The Mountain Journal
A seven-member committee of a coffee cooperative society in
Murang’a was voted out after it emerged it has failed to comply with statutory
requirements.
The management at the troubled Muruka Farmers Cooperative
Society led by Nelson Nyoike Ng’ang’a was voted out, and replaced by Simon Kigo
,who was elected by the farmers.
The team was ousted after Auditors Mr Antony Waithaka, Mr
Joseph Mwangi and Cooperative Officer Ms Rahab Mumbi implicated them in
ignoring the wealth declaration forms and failure to take society books of the
accounts for audit as the Cooperative Act demands.
The auditor report seen by The Standard revealed that the
society owes its workforce salaries of Sh2.8 million unpaid in the past two
years, NHIF contribution of Sh711,716 among other irregularities.
The report also revealed a committee member from Nguthuru coffee
factory was ejected after he was implicated in the coffee theft
syndicate , while the society remained without a supervisory
committee for three years.
The report outlined that in the last season some money paid from
the sale of the produce was never paid to the employee, as it was used to
offset working capital that had been obtained by the management committee.
“ The factories are in bad shape lacking watch
towers, life fences, with Nguthuru facility lacking a toilet after the existing
one collapsed exposing the workers to suffering when need arises,” read part of
the report.
The management committee, it was
recommended should ensure the governance and financial management
measures are put in place to steer the society to a business model.
At the start of the meeting, there was tension among the members
as their former committee agreed to step aside after the motion to oust them
was endorsed.
Kigo, a former general manager at Murang’a Farmers Cooperative
Union in his acceptance message said the situation at the society with five
coffee factories will be through increased production.
He said the new team has inherited a lot of
problems at the society’s five factories but pleaded with the
farmers to increase coffee production and stop diverting the produce.
“There are issues that will be sorted through neighbourhood
supervision as some farmers have been doing to get better returns,”
said Kigo.
The society has a controversy of Sh1.2 million for advance
payment with Oakland Coffee Marketing Limited after diverting to Tropical
Farm Management.
The factories
are namely Riakibanga, Rianguru, Nguthuru, Muruka and Naaro with 293 active
coffee farmers, and another 157 dormant.
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