Court freezes Moi University bank accounts over Sh53.5 million owed to medics
By Lucy Mumbi |
Justice Hellen Wasilwa, presiding over the case, instructed the National Bank of Kenya’s Eldoret branch to withhold funds until the matter is resolved.
The Employment and Labour Relations Court has dealt Moi University another blow by permitting a doctors' union to seize its bank accounts due to unpaid salary arrears amounting to Sh53.5 million.
The Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) signed a return-to-work agreement with the university in July 2024, committing the institution to settle the arrears within 60 days. However, the union filed a court application after Moi University failed to comply.
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Justice Hellen Wasilwa, presiding over the case, instructed the National Bank of Kenya’s Eldoret branch to withhold funds until the matter is resolved.
"The application dated November 8, 2024, is allowed in terms of prayer number ‘b’,” the judge ruled, directing the union to serve Moi University and the Ministries of Health and Labour and Social Protection with court documents.
The court had previously granted KMPDU the authority to seize funds if the university failed to honour the agreement signed on February 11, 2022, and approved by Justice Anna Ngibuini Mwaure in July 2024.
The matter is scheduled for further directions on Tuesday, November 19, 2024.
Meanwhile, KMPDU’s lawyer, Henry Kurauka, emphasised the importance of upholding court orders.
“The honourable court should ensure safeguards to the rule of law. To do so, its orders must be complied with by all parties in matters before courts,” he said.
Doctors had gone on strike earlier, accusing Moi University of withholding their salaries and clinical allowances, which had already been approved and released by the Treasury.
In her July ruling, Justice Ngibuini observed that the university did not dispute owing the money or signing the agreement.
Corruption allegations
Amid these financial and legal challenges, Moi University is also grappling with corruption allegations.
The Ethics and Anti-Corruption Commission (EACC) has summoned Vice-Chancellor Prof. Isaac Kosgei and other senior officials to respond to claims of fraudulent infrastructural projects worth Sh2.19 billion.
The summons, issued as part of a probe into the alleged theft of public funds, requires Prof. Kosgei to appear at the EACC North Rift regional offices in Eldoret on Wednesday, November 20, at 9 am.
He will be accompanied by Chief Accountant Egla Samoei, Head of Procurement Wilson Bett, and Head of Development Unit Moses Kipkulei.
EACC spokesperson Eric Ngumbi disclosed that Kosgei is accused of obstructing investigations by failing to provide crucial documents, despite several reminders.
The vice-chancellor has also been ordered to produce original records, including minutes from 18 special meetings.
The developments come as the university faces mounting scrutiny over allegations of financial mismanagement and its failure to meet its obligations to employees.
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