Management vacuum can only encourage corruption

Financial Standard

By Benson Kathuri

When President Mwai Kibaki opened the Kenya Meat Commission (KMC) factory at Athi River in June 2006, he warned that looters would be pursued, prosecuted and money stolen recovered.

His Government went ahead to settle over Sh4 billion the collapsed KMC owed the National Bank before committing close to Sh1 billion to rehabilitate and re-start its operations.

"The reopening of this factory is only the beginning. Others will follow suit and Kenyans will benefit both directly and indirectly through the creation of jobs and improved trade," President told a cheering crowd.

Barely three years later, millions of shillings now appear to have been lost through mismanagement, while 105 direct jobs and thousands of indirect ones have been lost in five months.

Thousands of heads of cattle, goats and sheep have died in drought-stricken regions, yet the Athi River-based facility re-opened primarily to save such situations.

Despite the fact that those who had mismanaged the facility in the first place were never caught and punished as promised, those appointed later seem to have driven the giant abattoir down the old path.

Livestock minister, Mohamed Kuti has repeatedly accused a former managing commissioner of misallocating over Sh300 million, yet he has not been punished.

Won court case

Though the official has won a court case after a High Court judge ruled that he was sacked irregularly, he is yet to be charged with corruption in a court of law.

After sacking Kimonye over a year ago, the former Livestock minister, Joseph Munyao, failed to appoint a replacement, thus creating the perfect window for corruption and mismanagement.

A board of directors, headed by former PS Sammy Kyungu, met and arbitrary decided to pick Vincent Ngurare, from their board, to act as managing commissioner.

When Kyungu’s term expired in December last year, Kuti again failed to appoint a replacement, creating another vacuum at the board level.

This, however, did not discourage Ngurare from approaching the board, seeking an extension to his ‘illegal’ contract by another two months, as a competent replacement was recruited.

His term ended last week without a replacement after the board passed a no confidence in him and ordered him out.

Surprisingly, they appointed Julius Musyoki in an acting capacity. Musyoki is the company secretary who has presided over the company board meetings for the last three years.

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