KPCU crisis turns ugly as rival team takes over office
What you need to know:
- KPCU has operated under dual registration. Mr Muchiri accused the current directors led by Mr Gatei of selling some assets but the later said Mr Muchiri owed the union Sh2.5 million borrowed when he was the director.
- Wrangles have rocked the union since the commissioner for co-operatives Mr Patrick Musyimi called for elections that were opposed by the board led by Mr Gatei saying that its term will end in 2016.
The leadership wrangles at Kenya Planters’ Co-operative Union took a new twist Friday after a group backed by the ministry for Industrialisation took over offices despite a court order against such a move.
The newly elected directors led by Member of Parliament for Manyatta constituency, Mr John Muchiri, stormed Wakulima building under heavy police guard. They later issued a statement saying they had taken over the management of the troubled union.
However, minutes later, Mr William Gatei, who leads the other set of directors arrived and accused the ministry of Industrialisation officials for causing confusion at the union.
The takeover happened even with a court order issued by Justice Mumbi Ngugi restraining that the new board elected through orders to the commissioner from holding office. The court order was published in Friday’s Daily Nation.
“That the grant of leave to operate as a stay to restrain the convention of taking of any steps towards the convention of a meeting of members, whether special general meeting or annual general meeting, endorsement of the purported directors elect of KPCU and further restrain the said directors from assuming office in any other way interfering with management and operations pending the hearing on August 18.”
SELLING ASSETS
Mr Gatei’s group is registered under the Companies Act while the recently elected group is registered under the Society Act.
KPCU has operated under dual registration. Mr Muchiri accused the current directors led by Mr Gatei of selling some assets but the later said Mr Muchiri owed the union Sh2.5 million borrowed when he was the director.
“The board had started selling some properties worth Sh800 million. We shall support you and I will mobilise the members of parliament,” Mr Muchiri said. The two did not provide proof of their accusations.
Wrangles have rocked the union since the commissioner for co-operatives Mr Patrick Musyimi called for elections that were opposed by the board led by Mr Gatei saying that its term will end in 2016. He said the current wrangles have been engineered with the objective of selling the assets farmers by some government officials.
The wrangles threaten to scuttle the revival of KPCU that has been under receivership for five years, and was recently lifted after Sh100 million was paid and the board negotiated for a lower amount of Sh300 million to be paid in 10 years without interest.
KPCU was placed under receivership by Kenya Commercial Bank in October 2009 for failing to pay Sh644 million.
