Ex-Mumias CEO Nashon Aseka awarded Sh12million for illegal sacking
Former Mumias Sugar Company chief executive officer Nashon Aseka has been awarded Sh12 million by the Employment court for illegal termination.
Justice Stephen Radido found the sacking of Mr Aseka unlawful as the former employer did not justify the reasons for the termination.
Mr Aseka was fired in July 2018 for allegedly engaging a financial consultant to secure funding for the miller, without consulting the board. Then, the miller was facing financial troubles.
“The court, therefore, finds that the termination of the Claimant’s employment was devoid of substantive fairness,” the judge said.
"The court also finds that the respondent(Mumias board) was in breach of contract in respect to non-payment of salaries and accrued leave" Justice Radido added.
Evidence presented in court showed that Mr Aseka’s contract was to expire on June 15, 2020, but he was shown the door after committing the collapsed miller to the financial consultancy agreement in April 2018.
Then, Mr Aseka said the company was facing financial constraints, which resulted in salary delays.
The consultant, Mr Issa Uwimana, was to assist Mumias Sugar secure technical financial funding of at least $250 million9Sh34.39billion) and a maximum of $500 million(Sh68.78 billion).
The arrangement with the African Female Reintegration Centre Foundation (AFRCF) on March 28, 2018, allegedly proceeded without approval and notification to the Board, a decision that exposed the company to further risks associated with the unauthorised consultancies.
Mr Uwimama would be entitled to a $10,500(Sh1.44 million) facilitation fee.
He was suspended in June 2018 for 21 days to enable the company to carry out investigations. The period was later extended for another 14 days and he rushed to court to challenge the move arguing that it was unlawful.
Mr Aseka was later invited for a disciplinary hearing as the court process was pending and later fired.
During the hearing, he told the court that the company owed him salary arrears of Sh9.6 million and accrued leave days.
He defended the decision to engage the consultant saying he informed the board but the members asked for time to ponder about the move.
Justice Radido ruled that the board should have isolated the policies which required the CEO to consult with and or seek its approval before signing the consultancy agreement.
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He said the company was also required to demonstrate that approval of the Board was required before payment.
“There was also no evidence as to whether the Board’s role was policy guidance or part policy guidance and part management with respect to the consultancy agreement dated 29 April 2018 or the consultancy arrangement with African Female Reintegration Centre Foundation (AFRCF) dated 28 March 2018,” the judge said.
The judge by dint of sections 43 and 45 of the Employment Act, 2007, the employer is expected to justify and prove the fairness and validity of the reasons for dismissing an employee.
He ordered the company, which is currently under administration, to pay Mr Aseka salary arrears, accrued leave of Sh1.2 million, and compensation of one-month salary totaling Sh12 million. BY DAILY NATION



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