KTDA seeks to have court order to audit its books quashed

A farmer picking tea in Murang'a. KTDA has applied to have the audit orders issued by Murang’a High Court vacated, arguing that the Auditor-General has no legal mandate to audit the agency since it is a limited liability company. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • KTDA further accused the Murang’a County government of seeking to play politics through a judicial process.
  • The agency also wants the court to consolidate the suit with a 2014 petition at the Kericho High Court.
  • High Court Judge Kanyi Kimondo directed that the fourth application be heard first.

The Kenya Tea Development Agency (KTDA) has applied to have the audit orders issued by Murang’a High Court vacated, arguing that the Auditor-General has no legal mandate to audit the agency since it is limited liability company.

KTDA filed the application following a petition by the Murang’a County government which successfully sought to have its 2019 accounts audited following reduced tea earnings.

Through lawyer Mwangi Kibicho, KTDA says that the office of the Auditor-General is an independent office mandated to audit and report on the accounts of State organs and public entities as well as entities funded using public funds.

AUDITOR INDEPENDENT

“The Auditor-General is a holder of a public an independent office and pursuant to the provisions of Article 249 (2) (b) of the Constitution, is not subject to control or direction by any person or authority. The respondent is a limited liability company and the Auditor-General has no legal mandate to audit the respondent,” the lawyer argued.

KTDA further accused the Murang’a County government of seeking to play politics through a judicial process which it says is an abuse of court processes.

CONSOLIDATE CASES

The agency also wants the court to consolidate the suit with a 2014 petition at the Kericho High Court where the Murang’a County government is listed as an interested party.

KTDA also wants the two matters, owing to their gravity and seriousness, be heard by an uneven number of judges.

“The gravity and peculiarity of the issues in both petitions necessitate that it be dispensed with by an uneven number of judges being not less than three assigned by the chief justice as articulated under Article 165 (4) of the Constitution,” the petition seen by the Nation reads.

Governor Paul Chepkwony, in a suit, sought compensation for over 400,000 small-scale tea farmers in the western rift for alleged exploitation by major players in the tea sector.

RETURN SH87BN

He also wanted the court to compel KTDA to return Sh87 billion to farmers in the western rift for allegedly charging them twice for management services while accusing the agency of mismanaging the sector, a situation that he claims has led to lower returns for smallholder tea farmers.

High Court Judge Kanyi Kimondo directed that the fourth application by KTDA to determine whether the matter can be referred to the chief justice will be heard first, saying other applications will be determined after the hearing and determination of this application.

“The representatives of both parties have agreed that we first hear and determine the fourth prayer and I hereby set November 29 as [date for] inter partes hearing,” the judge directed.

WA IRIA REJOINDER

In a quick rejoinder, Murang’a Governor Mwangi Wa Iria, who has sponsored the audit suit, said that farmers are also seeking to be enjoined in the matter and that they would oppose the application to have the matter transferred to Nairobi.

“Why does KTDA object to be audited? Why do they want the case transferred to Nairobi? We shall ask these hard questions as farmers prepare to file an application seeking to be enjoined in the matter,” he said.

Last week the Murang’a County Assembly also declared its intention to be enjoined in the matter.