Billions go missing as crisis-ridden KTDA struggles to survive – Weekly Citizen

Raila Odinga has waded into crisis at Kenya Tea Development Agency with a call to Director of Criminal Investigations to investigate serious fraud and malpractices the company which for years has exploited the small scale tea farmer through siphoning of monies running into hundreds of billions of shillings.
This is even as reports show that directors of Kiru Tea Factory company Limited had over the years, written to DCI director George Kinoti and his counterpart at Directorate of Public Prosecution Noordin Haji to investigate cartels and mandarins at KTDA who have abused the law at KTDA, holding on to office and executing duties even after a contempt of court sentence of seven months imprisonment or Sh400,000 was handed over to chief executive officer Samwel Tiampati and his five directors.

Raila statement over corruption & mismanagement in tea sector

Kiru Tea Factory Limited moved to court in a protracted battle after KTDA refused to accept Geoffrey Kirundi as company chairman elected by legal annual general meeting and KTDA opted to side with Stephen Githiga who had been beaten hands down by Kirundi.Ken Omanga is KTDA company secretary.
The registrar of companies even went further and confirmed Kirundi as chairman but Tiampati and Githiga who also was sentenced could not hear of tis. What is puzzling is that KTDA is now being run by convicts, a move that has attracted the attention and wrath of Raila. Raila met bonafide Kiru directors led by Kirundi at his office in Upperhill last week on Wednesday where the directors also told him that their directors’ move to be independent and join the Kenya Tea Traders Association, a body that registers tea traders has also been blocked by KTDA through under hand machinations.

A farmer picks tea in Murang’a.

The Kiru letter to the trade association in Mombasa in which they enclosed membership fees of Sh300,000 found its way to KTDA confirming ground for fraudulent shenanigans. The association’s chairman G Mugo could not explain how and in what capacity communication directed to him could be discovered at KTDA.
Among the information of issues to be investigated include:-
a) Fraudulent activities where KTDA deposited over Sh4 billion with small collapsed banks – Imperial Bank and Chase Bank – without due diligence while there are big banks and Central Bank of Kenya that could secure farmers’ money.
b) Payments to farmers which has remained far below average at Sh16 while Kiru Tea Factory Limited had proposed over Sh25 per kilogramme and other malpractices including corruption riddled investments.
c) Nonpayments to Kiru Tea Factory Limited funds from KTDA and use of state agents to frustrate officials of Kiru Tea Factory and threat to life which is before court and discussion of the same remains – among any of issues that KTDA has thrived on while frustrating over 8000 small holder tea growers.
d) Refusal by KTDA to order Forensic Audit (FA) as demanded by Kiru and other tea factories.
Raila’s move is seen as a major blow to Tiampati – Githiga Peter Kanyago (chairman of KTDA) axis who have thrived on misuse of their relationship even with Uhuru Kenyatta whose uncle George Muhoho they have tried to use to reach the president and undermine the rule of law. Uhuru himself has publicly acknowledged rot at the tea sector.
A case in point and which will pit Raila and president of the Court of Appeal Justice William Ouko on collision course is the second contempt of Court of Appeal against the six KTDA directors, 20 senior management officials of KTDA and three of KTDA subsidiary companies which was filed in Nyeri four weeks ago and which Justice Ouko has not seen it fit to give a hearing date.
Several lawyers too have now abandoned KTDA one being Ochieng Oduol, for unknown reasons. The lawyers are now asking why a judge who along with others had come out strongly to sentence once feared KTDA management to jail, is now adamant to give a hearing date for the second contempt of court case which has been filed by Paul Muite assisted and Marete and Company Advocates.
As these goes on KTDA is overflooding with employment of managers earning hundreds of thousands of shillings per month.
And why, farmers are asking, is an association that is meant to help tea farmers reap from their hard work joining hands to plunder at KTDA.
It is also emerging that there are more ripoffs at KTDA that run into billions of shillings that include lubricant oil supply, insurance, fertilisers package, motor vehicle supply and maintenance, printing, constructions and marketing. This is the largesse the top honchos are enjoying that they cannot let go of KTDA to farmer’s.