Friday, April 10, 2015

Ex-Telkom staff fail to enforce Sh1.4bn deal







PHOTO | FILE National Treasury secretary Henry Rotich (left) and investment secretary Esther Koimet at past function. Ms Koimet has said the Treasury is waiting for the Cabinet approval before proceeding with the process of acquiring 40 per cent stake in the De La Rue Kenya Ltd.
National Treasury secretary Henry Rotich (left) and investment secretary Esther Koimet at past function. Former Telkom Kenya workers seeking a Sh1.4 billion retirement payoff have lost a bid to enforce a settlement agreement. PHOTO | FILE   NATION
By NATION REPORTER
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Former Telkom Kenya workers seeking a Sh1.4 billion retirement payoff have lost a bid to enforce a settlement agreement.
High Court Judge Alfred Mabeya declined to enforce a deal the 997 former workers had entered with the telco, for failing to meet certain requirements.
The Deed of Settlement dated August 8, 2014 required that the workers, through their lawyer, prepare and submit to Telkom’s lawyers, duly executed consents withdrawing or marking all pending cases they have against Telkom, as settled.
“It was then that Telkom’s lawyers are enjoined to execute such consents and file them in the respective suits. It is only then that the obligations as to payments on the part of Telkom shall arise,” said Mr Justice Mabeya.
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The judge said that a lawyer has an implied authority to enter into a compromise on behalf of his client, adding, “this is a clear statement of the law that does not require any authority”.
He noted that it was not in dispute that the 997 former employees worked with Telkom. That they offered their services as best as they could to Telkom for which the company immensely benefited, until it decided to terminate their services.
“It is regrettable that even after two courts, the High Court and the Court of Appeal, have pronounced that Telkom ought to pay the 997 former employees certain monies, the company is still bent on postponing its day of reckoning,” said the judge.
The workers were retrenched in 2006, but Telkom was found to have acted discriminatorily by the High Court.

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