Connect with us

Business

Did this man deserve new term at Posta?

Published

on

Spread the love by sharing this post with family and friends
  •  
  •  
  •  
  •  
  •  

At its peak, the Postal Corporation of Kenya was one of the country’s most valuable assets, a commercial behemoth hat had footprints in all corners of the country.

It was also one of the biggest and most sought after employers with an admirable welfare system, including housing.

But years of mismanagement, plunder and the big bang tech disruption

have rendered the corporation almost irrelevant as it struggles to keep its lights on and make enough to pay its bills.

Unfortunately, the health of the State corporation seems to have taken a turn for the worse with the very people who are supposed to prescribe its cure signing its death warrant.

Yesterday, ICT Cabinet Secretary Mucheru renewed the contract of Postmaster General Dan Kagwe, the man regarded by many stakeholders as the latest face of mismanagement that has brought the parastatal to its knees.

Kagwe’s new contract, which was sealed in a special Kenya Gazette notice published by Mucheru on Monday night, immediately sparked outrage from staff who have suffered delayed salaries and other hardships under the current leadership.

“Kagwe has mismanaged this corporation… we are, therefore, calling on ICT Cabinet Secretary to revoke his appointment,” Central Organisation of Trade Unions official Ben Okwaro said.

Okwaro was addressing tens of Posta employees who had staged a sit-in at City Square post office, Nairobi, to protest delayed payment of their February salaries.

The employees complained they had been blacklisted by the credit reference bureau for failing to service loans because of irregular payment of salary.

“Our January salaries were delayed and by the time we were paid we had already borrowed left, right and centre. Now we cannot afford to borrow even from MShwari,” one of the employees said.

As they listened to their union leader, heaps of parcels and packages to various destinations filled the decks in the holding area at City Square because Posta was yet to pay for freight services, especially for air cargo.

Attempts to get a comment from Kagwe did not succeed yesterday but in past correspondence, the official sought to exonerate himself from problems bedevilling the organisation, saying the alleged corruption and mismanagement happened long before he joined the corporation.

He said contrary to claims that he had brought Posta to its knees, he had

actually increased revenue from Sh40 million to more than Sh250 million annually.

“Some of these things which are being said happened when I wasn’t even there… now we are able to pay salaries from leased assets,” he said.

Indeed the issue of leasing the corporation’s assets has been at the heart of accusations of corruption facing Kagwe and his management team.

Succession battle He clarified that while Posta may lease the property at relatively cheap prices, one cannot blame tenants who spend millions of shillings to put up stalls and other structures to earn a decent profit.

Kagwe said the allegations against him were part of a vicious succession battle at the parastatal.

Yesterday, it emerged that the corporation’s board had declined to renew Kagwe’s tenure and had proposed three names to replace him in acting capacity before the decision was reportedly quashed by the CS at the last minute.

The board met last Tuesday to select the acting PMG and subsequently came up with three nominees, but on Friday tables turned after the decision was overturned, handing Kagwe a lifeline.

Last evening, CS Mucheru defended his decision to renew Kagwe’s contract, saying the board had not been categorical about its position about the Post Master General. (See story below).

Board chairman Nick Salat was not available for comment.

An internal audit at the corporation revealed that Posta is haemorrhaging millions of shillings through irregular sales and leasing of its facilities to private businesses, often at throw-away prices.

Records show that more than 40 assets spread across the country have been rented to individuals, some for as low as Sh1 per square foot, way below the average market rate of Sh60 to Sh80.

Other assets are said to have been given to friends and relatives who do not pay a dime to Posta.

In a letter to the Ethics and Anti-Corruption Commission in October 2019, stakeholders urged the anti-graft agency to investigate Kagwe over a property leasing scandal involving a prime property opposite Yaya Centre in Nairobi.

