President Uhuru Kenyatta has directed the
Attorney General to conduct a forensic inquiry into the operations of the Kenya
Tea Development Agency (KTDA) in an Executive Order.
In
order, the AG will conduct an inquiry into the alleged statutory and regulator
compliance breaches allegedly committed by the directors.
The investigations will surround potential
price and auction manipulations, abuse of dominance, inside trading, wastefulness.
Also,
the point of interest in breach of directors’ fiduciary duties among other
forms of malpractice within the organization.
“There is compelling urgency for the corporate democratic control of
KTDA and its affiliates to be realigned in favour of small-holder farmers,”
said the head of state.
The newly established Tea Board of Kenya to sanction immediate
elections in all tea-factories; to enable farmers to freely elect their Board
Members within 60 days.
The President directed Cabinet Secretary for Interior & Coordination
Dr Fred Matiang’i jointly with the
Cabinet Secretary for Agriculture, Livestock, Fisheries & Co-operatives and
the Hon. Attorney[1]General, ensure the immediate
and full implementation of the order.
The order was issued 24 hours
after Matiang’I speaking in Kangari
market in Kigo Murang’a ordered the law enforcers to provide the tea growers necessary
assistance in their elections.
A week ago, tea farmers leaders
in Murang’a issued notice to the authorities they would be allowed to hold special general
meetings in their 10 tea factories following several litigations lodged by the
KTDA to block the implementation of the government backed reforms.
Agriculture Cabinet Secretary
Peter Munya in the past year has been working on the tea reforms which were two
months ago passed by the senate and the national assembly.
Last month, KTDA increased the price of the green leaf from Sh16 to
Sh21 per kilogramme.
Two years ago, Murang’a Governor Mwangi wa Iria moved to court seeking orders
to allow the office of the auditor general to conduct a forensic audit into the KTDA accounts following the reduced annual bonus payment.
KTDA operates the following subsidiaries: KTDA Management Services;
Chai Trading Company; Kenya Tea Packers (KETEPA); Majani Insurance Brokers Ltd;
Greenland Fedha Ltd; The Tea Machinery and Engineering Company (TEMEC); KTDA
Power Company; and KTDA DMCC in Dubai.
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You can reach our news desk
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