Hasten payment to ex-Pan Paper workers, PS told

A house committee has faulted the State Department for Industry for the delayed payment of terminal dues owed to former employees of Pan African Paper Mills who exited the facility 15 years ago.

The MPs who sit in the committee on implementation took to task Investment Principal Secretary Juma Mukhwana for failing to address the plight of the said former employees most of whom are now in old and suffering.

During a meeting chaired by the Embakasi West MP and Deputy Minority Whip Mark Mwenje, the lawmakers expressed concerns over what they termed as lack of goodwill from the Ministry of Investments, Trade and Industry to resolve the matter that has lingered since the company was put under receivership in 2019.

Lack of goodwill

The former workers are owed Sh230 million in dues with only Sh75 million having been paid to them in 2018, as ex-gratia payment based on the former employees’ three months’ salary, net of Pay As You Earn (PAYE).

Said Mwenje: “I am sorry but I find your response unsatisfactory. Have you made an effort to table a request for the provision of the monies owed to these former workers in the last Financial Year or even during the subsequent consideration of Supplementary Estimates? Your submissions regarding this matter portray lack of goodwill on your Part.”

The MPs who had invited the PS to apprise the Committee on the status of payment of the former employees of the company as provided for under Section 66 of the Employment Act 2012, told the Department to push for part of the money to be included in the forthcoming Supplementary Estimates, and to factor the balance in their next budget proposals before the Departmental Committee on Trade, Industry and Co-operatives.

The lawmakers said that the excuses that the ministry had not been involved in the valuation of the company as well as that budgetary constraints that had delayed the settlement, did not suffice.

They sought to know why the Mukhwana had failed to factor the monies to pay the former employees in the 2022 Budget Policy Statement despite the Principal Secretary, State Department for National Treasury writing to him directing him to prioritize the settlement of the dues.

While terming the 15-year long wait by the employees as unfortunate, the MPs said it is the high time that justice is served on grounds that some of the former workers may not be alive to enjoy their dues when they are finally paid.

Said Nandi Woman Representative Cynthia Muge: “It is disheartening that we’re here to deliberate a matter of officers who were terminated 15 years ago. PS, this is clearly a lack of goodwill on your part. Even if you’d probably claim that you were not in office when the termination happened, the government operates in perpetuity.”

State Department

But in his defense, the PS explained 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 explained that the National Treasury had given their commitment to facilitate the settlement of the dues as the sector ceilings for the financial year 2024/25 could not accommodate any further allocation for the payout.