Other affected properties are in Nairobi West, Tom Mboya street, Rumuruti, Kisumu, Mombasa, Karatina, Isiolo, Garissa, Eldoret, Garissa, Timau, Naromuru, Naivasha and Maragoli.

At the Tom Mboya Post Office in Nairobi, a tenant pays the corporation Sh150,000 a month while the stalls erected at the facility rake in over Sh1.4 million monthly.

The prime parcel of land opposite Yaya Centre in Nairobi’s Kilimani area has been leased for Sh250,000 to a former Postmaster General way below the market rates.

The 5.03-acre land located on Argwings Kodhek Road in the upmarket suburb was once the cause of a tussle between a car dealership and the corporation.

Posta had initially offered to sell the property to Bharti Airtel International for Sh500 million before car dealer, Wagon Park Ltd, moved to court seeking to block the sale.

The office of the Auditor General has reported several incidents of misappropriation of funds at Posta, including in April 2018 when Sh29 million was stollen by employees.

“Included in the cash and bank balance of Sh323, 974, 413 is an amount of Sh32,404,410 classified as cash-in-transit. A further perusal of the Corporation’s documents revealed that the amount includes Sh29,196,498.57 which was lost in different regions on diverse dates by staff members,” read the report.

The report further highlighted a case in where Sh12,078,150 was lost in the Yaya branch through fictitious pay-in slips.

“This case was investigated and file closed on 6th July 2015 after an insurance settlement of Sh442,813. By 30th June 2017, the total amount of Sh29,196,498.57 was indicated as still outstanding and under investigation, date of recovery unknown.”

Pending bills

The auditor also noted that buildings owned by Posta are

not registered with the Lands office, making them vulnerable to grabbing Also, the management of Posta failed to appoint a leasing committee as stipulated in the Public Procurement and Asset disposal Act, hence there was no basis to lease the properties.

Sources told People Daily that during Kagwe’s tenure, pending bills at Posta had hit Sh3.7 billion up from Sh843 million when took over.

The PMG has also been accused of making unprofessional decisions that have cost the parastatal dearly. A case in point is an attempt to dislodge a lease from a PCK property in Thika which resulted in a court case where Posta was hit with a Sh20 million fine for breach of contract.

He is also alleged to have hired computers and point of sale devices at Sh4 million a month while declining a cheaper offer from Post Bank and Kenya Commercial Bank for the same.

Before the current controversy the Audit General had questions his appointment, asserting it was done irregularly.

“His appointment was not competitive, making it irregular and this is after strategically acting for almost two years and officially took office in March 2017,” reads the audit report, adding that Kagwe was fighting for renewal of his contract which lapsed on Monday.

By People Daily


Spread the love by sharing this post with family and friends
  •  
  •  
  •  
  •  
  •  
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Carpenter hopes payday in sight in 27-year fight over presidential seats

Published

on

Spread the love by sharing this post with family and friends
  •  
  • 1
  •  
  •  
  •  

For the past 27 years, Solomon Njoroge Kiore has battled with the government over a debt that was initially Sh195 million but has now ballooned to more than Sh500 million in an unpaid bill for presidential furniture he delivered.

Tomorrow (Monday), Mr Kiore will go to the High Court in Milimani hoping that the end is in sight as he is supposed to get a hearing date for a case that has had many twists and turns.

In 1992, Mr Kiore, the proprietor of Furncon, a furniture company, won a government tender to supply presidential furniture but down the line, the deal went sour when the military officials returned the chairs a year after President Daniel arap Moi had used them — allegedly without payment.

The chairs had been acquired through the Ministry of Defence and approved by State House, according to court documents.

The government has denied failing to make the payment and he went to court to seek redress in 2007.

Although Mr Moi used the chairs for a year, Furncon says the military returned them to his workshop.

With the matter dragging through the courts for years, in February 2018, a decision was reached to settle out of court.

But the parties could not agree on the amount to be paid, with the businessman citing lack of goodwill on the side of the state.

