KMC handed hefty fine over suspended chief executive’s job

Suspended Kenya Meat Commission managing commissioner Ibrahim Haji Issak. The court has ordered Mr Issak be returned to the helm of the meat processor. Photo/File 

By Gerald Andae

In Summary

• Industrial Court judge Justice Njagi Marete committed James Tendwa, acting managing commissioner, to a jail term of three months or a fine of Sh2 million with the State-owned meat processor asked to pay Sh10 million.

The Kenya Meat Commission (KMC) and its acting chief executive were Wednesday fined for disobeying court orders to reinstate the firm’s suspended managing commissioner.

Industrial Court judge Justice Njagi Marete committed James Tendwa, acting managing commissioner, to a jail term of three months or a fine of Sh2 million with the State-owned meat processor asked to pay Sh10 million.

The judge also stopped the appointment of Mr Tendwa as acting managing commissioner pending determination of the suit and directed the meat firm to return Ibrahim Issak to the helm.

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.

But the State-owned firm declined to reinstate the suspended managing trustees, prompting his lawyer Mwaniki Gachuba of Onyoni Opini and Gachuba advocates to file the contempt of court proceedings.

Dr Issak was suspended on May 28 following disclosure that the factory was 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.

READ: KMC chief faces contempt charges for ignoring order

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.

READ: Top KMC officials sacked over poor performance

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 woes 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 a chance to defend himself.

The meat firm is in the red and its turnaround plan has stalled after the Treasury failed to support a Sh750 million recovery pla