MPs raise concerns over delayed dues owed to ex-Pan Paper Mills workers

The National Assembly Committee on Implementation has faulted the Principal Secretary of the State Department for Industry, Juma Mukhwana, for the delayed payment of terminal dues owed to former employees of Pan African Paper Mills.

In a meeting chaired by the Embakasi West MP, Mark Mwenje, who is also the deputy minority whip, the lawmakers expressed concerns over what they termed as lack of goodwill from the ministry of investments, trade and industry to resolve the matter which has been pending since 2019.

The Committee urged the state department to consider allocating a part of the monies due to the former workers in the forthcoming Supplementary Estimates.

They also asked the department to factor the balance in their next budget proposals before the departmental committee on trade, industry and co-operatives.

The PS had been invited 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.

The PS suggested that while the state department was not primarily responsible for settling these dues, it was actively working to resolve the matter.

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Mukhwana told the lawmakers that the ministry was not involved in the valuation of assets and liabilities of the Pan African Paper Mills adding that it is the joint receivers – Messers, Muniu Thoithi and Kuria Muchiru and the ministry of finance that had been involved in the process.

The PS who tabled a list of 1,349 former employees told the committee that his ministry and that of finance had, however, been directed by the National Assembly through the Committee on Implementation to undertake verification of all ex-employees of the defunct company, a process that they had completed successfully.

However, the lawmakers led by Mwenje told the PS that his responses were unsatisfactory.

“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,” Mwenje said.

It was revealed that in November of last year, the Principal Secretary of the State Department for National Treasury had written to Mukhwana, requesting the ministry to prioritize settling the dues according to the ceilings approved in the 2022 Budget Policy Statement.

Members termed the 15-year wait unfortunate, but emphasized that justice has to be delivered on the matter.

They expressed concerns that some of the former workers may not be alive to enjoy their dues when they are finally paid.

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).