Monday, August 5, 2013

CORPORATE NEWS: KMC chief faces contempt charges for ignoring order

 

Suspended Kenya Meat Commission managing commissioner Ibrahim Haji Issak at a past function. Photo/File

By  GAGALLO FAYO

IN SUMMARY
Industrial Court judge Nzioki wa Makau said that James Tendwa, acting managing commissioner, and KMC should be tried for disobeying earlier orders to reinstate Dr Ibrahim Issak at the helm of the parastatal.

The Industrial Court has allowed the suspended chief executive of Kenya Meat Commission (KMC) to file contempt charges against the firm and its current head for failing to reinstate him.

Industrial Court judge Nzioki wa Makau said that James Tendwa, acting managing commissioner, and KMC should be tried for disobeying earlier orders to reinstate Dr Ibrahim Issak at the helm of the parastatal.

The court on July 15 froze the May 28 directive that suspended Dr Issak over claims of poor performance, breach of procurement rules and failure to implement directors’ resolutions, according to the suspension letter presented in court.

The judge also stopped the appointment of Mr Tendwa as acting managing commissioner pending determination of the suit.

“The leave be and is hereby granted to commence contempt proceedings against one James Tendwa and the Kenya Meat Commission,” said Mr Justice Makau, adding that the contempt charges would be heard from August 13.

(Read: High Court orders reinstatement of sacked KMC chief)

Dr Issak was suspended on May 28 following disclosure that the factory is heavily indebted and unable to pay livestock suppliers.

He moved to the Industrial Court to challenge the board’s decision to suspend him, arguing that the removal did not follow KMC’s rules and infringed on his constitutional rights. This saw the courts issue interim orders.

“That pending the hearing and determination of this application on further orders , the court hereby grants an interim order to stay the respondent’s decision of May 28, 2013 suspending the claimant/applicant from duty,” said Justice Njagi Marete on July 12.

The board alleged his performance was poor and claimed he last year received Sh27.1 million that was paid to his bank accounts at First Community Bank and KCB.

Dr Issak is further accused of issuing post-dated cheques worth Sh63 million with knowledge that KMC’s accounts had insufficient funds and breaching procurement rules.

But he refutes the claims, and blames the Ministry of Livestock for KMC’s cash crunch after failing to disburse Sh220 million in the year ended June 2012.

He defends his performance arguing that it was during his tenure that KMC made its first profit of Sh51 million in 2012 since its revival in 2003.

He discredits the board’s decision that suspended him saying that it was unprocedural and was never given chance to defend himself.

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