Guards fight with security firm over unremitted sacco deductions

A security guards sacco is seeking court orders to compel Lavington Security Limited to pay its outstanding debts of Sh244 million.

Lavington United Sacco Society Limited says High Court judge Wilfrida Okwany dismissed a request by the security firm to bar the sacco from demanding a sum of Sh48 million that was deducted from its members but not remitted.

The sacco says it is not able to give loans to clients.

In court documents, the security company also wanted the court to stop the Sacco from sending letters demanding remittance of their dues and threats to attach its 16 bank accounts over the debt.

The sacco is now demanding Sh196 million which accumulated from the 48 million outstanding debt. That totals Sh244 million.

The company had argued that should the sacco issue urgency notices to its bankers, it is still the over 8700 employees who will be adversely affected.

The company said the employees depend on the said salaries paid from the said accounts to sustain their families.

Lavington Security Ltd had also sought suspension of the court order that directed it to pay the monies.

It argued that it had been unable to access its bank accounts at Standard Chartered Bank. It said fulfillment of the payment order is depended on its ability to access its bank accounts.

But the court threw out the requests and only allowed the prayer for joinder of the Cooperative Bank into the dispute so that the lender can clarify on the alleged agreements entered between the company and the Sacco.

The sacco says remittances were to be wired through the bank but the company failed to honour its part of the agreement.

The court had declined security company’s request to cite commissioner of cooperatives and the Standard Chartered Bank in contempt over alleged disobedience of orders.

The alleged disobeyed order was for depositing the amount of Sh48,026Z79 into a joint interest earning account held in the names of all three advocates within 30 days.

The court found that the said orders had been implemented and there was nothing to hold against the alleged contemnors.

The matter is set for mention on November 14 before Commercial division deputy registrar for directions.