Corruption and embezzlement of funds are reportedly the order of the day at New KCC.
A source who requested anonymity said the Board chairman, 82 year old Matu Wamae is sick and senile and that some senior managers have taken advantage of his deteriorated health and are simply “embezzling funds”.
Several New KCC employees who spoke to Hot News on condition of anonymity said the old Wamae has had to be wheeled around New KCC premises whenever he visits.
On Wednesday next week, High Court Judge, Justice John Onyiego will rule whether Nixon Kipkemoi Sigey (Managing Director), Magdalene Muthoka (Chief Manager Human Resource) and Samuel Kamindu Ichura (Chief Manager Finance) will step aside to allow for investigations into corruption and nepotism accusations at New KCC.
This follows a petition filed by former KCC Secretary Peter Kennedy Ombati, seeking to have the three declared unfit to hold office due to alleged corrupt dealings and nepotism.
In November 2018, the EACC started a probe after shs 500 million was allegedly transferred from New KCC accounts to other entities.
Mr Ombati has raised several issues in his petition.
Ombati said on August 6, 2017 Sh2.6 million was used to hire a chopper for services not rendered as neither the Board members nor management team were invited to accompany the government team that was alleged to be involved in inspection of modernization of factories in Mombasa, Nyahururu and Eldoret factories in August, 2017.
This was during the general elections and it’s suspected the chopper was used by his politician friends in their campaigns at the expense of the taxpayer.
However, when the chopper issues were raised by the EACC last year, the aged Matu Wamae reportedly defended the MD saying that ”the helicopter was hired for a Government function to pay a debt that old KCC(1999) owed farmers and check on modernization progress in Kiganjo, Nyahururu, Eldoret ,and Sotik Factories”.
Insiders at New KCC say the helicopter hired in August 2017 did not fly at all but it was fraudulently fully paid for and in advance and no services were rendered.
Last year, several other employees led by Ombati also accused the New KCC MD Nixon Sigey of tribalism and unlawful dismissal of employees.
Despite the constant court battles and the leadership wrangles at New KCC, Wamae has remained at helm of the board.
A photo of a frail and sick Mr Wamae being wheeled in a wheel chair as he visited various New KCC factories a week ago left many people in shock.
The picture has been trending on social media.
Wamae has alternately served as chairman and also as a member of the New KCC board since 2005 and is currently serving his sixth term.
Insiders say corruption at the Corporation has made its finances nose dive to a record never seen before.
They say suppliers and other stakeholders have to wait for more than 4 months to be paid for their supplies.
Our sources indicate that the financial status of the company is in great doubt.
“New KCC is unable to meet its daily financial obligations. The company is currently and secretly settling its recurrent financial obligations from the Government money it has been lent for carrying out projects. This is quite worrying as there are no stocks in the warehouses and there is no correspo
nding inflow of money for goods sold. So where is the money?” the source quipped.
It should be noted that all the media publicity regarding what Mr Sigei has done for New KCC is all about utilization of the ksh 1 Billion taxpayers money the Kenyan Government has given the Corporation and not what the Company has done with its own internally generated funds.
The source said it’s baffling that the New KCC Board has never demanded to know the truth by instituting an independent investigation into all these allegations.
“It is believed that majority of the Board members are not willing to antagonize the MD and the Chairman and as long as they get their sitting allowances and other freebies,” the source said.
The source said the New KCC MD is a former employee at Agricultural Development Authority (ADC).
He was reportedly sacked after several scandals involving loss of fertilizer , a tractor , herds of cows and allegedly hiving off some parcel of land for own use.
When reached for comment on these allegations and how the New KCC board is operating Sigei did not respond to calls.