Nyagah insists New KCC boss sacked in ‘farmers’ interest’

Co-operative Development Minister Joseph Nyagah maintained he declined to renew the contract for New KCC boss "in the interest of farmers".

Mr Nyagah also accused Mr Francis Mwangi of abuse of office.

Among the accusations against Mwangi is the spending of Sh800,000 to receive Olympic Athletics Marathon champion Samuel Wanjiru, when he returned from Chicago and Boston. Under his watch, the firm also paid the Kenya Revenue Authority Sh20 million in penalties for delaying to pay taxes due to what the minister said was ‘carelessness’.

Nyagah told Parliament the former managing director had allegedly falsified mileage claims, permitted irregular payments, and backdated his application letter.

In any case, the minister, who said he had nothing personal against the former MD, said Mwangi had not notified the board of the desire to have his contract extended, six months to end of his tenure, as required in law.

The minister was adamant he would not rescind the directive to send Mwangi packing, replacing him with Company secretary Milka Gathoni Mugo. He, however, told the House the former KCC MD was free to reapply for the job. But MPs put the minister on the spot over the sacking of Mwangi whom they said had turned around New KCC.

Ikolomani MP Bony Khalwale, Kandara’s Maina Kamau, Maragwa’s Elias Mbau and Eldama Ravine’s Moses Lessonet, wondered why the minister was reluctant to renew Mwangi’s contract yet KCC has performed well under his watch.

Paid dividends

The minister said he had evidence on how Mwangi falsified mileage claims, installed expensive vehicle management system at Sh5 million, misused resources, and paid dividends amounting to Sh30 million to deceive the public that all was well.

"I am so frustrated with people who want to kill the firm. I will always fight for the small man. I am paid to tell the truth. I have said nothing but the truth, and I can provide evidence," said the minister.

Imenti Central MP Gitobu Imanyara challenged the minister to provide evidence Mwangi that lied on mileage claims. Khalwale tabled a letter from the board chairman Matu Wamae, asking the minister to consider renewing Mwangi’s contract.

The minister told the House that a report by the Inspectorate of State Corporations exposed irregular procurement of goods.

But Speaker Kenneth Marende disagreed; saying the letter Khalwale tabled did not show the minister overlooked the board.

Stories by Peter Opiyo, Alex Ndegwa and Beauttah Omanga