Agriculture CS Peter Munya and the New -KCC Board of directors are reluctant to appoint a new MD at the parastatal.
This is despite the Mwongozo code of Governance for state Corporations issued by State Corporations Advisory Committee (SCAC).
The Code spells out what the Minister and the Board need to do.
The Mwongozo handbook was inaugurated by President Uhuru Kenyatta.
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 Dec 2020.
Its only five months left.
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.
Insiders at New-KCC are wondering why Munya has not done the same.
The Board is also on the spot for remaining mum on the issue.
According to Mwongozo Code, one of the Board’s function is to ensure succession in the Parastal.
The Board will have failed in its mandate of ensuring smooth succession planning which can likely lead to a leadership vacuum in the biggest parastatal that supports a lot of stakeholders all over the country
“NKCC board will be failing in their duty as stipulated in the Mwongozo Code of Governance. Clause 1.18- 1 States the Board’s functions are a) to appoint and remove the CEO b) to ensure that the CEO is recruited through a competitive process. The NKCC board will have failed by not performing as per item a) and b) above,” said an insider who requested not to be named.
Several other New-KCC employees said the Board should have finalized on Sigei’s contract and recommended that he proceeds on terminal leave pending recruitment of another CEO through a competitive process as required of them by Mwongozo.
When reached for comment on Sigei’s issue, CS Munya promised to get back.
However, for 4 days, the CS did not answer calls nor respond to text messages sent to him.
NKCC Board Chairman Ignatius Kahiu could not be reached for comment.
However, another Board member who requested anonymity said the Board met recently and discussed transition at the Parastatal.
“We met as the Board. We are aware the MD’s tenure is coming to an end. We wrote to the Cabinet Secretary and we are awaiting communication from him,” said the member.
Several staff said Sigei has cleverly avoided going on leave for the whole of the 6 years he has been at the helm.
This is against the company policy and good corporate governance and good Human Resource practice.
Sigei did not respond to text messages and phone calls when asked about not going on leave.
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.
In 2017 Sigei was accused of spending ksh 2.6 m through hire of a non-existent chopper 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.
New KCC lost over ksh 100 Million in 2018.
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.
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.
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.
ALSO READ: Court postpones case against embattled New KCC bosses for a second time