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Daily Nation : February 15th 2014
46 | News REPUBLIC OF KENYA SATURDAY NATION February 15, 2014 DEMO | Flower farm Karuturi workers demand salary dues NANDI COUNTY GOVERNMENT P. O Box 802-30300, KAPSABET TENDER NOTICE The County Government of Nandi wishes to invite bids from eligible construction companies for Roads and Building Works as described below: Tender No. TENDER NAME NDCG/02/2013-2014 Proposed Construction of Nandi County Stadium in Kapsabet NDCG/03/2013-2014 Proposed Tarmacking of roads within Kapsabet Town NDCG/04/2013-2014 Proposed Tarmacking of roads within Nandi Hills Town – Lot 1 NDCG/05/2013-2014 Proposed Tarmacking of roads within Nandi Hills Town – Lot 2 REGISTRATION CATEGORY WITH NCA BID SECURITY NCA 5 and above 2% of Tender Sum NCA 5 and above 2% of Tender Sum NCA 5 and above 2% of Tender Sum NCA 5 and above 2% of Tender Sum Complete set of detailed tender documents may be obtained by interested bidders from the Head of Supply Chain Management Office room No. 112 upon payment of a Non refundable fee Ksh. 1000(ONE THOUSAND SHILLINGS only) per document, payable by BANKERS CHEQUE to County Government of Nandi and presented to the Cash Office room 123 upon which, official receipt will be issued for presentation to the Supply Chain Management Services Office for issuance of the tender document. A copy of the receipt should be attached to the tender document upon submission. MANDATORY QUALIFICATION FOR TENDERING The bidders are expected to include the following in their bids: a) b) c) A copy of registration/Incorporation Certificate A copy of a valid compliance Tax Certificate A copy of registration with the National Construction Authority (NCA) in the stated categories d) Bid security in form of a bank guarantee from a reputable bank, equivalent to 2% of the tender sum and in the form specified in the tender document. The criteria of evaluation of bids, the description and scope of works shall be as described in the tender document Youth, Women and persons with disability and upcoming contractors are encouraged to apply Mandatory Site visit for ALL TENDERS as indicated above will be held on Thursday 20th February 2014 at 9:00Am in Kapsabet and Nandi Hills Town. Prices quoted should include all taxes and must be expressed in Kenya Shillings and shall remain valid for a period of 150days from the date of tender opening Completed tender documents, enclosed in plain sealed envelopes and clearly marked with respective Tender Numbers and Tender Name should be addressed to: THE COUNTY SECRETARY COUNTY GOVERNMENT OF NANDI P. O BOX 802-30300 KAPSABET ……and be deposited in the tender box situated on the 1st Governer, Nandi County so as to reach us on or before Monday 3rd Tenders will be opened immediately thereafter. Floor of the Office of the March 2014 at 10:30 am. Submitted bids will be opened publicly in the presence of bidders or their representatives who choose to attend at the Nandi County Government Conference room. The County Government of Nandi reserves the right to reject any tender without giving reasons and does not bind itself to the lowest bidder or any tender. COUNTY HEAD OF SUPPLY CHAIN MANAGEMENT FOR COUNTY SECRETARY COUNTY GOVERNMENT OF NANDI MACHARIA MWANGI | NATION Protesting Karuturi employees who are demanding outstanding dues light fires at South Lake Road in Naivasha. About 300 staff have offered to resign, the firm chief shop steward Samason Oundo said. How flower giant collapsed in debt Karuturi blames eurozone crisis for dip in returns as well as workers’ union for asking the staff to decline salaries BY MACHARIA MWANGI email@example.com is broke. A blue chip company touted as the world’s cut flower giant, then known Sher Agencies, the enterprise was a darling of job seekers. But the story is no-longer A rosy after its ownership changed hands in 2008 becoming Karuturi. It is now debt laden and employees who have gone unpaid for months are striking. Its debts run into billions of shillings. Indian-based Bangalore subsidiary owes at least Sh400 million to CFC Stanbic Bank and other creditors, while the Kenya Revenue Authority is demanding Sh962 million in alleged tax evasion after the firm was found guilty of transfer mispricing. Karuturi Global Limited, the mother firm, is in agricultural, food processing, and information technology businesses. It is a big league player listed at the India Stock Exchange. But for over 2,300 work- ers who have been working at the 400-hectare Naivasha farm that used to produce 600 million roses a year, the largest in the world, it is now a thorn among roses. Early this week, confusion reigned supreme after the farm was placed under receivership, a move that was swiftly overturned by the owners through a court order. The new managers, Mr Ki- eran Day and Mr Ian Small of Business Advisory Group, had promised to settle outstanding dues for the entire workforce according to the company’s chief shop steward Samson Ounda. fter ruling the flower industry roost for years, rose producer, Karuturi, “We were upbeat about the change of guard after receivership, only for the story to change. It is very frustrating,” the worker’s representative told Saturday Nation. Karuturi owners, who were out of reach by the time of going to the press yesterday, released a statement in September 2013 as they battled a boiling rebellion from the workers. The statement from Karuturi Global attributed to Sai Ramakrishna S Karuturi, chairman and managing director, stated that salaries for July, August and part of September had been paid. Ready and willing to pay It stressed that Karuturi had never failed to pay salaries: “In regard to the claims of unpaid salaries, we wish to inform you that Karuturi has always been ready and willing to settle any salaries less permitted deductions for absenteeism and damages following the unlawful strike of 7th to 11th August 2013.” The statement further noted that the claimant (Kenya Plantation and Agricultural Workers Union) had advised its members to decline the salaries: “It is worthy to note that for the six years of existence of Karuturi Limited, the salaries have only been delayed four times due to technical and adminis- AT A GLANCE The numbers in firm’s crisis Jobs: Estimated 2,300 employees demand salaries. Creditors: Firm owes CFC Stanbic Bank Sh400m. The Kenya Revenue Authority is claiming Sh962 million. Output: The 400-hectare farm used to produce 600 million cut roses a year. Sales: At the moment, the company is selling 6,000 boxes of cut flowers according to a middle-level boss. trative issues,” the statement went on. It noted that the flower industry was undergoing a difficult moment due to eurozone crisis which the firm was not immune to. “As a global firm, we are con- fident that the measures being undertaken by the European Union to stabilise the situation will provide better growth opportunities for the business, which shall hence translate to our employees’ welfare.” So how did the firm with a large production base in Kenya, Ethiopia, and India, and commanding nine per cent of the market share in European cut rose market get trapped in debt? As we went to press this and other questions were still unanswered but company insiders claimed the crisis was an artificial one. One middle-level manager wondered why the problems were persisting yet they were selling 6,000 boxes of flowers a day: “We entirely blame the management of the company for the delay in paying salaries,” said the source. The source added that the company’s fortune began to nosedive in 2012 when the management failed to remit suppliers’ dues. With essential supplies dwindling, the production contracted. Stay afloat Despite the shortages, how- ever, the company maintained essential services — irrigation, spraying, and welfare — to help the troubled company stay afloat, he added. The problem engulfing Karu- turi could sent ripples across other businesses in Kenya, the chamber of commerce has warned. “As chamber of commerce we are concerned by what is happening at the Karuturi flowers… it not good for business. All concerned parties should sit down at the negotiating table and agree on the way forward,” Nakuru County chamber of commerce chairman Njuguna Kamau said.
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