New Kenya Co-operative Creameries Managing Director Nixon Sigey is on the spot for exceeding his term limit.
Mr Sigey’s tenure came to an end on December 31, 2020, but those in the know tell Kahawa Tungu that it is business as usual at the corporation.
Guidelines for extension of tenure indicate that the CEO should declare interest by writing to the Board at least six months before the expiry of his/her term.
In a circular dated November 23, 2010 signed by then Head of Public Service Amb. Francis Muthaura, the Board will then evaluate the CEO’s performance and make a report to the appointing authority recommending termination or extension of term.
Should the Board choose to terminate the contract, the CEO will be required to proceed on terminal leave.
In the circular, however, Mr Muthaura noted that “the position of Chief Executive Officers shall be declared vacant only when the Board of Directors has no intention to renew the appointment of the incumbent for a further term.”
In this case, Sigey is yet to declare interest in heading the corporation for a longer period of time.
The NKCC boss has also been accused of tribalism. In a corporation with over 1000 employees, Sigey has been said to employ his tribesmen.
In an Ethnic and Diversity Audit of Parastatals of 2016, Kalenjins held 28.2 percent of the positions while Kikuyus made up 33 percent of the employees.
Of the 30 senior employees, Kalenjins made up 36.7 percent which translates to 11 employees. Kikuyus came in second with 7 senior positions.
Sigey is also facing accusations of graft.
For example, in August 2018, then Auditor General Edward Ouko called into question various expenditures made by the corporation.
In a financial report for the year ended June 30, 2017, the corporation could not account for Sh1.7 billion spending.
“In the circumstances, it has not been possible to confirm the accuracy and recoverability of trade and other receivable balance of Sh1,762, 200, 310,” read the report tabled before the National Assembly.
Mr Ouko also noted that the corporation failed to provide documents for audit verification of 49 properties valued Sh1.9 billion.
The former auditor also called into question 16 disputed properties worth Sh222 million which have been registered in the names of third parties.
“The company has failed to disclose in the financial statements that the Ethics and Anti-Corruption Commission had cleared two disputed properties LS No.37/22 situated in Upper Hill, Nairobi, which had legally been transferred to third parties,” the report read further.
Ouko also warned that the corporation was on the brink of losing a five-acre parcel of land where Miritini factory is located.
“Five acres out of 32.94 of land LR No MN/VI/2860 on which Miritini factory is located have been encroached by squatters some of who have already put up permanent structures thereby exposing the company to likely loss of vital property…
“In the view of the foregoing, it has not been possible to confirm the valuation, ownership status and the security of properties and equipment balance of Sh2,125,360,155 as at June 2017.”
In March of the same year, the Ethics and Anti-Corruption Commission (EACC) started probing Sigey over the spending of Sh10 million.
New KCC worker divulged that Sigey had spent Sh2.6 million to hire a helicopter to ferry Deputy President William Ruto and then Trade Cabinet Secretary Adan Mohamed to Nyahururu, Kiganjo, and Eldoret in August 2017.
“The Cabinet secretary is scheduled to inspect the NKCC plant modernization programme in Mombasa, Nyahururu, and Eldoret between August 4 to 6. This is, therefore, to request for facilitation by availing a helicopter for use by the CS and accompanying officials,” a John Mwendwa wrote to Sigey.
As a result, Sh2.6 million was paid as advance payment by NKCC against local purchase order (LPO) 4300028122 to AirKenya Express Ltd.
The LPO was signed by Sigey, the finance manager, and the chief finance manager on August 4. The expenditure was confirmed by Sigey.
On July 3, 2017, the New KCC managing director was reportedly paid Sh4,200 for meals and accommodation in Machakos.
The following day, he allegedly received Sh226,574 for meals and accommodation while in Sweden and Finland.
A day later, he was reportedly paid Sh37,800 for official duties in Kericho and Eldoret.
Asked about his frequent trips to Eldoret, Kericho, and Kitale, Sigey said, “I travel a lot to supervise 29 outposts spread across Kenya. I have to do this to make sure that NKCC is at the same level with competitors. If I had just been sitting in the office, I couldn’t have revived NKCC to achieve a financial base of Sh4 billion from a dying outfit earlier.”