Lavington Security is accused of failing to remit Sh98 million in workers’ deductions to Lavington United Sacco Society Limited, forcing the sacco to file a complaint with the commissioner.
In the court papers, the security firm admits to owing the sacco but accuses its clients among them the Judiciary of failing to pay for services rendered.
A case involving a security firm and the Department of Cooperatives Development will come up before the High Court Tuesday morning to confirm whether the firm has deposited Sh35 million as directed by a judge.
Appearing before Justice Pauline Nyamweya on January 17, Lavington Security was given seven days to deposit the sum as a condition for unfreezing its accounts in a dispute over non-remittance of staff sacco deductions to the tune of Sh98 million.
The Commissioner for Cooperatives Development Mary Mungai issued agency notices to the firm’s bankers, Standard Chartered and Transnational Bank, to freeze the security company’s bank accounts and effectively leaving January salaries of an estimated 10,000 staff at stake.
The law stipulates appointed agents to transfer funds available in the accounts they hold to the sacco within 30 days of receiving an agency notice.
The firm moved to court, saying the freeze had grounded its operations and some of its employees had resorted to a strike.
But in reply filed in court, Ms Mungai said they had imposed the minimum statutory compounded interest for non-remittance and allowed the firm to access its account at StanChart to normalise its operations.
Instead of complying, the commissioner said, the company rushed to court and filed the case.
Lavington Security is accused of failing to remit Sh98 million in workers’ deductions to Lavington United Sacco Society Limited, forcing the sacco to file a complaint with the commissioner.
In the court papers, the security firm admits to owing the sacco but accuses its clients among them the Judiciary of failing to pay for services rendered.
“The continued freezing of the applicant’s bank accounts has completely paralysed its operations as the applicant cannot access funds to meet its day-to-day operations such as buying fuel for its response teams, airtime for its supervisors and paying guards,” says Jonah Kiprotich Telo, a director of the company, in a court affidavit.
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