Graft claims rock pyrethrum agency

A storm is brewing at the cash-strapped Pyrethrum Processing Company of Kenya (PPCK) following claims of funds mismanagement and corruption.

Workers claimed the top management of the agency, formerly the Pyrethrum Board of Kenya, is misappropriating funds through unnecessary seminars, trainings, road shows, exhibitions and irregular exorbitant procurements.

The newly appointed Managing Director Paul Lolwerikoi is also alleged to have allocated himself more than Sh2 million allowances for a period of one month he has been in office, claims that he denied.

Seven other managers in the firm are said to have used more than Sh10 million in a period of two months on unnecessary trips.

This comes even as the government moves to separate the functions of the Pyrethrum and Other Industrial Crops Directorate into commercial and regulatory.

The regulatory role is expected to be put under the Agriculture Fisheries and Food Authority in reforms that are intended to revive the sector, which has been on its death-bed for over a decade on what has been blamed on cartels.

On Tuesday, unionisable employees at the agency held a meeting to discuss the allegations, where they demanded that the Ethics and Anti-Corruption Commission (EACC) conducts investigations.

They later issued a statement through their shop stewards in the Kenya Chemicals and Allied Workers Union, Mr Willis Omolo and Mr Joseck Nyaanga, claiming that managers at the firm had formed a cartel and were squandering the meagre resources on misplaced priorities, crippling the agency’s operations.

They said the money should instead have been used to clear huge debts owed to farmers.

The employees also accused former MD Solomon Odera of running down the company during his tenure.

DETERIORATION
Workers who spoke to Nation cited a workshop at the Tumaini conference centre in Nakuru town, where the management is said to have spent nearly Sh1.4 million on food, fare and accommodation for the one-day event attended by unionised staff.

When the Nation visited the PPCK offices at Nakuru’s industrial area Thursday, there was little activity at the firm that used to be a beehive of activity in the 1980s when Kenya was the world’s largest producer of the crop, with 17,500 metric tonnes of dried pyrethrum flowers per year.

The production has since gone down due to the near collapse of the sector.

The workers said the company’s vehicles are grounded, making it difficult for them to pick flowers from farmers. They also complained of delayed salaries.

“The delays subject us to financial difficulties, resulting in suspension of key tasks including processing of flowers,” said one of the employees who sought anonymity.

They now want EACC to intervene and investigate what they termed as wanton misappropriation of funds.

However, when the Nation contacted Mr Lolwerikoi, he said he was very new in office and was not aware of the claims.

He denied that money had been wasted at the recent Tumaini workshop.

“The workshop was a success and was aimed at collecting views on the best way to revive the industry. I am not aware of any misuse of money, “he said on phone.

Efforts to reach Mr Odera for a comment bore no fruit as his phone was switched off.