The former head of the Kenya Film Classification Board, Ezekiel Mutua, has been asked to return Sh27 million paid in irregular salary.
In a ruling by the State Corporations Appeal Tribunal, Dr Mutua was surcharged after the KFCB board increased his salary from Sh348,840 to Sh1,115,850 when he was given a second three-year term.
The Inspectorate of State Corporations had declared the contract renewal as irregular and unlawful, arguing that it was done without the input of the Salaries and Remuneration Commission (SRC), State Corporations Advisory Council and the approval of the Cabinet Secretary.
According to the inspectorate, the government issues circulars to guide the implementation of the SRC Act in the public sector.
But angered by the declaration, Mutua challenged the matter at the State Corporations Appeal Tribunal.
And in its ruling last month, it upheld the surcharge, and instructed Mutua to refund the millions.
Mutua served for his first term from October 26, 2015 , up to October 21, 2018, and nearing the expiry of his first term, he requested for a renewal of the contract. The board chairperson, in a letter dated May 14, 2018 to the Cabinet Secretary for Sports and Heritage, asked for the CEO’s contract renewal.
But in his response a few days later May 29, the CS made it clear he did not intend to offer Mutua another term.
“However, and contrary to the Cabinet Secretary’s response, the board, through a letter of June 7, 2018, went ahead to renew the contract of Mutua as the CEO for a further three years with effect from October 26, 2018,” says the ruling.
The board directed the Human Resource and Administration committee to review and provide guidelines on Mutua’s salary increment based on his past performance.
In a meeting on January 31, 2019, the ruling noted that committee had divergent opinions, but the board went ahead and approved the raise.
On the same day, the board informed the CS, who wrote back on April 30, 2019 declining to approve the salary increase.
“The Cabinet Secretary also directed the board to recover any amounts that may have been paid in respect of the proposed salary increment in case the board had implemented it,” reads the ruling.
In his defense, Mutua pointed the finger at the board. Mutua argued that he continued “to work and earn a salary without any objections, reservations and or queries from the Cabinet Secretary, and it made him believe that he was discharging his duties legitimately and he had been properly appointed by the board.”
Also surcharged alongside Mutua was Nehemiah Kipkoech, a board member, for the irregular approval of the pay increment.