Pan Paper workers protest over jobs loses

Written by Rosemary Wachiye 2011-08-27 12:16:00 Read 135 Times Aerial view of Pan paper Former workers of the stalled Pan Paper Mills in Webuye held protests in the town amid worries over their job lose on what they call conflict of interest among the management. The government is set to give its decision September over the possible revival of the plant that closed a year ago. Represented by Mr.Joseck Wafula, the workers disclosed that there is the existence of two centers of power that makes it hard for the workers to know from whom to take orders from. “There is the Katimbu’s team and Munguti’s team, now we don’t know who is above who and from whom we should take orders,” said Mr.Wafula The workers demand to be paid their terminal benefits for working for the company that has now accrued to Sh 400 Million. They complained of lack of communication to them leading to some working under hard conditions with no pay, others have been left out since its closure. “It’s painful to some of us who left immediately after the company’s closure while there are those who are still working and being paid as usual up to date, it’s so unfair,” said Mr.Wafula Mr.Wafula also noted that the company was working under bis-mill process that is very uneconomical as it leads to procurement of unnecessary goods for the company that is costly than if the factory was working on full time basis. They stated all these while addressing the Permanent Secretary in the Ministry of Industrialization Mr. Kibichu Karanja who had toured the company to check on its progress of reviving it. Attention was directed to embezzlement of funds meant for reviving the factory by the people appointed by the Ministry to facilitate its re-opening. The councilors from Webuye constituency led by the Municipal Mayor Mr.Ali Machani, wanted the outgoing Team Leader of the task force appointed to revive it Mr. John Munguti to account for all the cash bestowed to the company during his reign. Mr.Machani stated that, “The ones sent here to revive it are taking advantage of factors and instead misappropriating funds meant for procurement,” said Mr.Machani. “There is also a wrong procedure at the gate of denying entrance to people something that creates a problem giving the locals of the area an idea that that they are there to still,” he added. The Permanent Secretary in the Ministry of Industrialization Mr. Kibichu Karanja, responded to their complaints by wanting them to realize one fact that the Pan African Paper Mills is a private asset and not governmental. Adding that the governments’ contribution towards it was because it’s for the human interest its revival will offer job opportunities to the people of Kenyan and all the same contribute towards improving economy in Kenya. “As much as you are complaining and you want the government through our ministry to act there is so little the government of Kenya can do because it only owns 39% of the company shares and the rest, is owned by private sector,” said Mr. Karanja He stated that Pan African Paper Mills’ shares were owned by Barclays Bank 1.1%, 3.6% by another company, 5.4% by ICDC and 54.8% by the Indian Opin group. He also surprised the workers in his speech when he mentioned that the closure of the company was a blessing in disguise to the people of Webuye since it gave them an opportunity to live in hardship but there was light at the end of the tunnel of being the owners of the company from the Asians that fled. He also made it clear to the former workers to note that its revival is the only solutions to all the problems and complains they had risen. “The monthly turnover of the company before its closure was, Sh.500 Million and there for that means that even in working for only a month the comp-any can be able to pay off the workers and in the next month’s income be able to settle the debts it owes,” said Mr.Karanja The Pan Paper Mills owed the long term lenders whose loan security was the company’s machinery, Sh.6 Billion, the short term lenders whose security was floating assets, spares, stocks, Sh.1.265 Billion and it owed the non secured creditors who are KPLC, Kenya Forestry and Kenol Kobil, Sh. 1.8 Billion, that totals up to Sh.10 Billion. With that said the workers have lost hope in its revival, many think it has been a sing song that it will be opened soon but it never comes to pass. Mr.Karanja stated that the government had released Sh.600 Million, Sh.200 Million meant for operation and Sh.400 Million for paying of the short term lenders.