Security firms protest over Sh47m Industrialisation ministry debt

Representatives of 28 security firms, David Murage (right), Alex Mwangi (left) and EK Nganatha, addressing a press conference. The firms have accused the Ministry of Industrialisation and Enterprise Development for failing to pay them Sh47 million. (PHOTO: COURTESY)

Some 28 security firms have accused the Ministry of Industrialisation and Enterprise Development for failing to pay them Sh47 million.

This is in respect to provision of security services for the ministry’s Constituency Industrial Development Centres (CIDCs) in 2013.

The services were rendered by the security firms during the 2013-2014 financial year. In a memorandum to Cabinet Secretary Adan Mohamed, representatives of the firms said the ministry had promised to pay them in the last financial year but failed to do so without offering any explanations.

Speaking to the Press, David Murage of Aberdare Guards, Alex Mwangi of Tangle Security and Straight Security’s EK Ngathana said they had run out of patience. They called on the Office of the President to intervene and ensure they are paid.

The ministry, as part of the Economic Stimulus Programme undertaken during the 2009-2010 financial year, developed the CIDC across the country, that were later handed over to the Micro and Small Enterprises Authority (MSEA).

However, the Government has promised to pay the firms. A letter from Principal Secretary, State Department of Industry & Enterprise Development Julius Korir to the firms said arrangements were being made to settle the payments. “This is to inform you that the ministry is working with MSEA to finalise the pending payments this financial year awaiting exchequer release from the National Treasury,” the letter says in part.

“As you are aware, your institutions provided security service to CIDCs in the financial year 2013-2014 and the contracts extended for six months into the financial year 2014-2015 up to December 31 2014. Following the handing over, the ministry paid the first tranche for seven months. The remaining were expected to be paid by end of 2015 but the voted provisions from Treasury were not disbursed.”

But representatives of the firms said they were tired of empty promises. “We have run into problems with our financiers. Some of our property have been attached and yet the ministry is taking too long to pay us,” Mwangi said.

Murage noted: “We have been given so many promises but they never come through. To sustain this contract and run it, we had to borrow money from banks through overdrafts and other sources.”

The security companies now say they will seek legal redress to get their money.