Former Finance and Administration Manager of the State-owned Kenya Broadcasting Corporation (KBC), fired over alleged misappropriation of funds, has lost his bid in court for compensation over unfair termination.
Jeremiah Musyoki wanted the Employment and Labour Relations Court to also direct the payment of unpaid terminal dues.
In challenging his dismissal, Mr Musyoki told the court that his problems started after declining to approve a 40 percent partial payment of Sh330 million to Star Times Software Technology Company in December 2019.
However, Justice Christine Baari dismissed the case upon finding that Mr Musyoki’s sacking was procedurally and substantively fair and that KBC’s board of directors had genuine reasons to terminate the employment.
Questionable integrity
The judge said Mr Musyoki did not challenge the audit report produced by KBC in evidence which formed the basis for his dismissal.
“In my considered view, the findings of gross negligence of duty, abuse of office, and questionable integrity as an accounting officer in charge of the KBC’s funds, is fair and justified ground to dismiss the Claimant. These are no doubts fair reasons upon which a reasonable employer would dismiss,” said Justice Baari.
Mr Musyoki was sacked in 2021 following an audit that unearthed financial malpractices and irregularities, which were attributed to him.
One of the reasons for the dismissal, was alleged gross negligence of duty, improper conduct, and misappropriation of the corporation’s funds amounting to Sh6 million.
Justice Baari said the audit report placed before the court indicated that Mr Musyoki received Sh4.5 million out of which he refunded Sh799,700, leaving a balance of Sh3.6 million. The audit covered between July 2019 and February 2020. Mr Musyoki said he was never involved in the audit.
“The report shows that other employees received the corporation’s money irregularly during the tenure of the claimant, hence the charges levelled against him, the ensuing disciplinary action, and the subsequent dismissal,” said the judge.
In his claim, Mr Musyoki stated that on December 24, 2019, he received a call from Ms Josephine Mwaniki requesting him to approve a 40 percent online payment to Star Times Software Technology Company Limited for the delivery of software equipment to the Corporation worth Sh330 million.
He contended that he declined to approve the said payment for the reason that he was away for his Christmas break and could therefore not verify the said equipment without the input of the software technical staff.
On the procedural fairness of the dismissal process, the court found that Mr Musyoki appeared before a disciplinary committee, and he had appealed against the dismissal.
"It is not disputed that the claimant was issued a notice to show cause letter spelling out the charges levelled against him. It is similarly true that the claimant responded to the show cause letter, and although he denied in his pleadings having appeared before a disciplinary committee, he admitted on cross-examination that he did," said the judge.
KBC adduced one witness in court, Ms Pauline Etyang (senior internal auditor), to testify in support of the decision of the Board of Directors to sack the finance manager.
Ms Etyang’s testimony was that another staff member, who was in charge of petty cash, was also dismissed.
She testified that the cashier had control of petty cash under the authority of the Finance and Administration Manager.
