Court refuses to review ex-dairy workers case
Jul 16, 2008
THE High Court has rejected a Government request to cancel consent judgments in which it had committed itself to pay billions of shillings as compensation to former employees of the defunct Dairy Corporation.
By Hillary Nsambu
THE High Court has rejected a Government request to cancel consent judgments in which it had committed itself to pay billions of shillings as compensation to former employees of the defunct Dairy Corporation.
Justice Stella Arach-Amoko last Friday instead advised the Attorney General to go back and explain his objection to the court that awarded the payments.
The employees were retrenched when the Dairy Corporation was sold to Sameer Agricultural Products in 2006.
About four groups of the workers then sued the Government for compensation. All the four suits were settled out of court and the consent judgments were entered on court record.
In one consent judgment, the employees were awarded sh1.3b plus interest of 25% p.a. from 2002 till payment in full. The Government was also supposed to pay costs of 8% of the total sum.
However, when the Privatisation Unit and the finance ministry refused to pay the money, the ex-workers sought and were granted permission to attach the company’s property.
This prompted the Attorney General to request for cancellation of the consent judgments, saying the calculation of the payments was based on wrong formulae, leading to an excessive award.
But Justice Arach-Amoko dismissed the claims of wrong formulae and ruled that the former employees were entitled to their compensation.
“The Attorney General argument is intended to re-open the case, which is not the purpose of this application for a review of the consent judgments,†she ruled.
THE High Court has rejected a Government request to cancel consent judgments in which it had committed itself to pay billions of shillings as compensation to former employees of the defunct Dairy Corporation.
Justice Stella Arach-Amoko last Friday instead advised the Attorney General to go back and explain his objection to the court that awarded the payments.
The employees were retrenched when the Dairy Corporation was sold to Sameer Agricultural Products in 2006.
About four groups of the workers then sued the Government for compensation. All the four suits were settled out of court and the consent judgments were entered on court record.
In one consent judgment, the employees were awarded sh1.3b plus interest of 25% p.a. from 2002 till payment in full. The Government was also supposed to pay costs of 8% of the total sum.
However, when the Privatisation Unit and the finance ministry refused to pay the money, the ex-workers sought and were granted permission to attach the company’s property.
This prompted the Attorney General to request for cancellation of the consent judgments, saying the calculation of the payments was based on wrong formulae, leading to an excessive award.
But Justice Arach-Amoko dismissed the claims of wrong formulae and ruled that the former employees were entitled to their compensation.
“The Attorney General argument is intended to re-open the case, which is not the purpose of this application for a review of the consent judgments,†she ruled.