The Retirement Benefits Authority (RBA) has been given the greenlight to place Mumias Sugar’s #ticker:MSC staff provident fund under administration and freeze its assets following the miller’s failure to remit Sh97 million for retirement benefits and group life cover.
High Court judge Lucy Njuguna on Friday dismissed an application by Mumias Sugar and its staff provident fund to stop the RBA from appointing Roberts Insurance Brokers Limited as the provident scheme’s interim administrator.
Justice Njuguna in her ruling held that Mumias Sugar Company and Mumias Sugar Company Staff Provident Fund had not detailed what kind of loss they will undergo if an interim administrator is appointed to run the provident scheme until all contributions have been regularised.
The judge added that Mumias Sugar’s staff were the ones at risk if their retirement contributions remain unremitted.
“Other than the allegations that they will suffer irreparable loss, Mumias Sugar Company and Mumias Sugar Company Staff Provident Fund have not established what loss they will stand to suffer if the execution of the decision is not stayed. In any case, it is the employees who will continue to suffer loss if their contributions remain unremitted.”
“I find that the application is unmerited and the same is dismissed,” Justice Njuguna said in her ruling.
Mumias Sugar and its provident fund had claimed that the administration was done before they were given a fair hearing by the RBA, and that the move had caused confusion among its members.