Ex-KRA employee wins Sh15m for wrongful dismissal 20 years ago

A court has ordered the Kenya Revenue Authority to pay a former employee Sh15 million in compensation for unlawfully dismissing him before rescinding the decision and retiring him in the public interest.

The Employment and Labour Relations Court directed the taxman to pay Mr Munir Masoud, whom it retired over 20 years ago, the money by October 1 or interest will start accruing until he is fully paid.

The court said the KRA had ill motives against Mr Masoud and its intent was to settle scores and use him as a scapegoat to cover the misconduct of others.

Mr Masoud was dismissed in connection with the misplacement of bond securities for sugar in transit to the Democratic Republic of Congo, then called Zaire, the court heard.

Officials who failed to impound the sugar and allowed it to be sold in the local market in Mombasa were never punished.

Justice Byram Ongaya agreed with Mr Masoud’s submission that a public body such as the KRA must not indulge in facilitating, aiding and abetting corruption.

“The court further reckons that the war on corruption shall not only be won by punishing perpetrators but also by protecting and judiciously rewarding the anti-corruption soldiers,” said Justice Ongaya.

He also declared that the taxman destroyed Mr Masoud’s career in the organisation and outside.

Justice Ongaya ruled that Mr Masoud had established that his termination was unfair and baseless as he was targeted for performing his duties in accordance with the law and his official authority as a KRA employee.

“And by that reason he was victimised and punished in exclusion of other officers he has established appear to have failed in their responsibilities and duty,” Justice Ongaya said.

Justice Ongaya also ruled that Mr Masoud suffered inequity and mistreatment that amounted to discrimination.

“The court has considered the claimant’s long service and his resolution to otherwise be an honest public officer keen to act in the best respondent’s interests. He lost his employment in the most unfair and oppressive manner,” said Justice Ongaya.

Justice Ongaya added that public officers who act in accordance with the values and principles of public service, integrity and honesty will receive protection and exoneration by the courts in the event of victimisation for their ethical performance in protecting the public interest.

He said that the award was not made to punish the taxman, as no punitive damages were sought, but meant to make up for the harm Mr Masoud suffered as a result of unfair discrimination and treatment.

The court heard that on January 8, 1998, a consignment of 160,000 bags of Brazilian white refined sugar in transit to Zaire from the port of Mombasa was diverted to the Kenyan market without relevant taxes being paid. 

About 120,000 bags of the sugar were diverted from a customs-controlled warehouse and 40,000 found and seized at a warehouse in Mombasa owned by an MP.

The diversion was made with the full knowledge, facilitation, connivance and aid of KRA senior managers before Mr Masoud was summarily dismissed over allegations of misconduct.

Mr Masoud argued that his dismissal violated the KRA’s code of conduct and rules of natural justice and was not justified.

He argued that his retirement in the public interest was done in bad faith merely to frustrate him and that the KRA was not justified in its action.

For its part, the taxman denied that his retirement was meant to frustrate him.

The KRA claimed Mr Masoud received equal treatment under the law at the time he was retired.

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