Pensions official accused of delay to pay retirees

Lawyer Dominic Kimatta (left) for the retired teachers addressing journalists outside the Nakuru High Court on July 31, 2018. PHOTO | AYUB MUIYURO | NATION MEDIA GROUP

What you need to know:

  • Shem Nyakutu said to be frustrating the payment of claims to the former teachers and had continuously disobeyed court orders.

  • Their unpaid dues have been accruing interest at the rate of 14 per cent per annum since the initial judgement was made by Justice David Maraga on October 23, 2008 against the TSC.
  • The retirees who were covered by the 1997 agreement between the government and Knut first sued TSC in 2006, claiming unpaid lump sum salary raises and accrued pension from July 1997.

The Director of Pensions is on the spot over delay to disburse part of Sh42.3 billion owed to 52,000 retired teachers.

Justice Janet Mulwa on Tuesday heard that Mr Shem Nyakutu was frustrating the payment of claims to the former teachers and had continuously disobeyed court orders.

During the mention of the case, the judge was told that Mr Nyakutu had disregarded court orders, including one issued in 2016, and had failed to speed up the payment of the pensions and salary arrears.

The retirees’ lawyer, Mr Dominic Kimatta, told the court that the list of some 1,623 names of the retired teachers, which the pensions office had produced and claimed had been cleared, was erroneous and meant to hoodwink the court to believe that it was complying with the orders.

FOUR TIMES

Mr Kimatta said the list contained names that had been repeated to inflate figures.

“The irregularities in the list by the Director of Pensions is in complete disregard of court orders, which required him to give a comprehensive report on the progress of the payment,” the lawyer said.

In the documents submitted in court, names of some of the retirees appeared as many as four times, indicating  money was deposited in different banks.

The retirees said they had received payment vouchers from the pensions office yet no money was sent to their banks.

PROCESSED NAMES

The court also heard that the Director of Pensions had included the names of teachers, who had retired in 2004, 2005 and 2006 in the list of those who retired in 1998, 1999 and 2000 that the court had directed them to pay.

The Teachers Service Commission  distanced itself from the list, saying that it had only processed names of the teachers who retired from 1997 to 2003.

“We have processed 25,000 claims of the teachers who retired from 1998 to 2003. If the Director of Pensions purports to have paid claims for 2005 and 2006, let the court know that we were not part of the process,” said TSC's lawyer, Mr Calvin Anyuor.

INVESTIGATED

Justice Mulwa ordered the director to file the vouchers of every person listed among the 1,623 and provide proof in writing of all monies his office has received from the government for the retirees’ payments. He should also confirm the total amount paid out as well as the balance as at June 30.

The retirees want the office investigated. The matter will be heard on September 25.