Agriculture CS Peter Munya has sent Kenya Seed MD Azariah Soi on leave pending his retirement in five months.
Munya told Hot News that Azaria has 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 said he has appointed Fred Oloibe the New Kenya Seed MD.
Oloibe is the Head of Strategy and Business Development.
The appointments came after it was reported in the mainstream and social media that Kenya Seed Company operations may grind to a halt.
This is because the company has no Board in place.
There is no institution to offer immediate oversight.
The term of the Board of Directors ended in February, but the company has not organized for an AGM where the new Board of Directors should be elected to take over.
The Board is the one responsible for appointment of a new Managing Director.
But the CS intervened to save the situation.
The term of the current Managing Director Azaria Soi ends in September.
According to the State Corporations guidelines, a civil servant should be given at least three months leave in preparation for retirement.
The company has also not convened an AGM in the last five years.
According to Henry Koech a shareholder, Kenya Seed has not paid the shareholders their dividends for the past five years it has failed to convene AGMs.
Koech blamed cartels in the ministry of Agriculture whom he said have been collaborating with the MD (Azaria Soi) to frustrate the efforts of shareholders including the ADC from having a say in the running of the firm.
He wondered why shareholders have not been paid dividends, yet an audit report shows one shareholder was paid sh 5 million in 2019 without the company having an AGM.
He said failure by the Board to oversight the operations, embezzlement of funds can happen without the know-how of shareholders and the public.
The Government is a major shareholder in Kenya Seed with 52.8 shares while private shareholders own 47.2 percent.
Stakeholders blamed the Agriculture Ministry for frustrating efforts to have a new Board in place.
There have been media reports indicating that on Tuesday, there was a virtual meeting that was chaired by Dr.Nathaniel Tum to start reconstituting a new board.
In the previous years, parliament Audit Committee has blamed the company for embezzlement of funds and other resources at the firm.
It is said the Tuesday’s meeting proposed the payment of more than shs 300 million to shareholders as dividends.
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