Court orders Posta to pay former boss Sh7m

Former Postmaster General Mr Fred Odhiambo in this photo taken in 2009. The Postal Corporation has been ordered to pay its former boss Sh7.4 million for wrongful dismissal four years ago. Photo/FILE  

In Summary

• Posta said the decision to send Mr Odhiambo home was in its best interest as the board was satisfied that there was a serious risk to the integrity and viability of the corporation in the event of continued stay of the claimant.
• Mr Odhiambo told the court that his performance was not reviewed or appraised prior to his termination and observed that during his tenure the performance of the corporation had recorded considerable growth in revenue from Sh2.8 billion in 2005 to Sh3.2 billion in 2008.

By BENSON WAMBUGU
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The Postal Corporation has been ordered to pay its former boss Sh7.4 million for wrongful dismissal four years ago.

Industrial Court principal judge Mathews Aduma said former Postmaster-General Fred Odhiambo was entitled to a lucrative send-off package having left a prosperous career with Barclays Bank with the hope of long service in public sector before his three-year contract was terminated.

The judge considered Mr Odhiambo’s Sh560,000 basic salary, housing allowance of Sh80,000 and other remunerative allowances of Sh100,000 and awarded him 10 months’ salary at the rate of Sh740,000 including interests at court rates from 2010 when he filed the suit.

“I find this as an appropriate remedy to the claimant considering that he unfairly lost means of livelihood and had five months left to complete his contract,” ruled Justice Aduma.

Mr Odhiambo was sent packing on May 25, 2009 by the then Information minister Samuel Poghisio for alleged mismanagement at the corporation. He had been hired on November 8, 2006 for a three-year contract.

Serious risk

Through its lawyer Ken Kiplagat, Posta noted that Mr Odhiambo was not entitled to any benefits saying he collected his dues amounting to Sh4.4 million upon termination of his services which included his contract gratitude and terminal leave.

Posta said the decision to send Mr Odhiambo home was in its best interest as the board was satisfied that there was a serious risk to the integrity and viability of the corporation in the event of continued stay of the claimant.

The corporation’s lawyer told the court that a forensic report by Deloitte and Touche provided sufficient evidence to justify the decision to terminate Mr Odhiambo’s services.

In his response through lawyer Andrew Muma, Mr Odhiambo argued that termination of his services by the minister was unlawful because under the Postal Corporation Act, the powers to sack him were vested in the board of directors.

Employ and terminate

But the corporation maintained that the minister had authority to employ and terminate his services subject to consultation with the board. Further, the corporation argued that Mr Odhiambo had not sought to quash the minister’s decision.

The board had accused the former postal chief of failing to implement directives from the permanent secretary, Information and Communication meant to stop all payments relating to international money transfers.

Mr Odhiambo told the court that his performance was not reviewed or appraised prior to his termination and observed that during his tenure the performance of the corporation had recorded considerable growth in revenue from Sh2.8 billion in 2005 to Sh3.2 billion in 2008.

The Corporation has faced increased pressure from new technologies especially the internet and competition from courier firms that have narrowed her revenue margins giving sleepless nights to its executive suite.