Parliament directs Treasury to list all ex-Pan Paper staff for dues payment

Parliament has directed the Treasury and the Ministry of Industrialisation  to compile an authentic list of all former Pan Paper Mills employees within the next three months to facilitate payments due to the workers.

The parliamentary Finance, Planning and Trade Committee wants the Treasury and Industrialisation ministry to compute dues of all former employees of Webuye-based Pan Paper Mills with a view to clearing the payments as provided for under section 66 of the Employment Act, 2012 and other related law.

“The Government of Kenya, through the national Treasury avails (sic) funds within the 2017/18 financial year for payment of terminal dues to the former employees of the Pan Paper Mills Company Limited,” the committee said in a report tabled on Thursday.

The House team made the recommendation following a public petition nominated MP Patrick Wangamati presented to the National Assembly on behalf of the former workers.

President Uhuru Kenyatta in December promised that the government would allocate funds to pay former employees of Pan Paper.

The President spoke at the commissioning of the the plant following its acquisition by the Tarlochan Limited, a company owned by the Rai Group, at a cost of Sh900 million and renamed it Rai Paper Mills.

The investor is expected to inject more than Sh10 billion into Pan Paper over and above the purchase price in a period of five years.

READ: Billionaire Rai family buys PanPaper for Sh900m

The Rai Group has secured title deeds for the factory, the Competition Authority of Kenya approval and assignment of lease to the buyer.

The report said the 1,200 persons, who had been directly employed by Pan Paper Mills, are well known and that only computation of their dues needs to be undertaken.

“Since the collapse of Pan Paper, former employees have not been paid their dues as per section 66 of the Employment Act 2012,” the committee said in the report tabled by Subukia MP Nelson Gaichuhie.

The MPs said the Ministry of Industrialisation did not have proper records of all former Pan Paper staff.

“In the absence of authentic record, it would make their payment very difficult.. the committee recommends that the government…expedites compilation of an authentic list of all the former employees of Pan Paper Mills Company Limited within the next three months after the tabling of this report,” the MPs said.

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