The High Court has suspended the Retirement Benefits Authority’s (RBA) decision to place Mumias Sugar’s #ticker:MSC staff provident fund under administration after the miller failed to remit Sh80 million for retirement benefits and group life cover.
High Court judge Lucy Njuguna allowed Mumias Sugar and the Mumias Sugar Company Staff provident fund’s application seeking to stop the RBA from appointing Roberts Insurance Brokers Limited as the provident scheme’s interim administrator.
Justice Njuguna said she was satisfied that Mumias Sugar Company and the Mumias Sugar Company Staff Provident Fund had made a commitment to remit monthly installments needed to clear the unremitted arrears.
“In the premises, it’s only fair and just that the application (by Mumias Sugar and Mumias Sugar Company Staff Provident Fund) herein be granted. The same is allowed.”
The sugar company and the staff provident firm had moved to court to seek interim orders suspending the RBA’s decision until an appeal filed with the Retired Benefits Appeals Tribunal is heard and determined.
The RBA had placed the Mumias Provident Fund under administration on June 28, 2017 but Mumias filed an appeal at the Tribunal on July 10.
The sugar firm was at the time informed that the Tribunal was not fully constituted and could not sit to hear the application, prompting the petitioners to move to High Court.
The judge acknowledged that the applicants were desirous to have the RBA decision suspended as shown by the appeal which was filed without unreasonable delays.
Mumias told the High Court that since the administrator was to assume total control of the Provident Fund with the exclusion of the trustees it was bound to suffer irreparable loss.