Senate Majority Whip and Muranga Senator Irungu Kangata has called on the Public Investments Committee of the National Assembly to ensure there is smooth transition of CEO’s in parastatals.
This is after several CEOs were implicated in corrupt activities, some dragged to court and acquitted, and some forced to step aside forcing acting CEO’s to be in office for more than six months which is against the law.
Irungu told Hot News that all corrupt CEO’s of state bodies should be arraigned in court.
“Public Investments Committee of the National Assembly should pursue these matters diligently”he said.
The National Assembly Public Investments committee chairman Abdulswamad Nassir did not respond to our queries on what the Committee will do or is planning.
However, Hot News has reliably learnt that Agriculture CS Peter Munya is expected to send New -KCC MD Nixon Kosgei on early leave pending his retirement in December.
Munya is expected to invoke the Mwongozo code of Governance for state Corporations issued by State Corporations Advisory Committee (SCAC).
The Code, among other functions, spells out what the Minister and the Board need to do -to ensure transition in parastatals.
The Mwongozo handbook was inaugurated by President Uhuru Kenyatta.
In his foreword, President Uhuru stated ” My government is committed to the full implementation of all the provisions of Mwongozo and will accord the process all the support required to ensure that State Corporations deliver the expected outcomes that we all desire”
Its Addendum Attachment I Mwongozo- directs that the tenure for CEOs of public Institutions must be a maximum of 2 three-year terms.
The current MD, Nixon Sigei was appointed MD of New KCC on 2nd January 2015.
His tenure was renewed for a second and final term of 3 years with effect from 2nd January 2018.
His tenure effectively ends in December 2020.
Its only four months left
Hot News has reliably learnt that Sigei has never gone on leave for the last 6 years he has been the CEO of New KCC.
This effectively means that he should be serving his terminal leave ahead of his exit in December 2020.
CS Munya, the Presidents Chief of Staff and architect of the Mwongozo code , Joseph Kinyua and State House Spokesperson Kanze Dena did not respond to questions on what action the President will take on the Boards and Ministers who do not act on time to ensure transition in parastatals.
They did not pick nor respond to text messages sent to their phones.
During his tenure, Sigei has faced serious corruption allegations and spent most of his second term in court fighting off the claims.
In one of the emails addressed to the Board of Directors by whistle blowers – Sigei was accused of extorting suppliers before approving their payments.
The giant parastatal has for the last 2 years received from the government about 2 billion Kenya shillings of public funds to modernize its production infrastructure.
“It is saddening to see all this government efforts not materializing in improving the economic livelihoods of Kenyans. Instead, suppliers are really suffering as they supply goods and services and they get their payments more than 8 months after delivery”
The Board of Directors is completely lost on how much New KCC owes the suppliers of goods and services.
The overdue amounts are in billions of shillings.
“Instead the Board relies on information crafted to suit what they want to hear and read” observes an insider
In 2017 Sigei was accused of spending ksh 2.6 m through hire of a non-existent chopper service allegedly to fly within the company installations.
The case went to court and it came out that the service was not only paid for in advance against the laws, but it was never rendered at all.
Through this fictitious claim, ksh 2.6 Million of public funds was misappropriated.
In 2018, New KCC lost over ksh 100 Million.
The loss emanated from the Managing Director’s interference of a signed and sealed contract for supply of an IT software.
The MD allegedly single handedly and without involvement of his management team refused a firm, Netronics , which had been awarded this contract to perform as per the signed contract.
The supplier sued NKCC for damages and breach of contract.
An out of court settlement was reached and a whooping ksh 30 million of public funds was paid out.
Another Shs 5 million of public funds was paid to the lawyer representing the NKCC.
New KCC has cumulatively lost over ksh 50 Million in loss of use of the IT software and hardware due to this false start and massive interference of the contract.
The MD is also accused of allowing the illegal Transfer of a Public pension scheme worth ksh 500 Million.
The pension was illegally transferred from Liberty life Assurance company limited to Britam Life without following public procurement law and despite advice not to do so.
President Uhuru has been very consistent on matters corruption and on many occasions, he has reiterated that he has no room for any public officer accused of corruption.
It remains to be seen if the Head of Public Service and the Cabinet Secretary, Agriculture will support the President’s call of fighting corruption no matter how well connected any public officer is.
The MD is reportedly harboring political interests and is a sympathizer of the Tanga Tanga political wing.
One of the accusations is that he is endearing himself to the residents of Kericho by employing lots of staff from the County in readiness for 2022.
To this end New KCC has been on an employment mode akin to what parastatals were employing in Moi Era.
The unfortunate bit is that this employment is seriously laced with tribal and nepotism considerations to a point where the Ministry of Agriculture has intervened and stopped further recruitment and recommended layoffs.
He reportedly hired his brother Emmanuel Bor as Logistics Officer contrary to the law.
The staff say Sigei has since he joined in 2015- been misusing public funds by allocating and paying for security guard services for his homes in Kitale and Kericho
“Nixon Sigei usurped the role of the Board and secretly approved an illegal salary increment to one of her Managers, Magdalene Muthoka,” court papers in one of the petitions reads.
In April this year, Agriculture CS Peter Munya sent Kenya Seed MD Azariah Soi on leave pending his retirement in five months.
Munya told Hot News then that Azaria had not been sacked.
“He is scheduled to retire in five months. State Corporations guidelines provide that a CEO can be sent on leave six months before his retirement with full privileges,” he said.
The CS appointed Fred Oloibe the New Kenya Seed MD.
Hot News has also learnt that the NKCC Board met recently, resolved to have the MD proceed on early leave and initiate the process to recruit a new CEO.
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