Mater Hospital appeals Sh6.5m ex-staff award

The Mater Hospital has moved to the Court of Appeal to challenge a Sh6.5 million compensation award to its former director for unfair termination of employment.

The hospital has also secured a temporary relief after the Labour Court stopped the former director, Alexander Irungu, from demanding the compesation pending the filing, hearing and determination of the appeal.

However, the stay order is on condition that the hospital releases to Mr Irungu, who was Director of Operations and Administration, half of the award.

Justice Maureen Onyango also ordered Mater to provide a bank guarantee that will remain valid and binding until the appeal is determined. The hospital has 30 days to comply with the two conditions.

Mr Irungu was awarded Sh6,574,125 following a finding that his dismissal was unfair after the hospital failed to give valid reasons for termination.

He was sacked in February 2016 over allegations of irregularly awarding a tender to a company - Kenya Medical Engineering - which did not meet the requirements within the stipulated time frame.

In the termination letter signed by the hospital’s acting chief executive officer Agnes Chege, Mater had also alleged that Mr Irungu amended the procurement policy document to indicate that his office had the discretion to determine the awarding or rejecting of any tender in situations of urgency of items projects or services.

But the court ruled that the hospital failed to show that Mr Irungu had altered the tender policy as had been alleged.