Updated Monday, February 25 2013 at 00:00 GMT+3
By Erastus Mulwa
KENYA:? Coffee farmers in Kangundo and Matungulu districts, Machakos County have called on the Government to step in and save their factories from imminent auction by creditors and former employees.
The farmers drawn from at least three coffee societies, including Sengani and Kyaume -both in Matungulu District, as well as Mbilini in Kangundo District have expressed fears that they would incur huge loses should their creditors make good their threat to wind up their coffee societies owing to unsettled debts running to millions of shillings.
In a letter dated January 22 this year, addressed to the chairman of Sengani Farmers Co-operative Society Ltd, several creditors and former employees have through their lawyer Anthony Mulekyo, issued a notice of intention to wind up the society.
According to the notice, the petitioners are demanding a prompt payment of a cumulative amount of Sh2,400,239 together with an interest at court rates, failure to which winding up against the society shall commence.
Interest
The letter further alleges the debt had been accruing for a long period, and that the society had breached all consents entered into between all parties in court.
?By copy of this letter, we have taken liberty to inform the PS, Ministry of Co-operatives of our intentions to file a winding up and a petition cause under section 64 of the Co-operative Societies Act, unless the outstanding total of Sh2,400,239 is paid as demanded together with accrued interest,? reads the notice in part.
Credible sources have confined to The Standard that similar notices have been issued to Kyaume and Mbilini farmers? co-operative societies.
The debts, The Standard established, relate to unpaid salaries and benefits, legal and accounting fees as well as NHIF/NSSF deductions by the petitioners which the management committees have been accused of failing to deposit with the said statutory institutions.
On Sunday, area DCO Maisha Muthoka confirmed he disbanded the Sengani management committee after it emerged officials had been engaging in corrupt practices. ?I convened a special general meeting of the farmers on February 21 where members appointed an interim committee to investigate the activities of the former office bearers and table a report within 90 days,? said Muthoka.
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