Sh527 million

That year, Mr Kiore was seeking Sh527 million, being the price, court costs and storage charges.

He told the court he did not receive any invitation to negotiate a settlement.

Then last year, Symon Yator Cheberek, a military colonel, took over the case after Attorney General Kihara Kariuki appointed him to represent the state in all civil matters in which the Ministry of Defence is a party.

High Court judge Joseph Sergon allowed Col Cheberek to act for the state, but Mr Kiore objected this saying allowing a military officer to take up the matter was tantamount to court-martialling him.

“There can never be a situation where a civilian can be in court one on one with a distinctive disciplined and uniformed force,” he stated in an affidavit on March 25, 2019.

Col Cheberek said he is an advocate of the High Court of Kenya and the Attorney General was in order to appoint him.

Mr Kiore wants Justice Sergon to recuse himself from hearing the matter, alleging bias and citing a 2017 ruling by Justice Philip Mwongo barring the military from taking over the case.

Justice Sergon has declined the recusal plea, saying the claims of bias could not be proved.

 Now, Mr Kiore says his business has died, as he can no longer use the premises where he has kept the chair as it is an instrument of power.

“It was used by a President for a year. It is treasured and therefore no one is supposed to touch it. My business has suffered immensely because of this seat,” he says in his court documents.

In a letter dated May 10, 2001, the Attorney General informed Mr Kiore that the Department of Defence had extended a without-prejudice offer purely out of honour and respect for presidential instruments.

“However, having realised that your claims include other items worth millions of shillings reflective of your other financial issues not related to the chair in question, it has not been possible to formally make the offer to you,” states the letter signed by V Onyango, a deputy litigation officer at the State Law Office.

Admission of liability

The offer, the officer states, is not the government’s admission of liability, because “the said chairs were ordered by the Agricultural Society of Kenya”.

The September 1992 deal was not the first. Mr Kiore’s company had sold furniture for VIP use in State functions to the government before.

He says the seat was made under strict supervision of the military and State House staff.

The firm says it was asked to make more furniture for presidential lounges at the Eldoret Moi Airbase and Kahawa Garrison and deliver the chairs to the Agricultural Society of Kenya offices in Nairobi for a three-day presidential function.

But the President ordered that the furniture remain at the ASK offices, according to a letter by the ASK dated August 5, 1999.

Now, Furncon wants a declaration that the ownership of the items was passed on to the government in September 1992, under the National Flag, Emblems and Names Act and as such they are instruments of power.

by nation africa


Spread the love by sharing this post with family and friends
  •  
  • 1
  •  
  •  
  •  
Continue Reading

Business

Go Green na Optiven

Published

on

Spread the love by sharing this post with family and friends
  •  
  • 2
  •  
  •  
  •  

It is the responsibility of everyone to tender and care for the planet for better and healthier future generations.

 

We call upon you to join any of these categories:

 

1. Those who are more environmentally friendly

 

2. Those who are ecologically responsible in both their decision making and lifestyles

 

3. Those who protect environment

 

4. Those who protect and sustain the natural resources in their area of business

 

5. Those who help to conserve resources like water, air and vegetation

 

6. Those who produce eco-friendly products, thus preventing pollution of our air, water and land

 

7. Those who can prove that they have been using Green Energy/clean energy such as solar power or if using conventional energy; they are using eco-friendly bulbs and that save energy.

