Numerical Machining Complex CEO and board in office illegally

Kenya: It has now emerged that apart from losing 1,200 acres to fraudsters as exclusively reported by The Standard on Sunday, the Numerical Machining Complex (NMC) is in more trouble.

The institution has no working board of directors, the previous having left office following a court ruling in January this year, neither does it have a substantive managing director given that the acting Managing Director Gordon Onjore’s six months contract in acting capacity expired in February this year and has not been extended.

This means the institution identified by National Treasury Cabinet Secretary Henry Rotich as instrumental in industrial expansion in Kenya, cannot proceed with performance contracting, procurement plans and implementation of the strategic plan document because the board must approve all these.

Similarly, any transactions approved by Mr Onjore after expiry of his term as ‘acting’ are deemed illegal and can be challenged in court. A top official in the Ministry of Industrialisation revealed the sorry state of NMC and said it was not clear why the ministry has not advertised the position of the managing director or appointed a new board.

Former President Mwai Kibaki’s private secretary Nick Wanjohi chaired the board that was sent packing by the court. In its ruling, the court observed that then President (Kibaki) contravened Articles of Association of the Numerical Machining Complex, the State Corporations Act and the Constitution by appointing Prof Wanjohi as NMC chairman.

Against law

“It is declared that the President of Kenya and the acting Minister for Industrialisation contravened the Articles of Association of Numerical Machining Complex limited, The State Corporation Act and the Constitution of Kenya by appointing Prof Nick Wanjohi as the chairman of the board of Numerical Machining Complex Limited on November 18, 2011,” the court ruled.

It further ruled the appointment of Abdi Hassan, Joseph Tanga, Andrew Mitei, Bernard M’Ngore, Sarah Mbwaya and Joyce Mulinge as board members was illegal.

“The legal notice No 14701 appointing the chairman and the legal notice No 450 appointing the aforesaid board members are declared null and void ab initio,” read part of the court ruling delivered by Judge James Rika on January 16, 2014.

Although the Kenya Railways Corporation and the University of Nairobi are NMC shareholders, they were not represented in the board.

“The chairman of NMC cannot be any other person, other than the executive chairman or managing director of the Kenya Railways. The Vice Chancellor of The University of Nairobi must be a director in the Board,” ruled Justice Rika.

Since the ruling was delivered in January this year, a source said the ministry has not initiated the process of appointing a new board or commenced recruitment of a substantive chief executive, four months after expiry of the term of the current acting CEO.

The court ruling followed a petition by former NMC Managing Director George Onyango who claimed his contract had been unlawfully terminated by an illegal board. Mr Onyango in his submission told the court that he had been threatened by the board chaired, Prof Wanjohi, who “Demanded for favours, which were in the form of acts of corruption and impunity,” reads the court document.

Contract renewal

However, a board member, Abdi Hassan, told the court that although the petitioner wrote to the board expressing his interest to have his contract renewed, he did not do so six months before the expiry of his contract in line with office of the President circular, Presidential Circular.

Further, the board found out from the Kenya National Audit Office that various malpractices had taken place under Onyango’s watch and the board resolved his contract could not be renewed. Consequently, Wanjohi wrote to Onyango informing him of the board decision.

The court awarded Onyango Sh600,000 compensation but declined to reinstate him. Contacted, Industrialisation Cabinet Secretary Adan Mohammed said: “We are fully aware about the NMC issue and we are handling the matter. We want to constitute the board as soon as possible then hire a substantive chief executive.”

He added: “The confusion was created by a court case filed by the former MD, which has already been concluded. But I can assure you we are playing our oversight function. We are following issues at NMC closely.”

This happened even as it emerged cartels who sold 1,200 acres of NMC at Athi River have been fraudulently trying to feed details of their illegally acquired land to systems at Ardhi House.

However, following the reforms initiated by Lands Cabinet Secretary Charity Ngilu, their efforts have failed repeatedly.