Coffee farmers sack officials over laxity and poor financial accounting

 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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