 

How can each play a role this is a highlight of just but a few but you can  put your   role that  you are doing  to promote the  green agenda

 

1. Builders/Engineers/Architects/Interiors designers

i. Use of solar energy/ Use of solar panels

ii. Use of Energy saving bulbs, florescent tubes

iii. Use of organic paints, light friendly windows

iv. Use of Eco-friendly toilets

v. Harvesting of rain water from roof tops, use roofs that are Eco-friendly, ensure that water does not go to waste

vi. Proof of reduction of water bills as a result of going green

vii. Water recycling technologies like Bio digester

viii. Those whose provide green buildings, Eco-friendly homes

 

2. Farming, gardening, landscaping experts

i. Use of drip or sprinkler on not flooding water while gardening or farming

ii. Use of organic pesticides

iii. Use of organic manure

iv. Those who increase forests cover

 

3. Health businesses, Schools, Hospitals

i. Those providing natural skin care products & not petroleum or synthetic ingredients on the products

ii. Those offering advice on going green, creating awareness of going green

iii. Those who teach children on being a friend of the earth

iv. Those who buy from ethical farmers who are known to produce organic products

 

4. Transport industry, drivers, delivery companies and logistics firms/organizations

i. Those who reduce carbon emissions directly or indirectly

ii. Any Awareness of climate change

iii. Any knowledge of carbon emissions and how to reduce?

 

5. Property Owners within Optiven Projects

i. Planting of trees in their plots

ii. Adoption of water recycling technology

iii. Establishment of Green Spaces

iv. Proper waste disposal

 

6. SMEs

i. Those who recycle waste

ii. Those manufacturing from the recycled materials

iii. Those who take proper care of electronic wastes

iv. Tech companies that have a green policy on disposal of electric waste

v. SMEs that can prove awareness of global warming

 

7. Families

i. Those who adopt any of the going green initiative say family tree planting, planting a tree during birthday instead of having a birthday cake or doing both

ii. With children who are aware of climate change and also alive to ways of preventing in preventing it

iii. Families that are involved in separation of different form of waste and or engaged in any form of recycling

 

8. Hotels, restaurants, supermarkets, entertainment joins

i. Provision of organic food to customers

ii. Support of local farmers who do organic farming

iii. Awareness of climate change and its risks to humanity

 

9. Decision makers- checking the green component in your venture

i. Any policy decisions on going green

ii. Awareness on global warming

iii. Any knowledge of implementation of United Nations Development Goals

 

10. Children: If you are a child who is school going or otherwise and you have started being sensitive to the planet by doing conservation activities

 

11. Others: If you  believe that you are a friend of the planet, let us know

 

https://youtu.be/45nfQZYQeKU

 

#SaveTheEarth

#SaveOurPlanet

#GoingGreen=Healthy Families

 

George Wachiuri

Trustee

Optiven Foundation

www.optivenfoundation.org


Spread the love by sharing this post with family and friends
  •  
  • 2
  •  
  •  
  •  
Continue Reading

Business

VIDEO: Optiven CEO opens up about growing up in abject poverty, doing laundry for fellow students

Published

on

Spread the love by sharing this post with family and friends
  •  
  • 2
  •  
  •  
  •  

George Wachiuri, the CEO of Optiven Limited, has opened up about a side of him few people know about. Despite having built a multi-billion Shilling Real Estate Company and becoming one of the most recognisable names in the field, Wachiuri has remained a humble servant, who says he views his customers as associates and greatly respects and values his work mates. 

In an interview with Jeremy Damaris of Kenya Diaspora Media, he tells of how he struggled, lost money and friends, before rebounding “by the grace of God.”

A Certified Public Accountant – CPA (K) and is a former Lecturer at Daystar University, his entrepreneurial spirit developed early, and was awarded the Entreprenuer of the year 1997 by the University of Nairobi.

He is currently a PhD candidate at the Jomo Kenyatta University of Agriculture and Technology.

He holds a Masters’s degree in Business Administration (University of Nairobi), and a Bachelor of Commerce (Marketing option) Degree from University of Nairobi.

Watch as he tells his amazing story in Gīkūyū


Spread the love by sharing this post with family and friends
  •  
  • 2
  •  
  •  
  •  
Continue Reading

Special Offer: Own one starting at Ksh 3.7M


poapay3

Like us on Facebook, stay informed

NEWS TRENDING RIGHT NOW

2020 Calendar

satellite-communication1.jpg

Trending