•The PS was equally not clear on whether the allocation was factored in next year’s budget which is in the works.
•The Treasury had directed that the payments be pegged on the ceilings approved in the 2022 Budget Policy Statement.
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MPs have faulted Industry Principal Secretary Juma Mukhwana for the delayed payment of dues to former employees of Webuye’s Pan Paper Mills.
The National Assembly Committee on Implementation said the department has not shown willingness to resolve the matter, which has been alive since the firm was put under receivership in 2009.
The committee chaired by Embakasi West MP Mark Mwenje stated that it was not satisfied with the PS's explanation on whether he had presented a request for the payments to MPs.
This was after it emerged that the department neither sought the budget in the 2023-24 financial year estimates nor the associated supplementary allocations.
The PS was equally not clear on whether the allocation was factored in next year’s budget, which is in the works.
“I am sorry but I find your response unsatisfactory. Your submissions regarding this matter portray a lack of goodwill on your part”, Mwenje told the PS when the latter appeared before the team.
The committee was probing whether the government has implemented a petition where the National Assembly ruled that the workers be paid their outstanding dues.
At the meeting, it emerged that National Treasury PS Chris Kiptoo had written to the Trade and Investments PS in November last year requesting the department to prioritise paying the dues.
The Treasury directed that the payments be pegged on the ceilings approved in the 2022 Budget Policy Statement.
MPs questioned the PS on why he had not endeavoured to follow guidance offered by his counterpart in the National Treasury.
Lawmakers thus want the state department to factor the payments in the second supplementary estimates due to be considered by MPs after the short recess.
The former paper mill workers are owed Sh230 million.
Some Sh75 million was paid in 2018 as ex gratia payment based on the former employees’ three months’ salary.
It emerged that in drawing the budget, the allocations for the delayed payouts were substituted by some of the department’s programs.
Dr Mukhwana in his defence told the House team that sector ceilings for the current financial year could not provide for the workers’ dues payout.
He said this was in as much as the National Treasury had given their commitment to facilitate the settlement of the dues.
MPs recommended that the department consider allocating a part of the monies due to the former workers in the forthcoming supplementary estimates.
They advised that the balance be factored into the next financial year’s budget that the department is set to present to the National Assembly Trade Committee.
The PS implied that although the State Department did not bear the primary responsibility for the settlement of these dues, it was working towards resolving the matter.
He told MPs that the ministry was not involved in the valuation of Pan African Paper Mills' assets and liabilities.
The PS disclosed that the joint receivers - Muniu Thoithi, Kuria Muchiru and the Ministry of Finance - were involved.
He also said they had verified the list which he tabled during the session of the former employees numbering 1,350.
However, the lawmakers led by Mwenje told the PS that his responses were unsatisfactory.
The committee dismissed the explanation that the ministry had not been involved in the valuation of the company as well as that of budgetary constraints.
MPs termed the 15-year-long wait unfortunate but emphasized that justice has to be delivered on the matter.
Members of the House team expressed concerns that some of the former workers may not live to enjoy their dues when they are finally paid.