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Business Daily : October 14th 2013
9 Monday October 14, 2013 | BUSINESS DAILY CORPORATE NEWS BY GERALD ANDAE The chief of Kenya Meat Commission was released from prison on Friday as the firm expressed intention to appeal fines levied on the company and its head for disobeying court orders. Industrial Court judge Justice Njagi Marete had on Wednesday commit- ted James Tendwa, acting managing commissioner, to a jail term of three months or a fine of Sh2 million with the State-owned meat processor asked to pay Sh10 million. The fines were the result of the fail- ure by the firm to reinstate suspended managing commissioner Dr Ibrahim Issak following a court order issued on July 15. This saw Mr Tendwa serve two days at the Industrial Area GK prison before the cash-strapped firm depos- ited the Sh2 million in court on Friday morning. KMC lawyers had since Thursday been racing to freeze the fines and the jail terms as the meat processor pre- pared to appeal the contempt charges, before Industrial Court Judge Monica Mbaru issued fresh orders Friday. “The court will grant a conditional stay of execution of the court orders is- sued on 9th October, 2013 and direct the second respondent to deposit in court Sh2 million pending the hear- ing of the application,” noted Justice Mbaru. “That there be release of Mr James Tendwa from Industrial Area G.K prison upon the satisfaction that the respondents have made a deposit of Sh2 million in court.” The October 9 orders included the jail term, the two fines amount- ing to Sh12 million and the directive to auction the property of KMC in the event that it fails to settle its financial penalty. The judge also stopped the appointment of Mr Tendwa as acting managing commissioner, pending de- termination of the suit and directed the meat firm to reinstate Dr Issak. The State-owned firm was directed to pay the suspended chief his salary and benefits since July. The court on July 15 froze the May 28 directive that suspended Dr Issak over claims of poor performance, breach of procurement rules and failure to imple- ment directors’ resolutions, according to the letter suspending him. Rules But the State-owned firm declined to reinstate the suspended manag- ing trustees, prompting his lawyer Mwaniki Gachuba of Onyoni Opini & Gachuba Advocates to file the con- tempt of court proceedings. Dr Issak was suspended following disclosure that the factory was heavily indebted and unable to pay suppliers. He moved to the Industrial Court to challenge the board’s decision to sus- pend him, arguing that the removal did not follow KMC’s rules and infringed on his constitutional rights. The board accused him of issuing post-dated cheques worth Sh63 mil- lion with the knowledge that the firm had insufficient funds and breaching procurement rules. But he refutes the claims. firstname.lastname@example.org KMC chief ≥eleased afte≥ days in jail CONTEMPT Official served two days at the Industrial Area Prison, deposited Sh2m Friday KMC workers prepare meat for export: The firm was fined for contempt of court. FILE CORPORATE NEWS Kenya Powe≥ eyes la≥gest bond at NSE Kenya Power plans to issue the largest corporate bond at the Nairobi bourse to expand its electricity distribution network in order to keep up with grow- ing demand. The electricity distributor on Fri- day said it plans to spend Sh156 billion between now and 2018 and will raise about a fifth of the funds or Sh25.8 bil- lion from a corporate bond. This will surpass Safaricom’s Sh12.5 billion bond issued in November 2009 and it will be the second time Kenya Power will be returning to the Nairobi bourse after raising Sh10 billion from a rights issue in December 2010. Lawrence Yego, Kenya Power’s fi- nance manager, said the World Bank would provide $150 million (Sh129 bil- lion), adding that the international fin- ancier is also offering technical advice over the proposed bond issue. The country suffers from frequent blackouts due to supply shortfalls and an aging grid, forcing most businesses and wealthy people to have stand-by generators. Kenya Power has had to contend with increasing customer connections, particularly in rural areas.
October 9th 2013
October 15th 2013