New KCC boss to know fate in May over graft claims

Kenya New Co-operatives Creameries (KCC) boss Nixon Kipkemoi will know his fate on whether to step aside over claims of graft and nepotism next month.

Kipkemoi, Magdalene Muthoka and Samuel Kamindu Ichura who are the Managing Director, Chief Manager Human Resource, Administration, and Chief Manager Finance respectively are being accused of corruption, discrimination and incompetent conduct in their roles at KCC.

In response, however, the three managers asked the court to dismiss the suit saying it was premature as investigations were still ongoing.

The state corporation also opposed the application by the court by ex-company secretary Peter Kennedy Ombati saying it did not disclose the violations of the constitution.

“The Petition is misconceived and premature,” said Waweru Gatonye who was representing New KCC.
Justice John Onyiego heard that the removal from office of persons is primarily a human resource job and thus the court should refrain from interfering with an employer’s human resource function.

Ethics and Anti-Corruption Commission (EACC), which is also party to the suit, requested the court to dismiss the said application saying it was premature despite raising serious issues.

According to the anti-graft body, due process has to be followed and that it learned about the complaints on February 15, 2016, while the petitioner became aware of the complaints on 4th Nov 2015.

EACC argued that the petitioner failed in his duty to report and coming to court to allege his inaction is by large unjustified.

“In spite of the grave allegations by the petitioner, he should not benefit from the orders he seeks for his failure to take action,” the court was told.

According to EACC, the allegation by the petitioner that the graft body has not been acting is not based on law.
 Ombati is seeking to have the three KCC officials declared not fit to hold office due to their corrupt dealings.

Ombati through his lawyer Wilberforce Khalwale claims that while he worked at the state corporation he received numerous complaints of abuse of office, employment malpractice and corrupt practices being perpetrated by Sigey who is the Managing Director.

He claims that the MD was engaged in nepotism that saw him recruit and employ his relatives and close friends and out of 803 employees recruited, 322 came from hid ethnic region.

“He also discriminated some officers in that he upgraded some officers whilst others remained at the lower grade. He also increased the salary of some officers who had just finished probation without an approved structure supporting salary,” he said in court documents.

Ombati further accuses the MD of hiring a helicopter for the Trade cabinet Secretary yet there is no record to show that the CS traveled.

He says he took the complaints to EACC, Trade Cabinet Secretary and Inspectorate of State Corporation but nothing has been done yet.

The lawyer wants an order requiring the Kenya National Audit Office to carry out an audit of the funds used by the three senior managers and those found to have misused public funds be held personally liable and be surcharged accordingly.

He accuses EACC, Trade Cabinet Secretary and Inspectorate of State Corporation of failing in their oversight role over the managers.

He further wants the court to order EACC to conclude investigations against the three managers with speed and within a time frame that the court may provide.

“The corporation has lost over Sh 475 Million employees contribution and this must be investigated,” said Ombati
Ombati claims that KipKemoi irregularly employed relatives and close friends since he joined the corporation in 2015.
The petitioner also claims that the MD failed to follow internal processes and policies in carrying out employee performance reviews.

He added that the three might interfere with the key witnesses and the evidence documents if they continue to stay in the office.

The petition claims that Kipkemoi and Magdalene irregularly authorized the transfer of Sh475, 150,742.54 being employee’s contribution from Liberty Life Assurance Company Limited to Britam Life without members consent.

Ombati, in his affidavit, claims that Kipkemoi on August 6, 2017, Kipkemoi irregularly hired a chopper for Sh 2.6 million.
Judge Onyiego said he will make his ruling on May 8, 2019