The Pyrethrum Board of Kenya has threatened to institute charges against
the Cooperative Bank of Kenya for freezing its accounts. Photo/FILE
The Pyrethrum Board of Kenya has
threatened to institute charges against the Cooperative Bank of Kenya
for freezing its accounts, hurting business. The board said the move is
illegal and goes against an existing court order.
“We
shall take legal action against this move by the bank, the court had put
a stay in the matter hence maintaining the status quo, awaiting for
further ruling,” said board managing director Alfred Busolo.
Co-op
Bank froze the body’s accounts two weeks ago in what appears to be a
fresh battle between the authority and 100 retrenched employees
challenging the Sh195 million send-off package awarded to them.
In
2009, the government sent home 100 workers in a plan to cut wage bill
in the ailing sector. The staff, however, opposed the pay, seeking an
additional Sh129 million of which the court awarded them Sh61 million.
The
authority owed farmers Sh55 million by October for flower deliveries.
The government gave the board Sh50 million in the same month to pay
farmers and honour staff salaries.
Before the State
interventions, farmers had stopped supplying the factory with flowers
following delays in payment and the board fears this could be repeated
now.
Mr Busolo said the company was waiting for its business to stabilise in order to pay off the retrenched employees.
Kenya
produced 90 per cent of the world’s pyrethrum in the late 1990s but the
output has since plummeted to the current less than two per cent thanks
to management woes
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