Sacco wants Egerton University compelled to pay Sh229 million 'debt'
By Daniel Chege | March 16th 2020
Egerton Sacco want the management of Egerton University compelled to pay over Sh229 million- money that was deducted from employee since 2017 but never remitted to the savings cooperative
This is after the college management through Moses Odero, the Finance Officer, admitted to the High Court that they owe the Sacco the amount that has accumulated for three years.
“The defendant admitted to owing the plaintiff Sh229,753,002 through an affidavit by their finance officer on November 1, 2018,” read the notice of motion dated February 17, 2020.
The Sacco wants Justice Teresia Matheka to enter a judgment against Egerton on admission to the debt they owe.
The plaintiff submits that it will collapse if the judgment is not entered due to a high figure owed by the defendant.
“The university will not suffer any prejudice if the judgment is entered. But if not, the Sacco will suffer repairable damage and prejudice that may lead to its collapse,” reads the application.
In the application, the Sacco accuse the University of Prejudice after it failed to remit money meant for its workers to the Sacco.
The Sacco had entered an agreement for the university to remit contributions and deductions from its workers.
“From 2017, Egerton has been receiving salaries for the workers from the government but has not been remitting contribution and deductions from employees to Sacco despite receiving full pay,” reads the application.
The Sacco in the affidavit sworn by Chairman of Board Ezekiel Cheboi avers that although they signed consent on June 26, 2018 for the university to pay Sh153,230,443 within 12 months but it only managed Sh32,015,849.
“The university ceased from paying the rest of the amount thereby breaching the terms of the agreement,” said Cheboi.
Several letters were sent to the university but in the application, Cheboi said that the university still failed to honour the undertaking.
By November 2019, the Sacco averred that the non-remittance lists showed that the university had a debt of Sh476,196,986.
However, the university has only admitted to Sh229,753,002 and refuted the balance of Sh246,443,984.
The case for the balance will proceed to trial.
The inter-party hearing will be on June 16, 2020.
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