The managing director of Nzoia sugar company Mr Josphat Akoyo is to be retained the board confirmed ysterday.
Board chairman Mr Burudi Nabwera dismised the workers demand to sack Mr Akoyo as unrealistic and told them to accept his management style which he said had improved the companies fortunes.
Mr Nabwera speaking at the
companys board room accompanied by Mr Akoyo said workers complaing
against the MD are to blame for not understanding management matters.
He explained that the board had decided to retain him because he has
intiated a programme to privatise cane harvesting to make it efficient
anf less costly to the company.The chairman said the board had only put on hold the contracting of cane cutters but the programme will be implemented by July after educating farmers and cutters to understand the benefits behind it.
He defended the MDs perfomance saying the board is very much impresed because the company for the first time in it s history made profit last year.
Last week the companies unionisable employees went on strike demanding for Mr Akoyos removal accusing him of undermining them and giving their jobs to casuals.
Led by the National chairperson of Kenya Union of Sugar Plantation workers Mrs Roselinda Simiyu paralysed company operations on Tuesday forcing the Bungoma district commisioner Mr Joseph Irungu to order for the closure of the factory.
The workers asked to be paid production bonus of 2004 and protective gear of financial year 2003/2004.
They said that Mr Akoyo and the human resources manager Mr Joseph Nganga be relieved of their duties for them to return to work.
Sugarcane farmers contracted to Nzoia sugar company have supported the call by workers demanding for the sacking of the managing director Mr Josphat Akoyo for his poor working relationship with them.
The national chairman of the Kenya national sugarcane growers union, Mr Nato Muleme and the chairman of Nzoia outgrower company Mr John Musakali complained that the MD undermines farmers represantatives
yet the payment system is making them to lose money to the company.
The officials claimed the lists of farmers who benefited from shs.300million released by the government last April to clear outstanding debts for cane harvested from 1999-2002 has never been made public.
They complained that some farmers who delivered their crop in 1999 have not yet been paid yet Mr Akoyo has said that the debts were cleared last November after the company paid out shs.410million.
Mr Musakali said the company has to refund shs120million deducted illegally as presumptive tax which was abolished in the year 2000 by the government.
He accused the MD of taking farmers for a ride by charging them the tax which he knew was illegal and told him to make necessary arrangemnets to refund all the money.
The officials speaking at Bukembe market, accused the DC, Mr Joseph Irungu for being misled by management of the company to close the factory to punish farmers.
They vowed to support the demands of workers until Mr Akoyo is sacked for incompetence and harrasing of stakeholders in the sugar industry and also toproduce the list of ghost farmers whom the management claimed
were paid falsely without delivering cane at the factory.
They said that farmers were the first to reject Mr Akoyo s appointment and are determined not to work with him.
Mr Nato claimed cane farming is on the decrease due to poor incentives from the management and refusal to supply fertilizers as it has been the practice.
The farmers challenged Bungoma MPs to declare their stand on the stalemate at Nzoia sugar company because they have not spoken out about the crisis.
They accused the Mps for being behind the appointment of Mr Akoyo as MD last year when his name was not among those shotlisted for the job.
Yesterday ,Trade & Industry minister minister Dr Mukhisa Kituyi denied being party to the crisis at the company.
The minister said "I have never been involved at any stage in the recruitment and retention of managing director of Nzoia sugar comany".
Dr Kituyi said the board of directors should be given space to manage the companies problems and critised those advocating for violence to express thier desires as it wiil not increase the price of
cane or solve the grievances.
Local government minister Mr Musikari Kombo, assistant minister for Foreign Affairs Mr Moses Wetangula, MPs Wafula Wamunyinyi and Sylvester Wakoli have not denounced the closure of the factory publicy.
Last year Mr Nato kicked off a storm with the Nzoia management for demanding payment of shs.415,878,488. accrued interest for cane delivered from 1999-2003.
In a letter to the minister of agriculture Mr. Kipruto Kirwa,the union official claimed the interest was realised after the government waived the interest rates from sugar development fund(SDF),and also lowered interest on loans from 10%-5% last year.
Mr Muleme accused the management at Nzoia for charging interest on payments to farmers against the directives of the government.
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