Broke Kenya Broadcasting Corporation (KBC) has failed to remit employee retirement benefits amounting to Sh984.3 million, exposing the serious cash flow crisis it is facing and economic pain its staffers are faced with.
According to Auditor General Nancy Gathungu’s report for year ended June 2020, the State broadcaster has had difficulties in honoring the dues.
“Management attributed the delay to remit the deduction to its inability to settle its obligations as and when they fall due,” the report reads in part.
KBC is now at the brink of incurring heavy penalties and interest if continues to fail in remitting statutory obligations including loan, and members’ deductions to Saccos and banks which are mandatory of any employer.
Ms Gathungu in the report submitted to the parliament said that KBC had also failed to remit other unspecified statutory deductions amounting to Sh464.6 million, cooperative liabilities of Sh28.3 million and Sh712.3 million to the Kenya Revenue Authority (KRA).
“…statement of financial position reflects trade and other payables balance of Sh2.6 billion…Included in the balances are statutory and other deductions of Sh2.2 billion,” Auditor General said.
Former workers have in the recent past petitioned KBC to pay them their outstanding benefits and in 2019, a section of their staff threatened to down tools because salaries were not being paid.
The move forced the Communication Workers Union (Cowu) to put the struggling broadcaster on notice for failing to release the payments.
Cowu General-Secretary Mr Benson Okwaro revealed that pensioners were the worst affected as KBC was unable to pay them Sh982 million in their dues for the previous year.
“Retirees have not been paid over the past year. Five saccos are owed about Sh50 million while various banks are demanding Sh10 million from the State broadcaster,” he said.
Okwaro also said that KBC did not remit statutory deductions KRA, The National Social Security Fund, co-operative unions, healthcare and insurance costs.
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