Kenya Power on spot over Sh27m send-off for ex-boss Bernard Ngugi
The legality of a Sh26.82 million exit payment provided by Kenya Power to its former managing director Bernard Ngugi, who resigned unexpectedly from the utility in August 2021, has been called into question by Auditor-General Nancy Gathungu.
She stated that the send-off package was disbursed in violation of the law, which requires approval from the State Corporation Advisory Committee (SCAC).
“The payment was subject to approval by the Ministry of Energy and the National Treasury who both granted approvals on May 25, 2022 and April 11, 2022,” said Ms Gathungu.
“While not objecting to the payment, the National Treasury advised that the same be subjected to approval of SCAC. However, SCAC approval was not obtained before payment of the gratuity of Sh26.82 million as advised,” she said.
Mr. Ngugi resigned from the organization fifteen months before the expiration of his contractual obligations. Engineer Rosemary Oduor assumed the role of interim managing director, succeeding her previous position as general manager for commercial services.
However, Ms. Gathungu has disclosed that Mr. Ngugi’s exit pay package also violated the company’s staff regulations and procedures, which state that an employee forfeits any gratuity or terminal leave pay if they resign before the expiration of their contract.
ย The Auditor-General stated that Sh2.52 million of the exit payment was paid instead of notice. However, since Mr. Ngugi resigned in this instance without providing notice, he was obligated to pay the company a notice of Sh2.28 million.
ALSO READ:
- Former Deputy President Rigathi Gachagua Reveals the Truth Behind His Impeachment
- Guatemalan and Salvadoran Troops Land for Haiti Mission
- Puzzle as Woman Is Found Dead in Mysterious Circumstances Close to Her Home
- Cross-Border Attack: Nigerian Gunmen Kill 5 Cameroonian Soldiers in Retaliation
- The Late KNCHR Chairperson Roseline Odede’s Illustrious Career, Awards & Legacy
“However, the payment was irregular since it is only payable to an employee whose employment contract is terminated by the company without giving notice. In the circumstances, the regularity of Sh26.82 million exit pay could not be confirmed,” she said.
The Auditor-General’s findings validate the notion that Mr. Ngugi’s departure was precipitous, and he might have fallen prey to a strong State pressure to overhaul the utility.
Geoffrey Muli, who was appointed interim Managing Director in May of last year, succeeded Ms. Oduor a little less than ten months into her tenure.
Kenya Power appointed Dr. Joseph Siror as the substantive managing director in May of this year, almost two years after Mr. Ngugi’s departure.
Before assuming the corner office position at Kenya Power, Dr. Siror was the general manager responsible for technical services at the Kenya Electricity Transmission Company (Ketraco).
In October 2019, Kenya Power appointed Mr. Ngugi, a former director of its procurement division, to the position of chief executive officer as part of an effort to improve the power monopoly’s financial position in the wake of a string of losses.
Kenya Power on spot over Sh27m send-off for ex-boss Bernard Ngugi
