Parliament urged to probe Patrick Musyimi on Kenya Planters’ Co-operative Union woes

Kenya Planters’ Co-operative Union chairman William Gatei outside the union’s offices at Wakulima House in Nairobi on August 15, 2014. PHOTO | MARTIN MUKANGU |

What you need to know:

  • Mr Gatei accused the commissioner of instigating chaos through holding illegal elections.
  • On Friday, the directors forced their way into the union’s offices at Wakulima House.

The Kenya Planters’ Co-operative Union board wants Parliament to institute an inquiry into the manner in which the Commissioner of Co-operatives, Mr Patrick Musyimi, has handled revival of the union.

KPCU chairman William Gatei called for the investigation on Monday moments after the commercial court in Milimani, Nairobi, presided by Mr Justice Weldon Korir, restrained a parallel board elected under the directive of the commissioner from taking office until a case filed against them is determined.

Mr Gatei accused the commissioner of instigating chaos through holding illegal elections that have brought back directors who presided over the collapse of KPCU, with the objective of having it driven under again.

“The commissioner sits on the board of Kenya Coffee Co-operative Exporters, which is in competition with KPCU for business. We had leased some facilities to KCCE, but we have declined to renew the contract. The commissioner is an interested party and is instigating the chaos to benefit KCCE,” Mr Gatei said on Monday after resuming office.

Some of those elected were barred from contesting elections by a parliamentary committee on agriculture, led by Mr John Mututho, in July 2012 over mismanagement of the union, leading to its placement under receivership.

He said the conduct of Mr Musyimi was suspicious as he had not offered any assistance in lifting KPCU’s receivership but had developed sudden interest in its affairs, leading to the current confusion.

On Friday, the directors forced their way into the union’s offices at Wakulima House, under heavy police guard in defiance of court orders restraining them from convening meetings or interfering with operations of the union.

RETURNED TO OFFICE

But Mr Gatei and his board, elected in 2013, on Monday returned to office following the court order, saying the management would continue with efforts to revive the union, starting with payment of farmers’ arrears. They insisted they had two more years in office.

KPCU was placed under receivership in October 2009 by Kenya Commercial Bank over a Sh644 million debt. The two were locked in court disputes over the figures.

The board negotiated for the amount to be reduced to Sh400 million. Some Sh100 million was paid, leading to the lifting of receivership. The remaining Sh300 million will be paid over 10 years without interest.