrongdoings.
The reason why Kenneth Njido Matiba wanted all Asians out of Kenya. They are low mannered. I can tell of the poor working condition, a threat to workers in Nakuru plant.
Agreed Sir.
I am of Asian origin also but I fail to understand how they can treat there worker’s like that. I used to live in Nakuru in the 90s and now I live in London. I am a qualified Ex engineer. In 2012 I was visiting Nakuru.I was requested to have a general awareness meeting to show the engineer’s about explosion proof machines. I did this out of my own interest and off course concern about the way the Ex machines were repaired.Completely out of order and it breaks all the flame proof repairing guides and rules. I informed the senior staff about the danger but No action was taken. So I do agree with you that the safety of the worker’s is comprised.
Regards
kuldip Hunjan
NIR Ltd London. Previous owner of ELECTRO WINDERS.
so are you saying because all Indian firms behave the same, that should be a reason NOT to expose this one? Social media has to be applied to stop such ills.
Can sense a racial undertone and bias in the article Regardless poorly written article poor grammar and unsubstantiated accusations,very disheartening piece of journalism
that may all be very well, but you really need to learn to write properly! this ‘article’ or ‘blog’ is poorly written and full of grammatical and syntax errors, and completely detracts from any impact the story might have had
Get facts right on who refunded on cheza stuff ..mobile networks are platforms used by many so get facts right on who are owners of the cheza coz its not safaricom
I stopped buying Bidco products looong time ago
Typical poor man’s mentality of bringing those above you down, instead of trying to rise up to them.
This report is all you need to know about Indian owed industries/ companies.Why they get away with this is very simple..they are friends of our high elites.The untouchables.I am an Indian and am shamed of being one.This is no way to treat African sister and brothers this way.Shame on our corrupt authorities allowing this to happen.
African take back your continent.these so called investors suck
Irresponsible journalism . According to reputable
Sources, Vimal is replacing his father who is resigning as chairman.
Please get your facts right before writing and publishing supposedly sensational articles!
Thiagarajan is another thief. There are so many talented professionals in Kenya.why big positions are been given to people who were already in big positions. Give opportunities to budding talented professionals.
Not only Indian owned companies. I experienced the same at an African owned company. And until we all stop this nonsense of Indian/ African owned it will continue. We need to acknowledge ourselves as Kenyans first.
You present good and valid points, am just wondering how with all these grammar issues as well as sentence structure this was published. Seriously!
You forgot to mention the Tatuu City saga in which he’s a big part. I think Vimal has done some good for this country too and he’s not fallen. Bidco is his company. Most companies run by indians in Kenya have horrible working conditions.
How is a private property development like Tatu city synonymous to “doing good for this country “? Thats a private venture to profit private individuals. Show me fully stocked dispensaries ,schools, scholaships… you know the CSR staff…only then will your statement make sense
Have you tried working for a Chinese firm?
I can’t say I know much about the rest of the story, but I too will ask, why exclusively attack Shah when most Indian companies be have like this and even worse?
About his hatred for African pple, I would question that coz his wife is as black as we come and he goes to a church lead and congregated by black ppl here in Nairobi.
Very general diatribe, no specifics? What was the name of the London conference? Why pick on Vimal yet the highlighted ills are being carried out by Bidco as a corporation? Many local companies owned by locals have worse records, why didn’t you highlight them? Racial profiling of our captains of industry will do no good if we’re to progress and move forward as a nation!
He has found himself in that position. And has done well in my opinion. So life happens the rough with the smooth. He has sacrificed his whole life for that stupid place all those bloody workers on his neck every month. Won’t that drive you mad. And you well know in Kenya when the boss hasn’t arrived everyone is sitting on their asses on Facebook . So when you finally appeared everyone is busy. So why are you paying them . it drives you NUTS. So the guy Is human. Just leave him alone and start being an enterprise.
I worked there sometime ago. Low salary is true. Nssf and nhif are remmited in time though. Praying is allowed before work during gemba kaizen. We should blame poor politics also, most leaders turn a blind eye to workers plight. Unless more industries are built the few industries will mistreat workers as jobless people are willing to work for even lower pay. I am grateful for having been employed at Bidco where I gained technical knowledge in oil refining and soap making. My only advice to Mr Vimal, am sure he is keeping an eye or ear on this is to be generous like his father and not to give “alternative facts” all the time, even chicken eventually discover you if you lie too often.
Now the Kenyan Media who were covering up the rots have been forced to retrench as they are no longer trusted..Cheers to social media
have worked in the company for 2 yrs, bt only a first aid kit can be found there, I didn’t see any DISPENSARY as it is said.,,,humans right oppression is the order of the day. the above story is true.