• Nobert Ikundo, ex-head of Nzoia Sugar's ICT department, dismissed after loss of Sh1 million components, payment of ghost workers and other alleged malpractices.
• Though court ruled dismissal was fair, judge Matthews Nduma ruled Ikundo had proved that the company owed him Sh3.65 million.
Image: JOHN NALIANYA
Nzoia Sugar Company was justified to dismiss its ICT head for multiple alleged wrongdoings —including paying ghost workers and forging certificates— but it still owes him Sh3.6 million, a court has ruled.
The High Court order on November 8 is a blow to the financially troubled company whose employees have not been paid for four months.
"The court is satisfied the respondent had justified grounds to terminate the employment of the claimant. However, Nzoia Sugar Company did not adequately challenge relief sought by the claimant,” Judge Matthews Nduma in Nairobi ruled.
Nobert Ikundo, had been suspended for six months without pay after the company discovered that newly acquired equipment in his department was missing. After that, his contract was terminated and he was paid one month's salary in lieu of notice.
Judge Nduma said Ikundo proved to the court that the company owed him Sh3, 655,573.
However, an audit revealed numerous problems, including payment of 400 ghost workers as casuals, alleged fraudulent procurement of a server and software, among other issues.
Ikundo also faces forgery charges, including forgery of certificates.
He had been working for the company for almost two years earning Sh312,000 a month. Then an adit implicated him in payment of ghost workers, loss of ICT equipment and allowing a stranger access to the company.
Ikundo denied the accusations.
Seeking compensation for wrongful dismissal, Ikundo filed suit, claiming the company procured a stable email exchange server for Sh1,059,660, which included software on a CD and a user licence.
He said the system was unused for almost a year before an external audit disclosed that the CD was missing. Nzoia had not installed support infrastructure due to lack of funds, he said.
In response, internal auditor Lucas Otene told the court that the audit report concluded that the ICT department did not instal new infrastructure and that the technology in place was inadequate. It said some of installed software was not genuine and some was not in use though funds were spent.
“The exchange server was procured on August 10, 2012, but had no components and couldn't be used. The server and software were never placed in the store as alleged by Ikundu but were simply not delivered,” Otene said.
The audit also revealed ghost workers and four managers, including Ikundo, were suspended to allow for investigations.
The audit also said he paid 400 casuals — later discovered to be ghost workers —despite instructions to withhold their payment pending vetting; he allowed a stranger to access CT functions and failed to make reports on ICT strategy progress.
“He fraudulently procured a server and software which was delivered but was not there and the loss was not reported for over a year,” Otene said.
The auditor also said a stranger, Jonathan Shihundu, with no job description, worked at the ICT department and was claimed to be an intern.
“Masinde Muliro University would later write to Nzoia requesting attachment of the same student, confirmation that the student was not attached,” Otene sad.
He explained that Ikundu was dismissed from work and later charged with 32 counts of forgery of certificates, cases still pending. He also had a forged identify card at the workplace.
Though the judge ruled that Ikundu was rightfully dismissed, he ruled the company should pay him salary arrears for nine days in November 2014 and 18 days in December 2014; salary during six months of suspension; salary underpayments by Sh30,000 for 24 months and unlawful deductions of Sh157,000.
(Edited by V. Graham)