Ex-Tata Chemicals employees demand action on delayed reserve funds allocation

Former employees of Tata Chemicals are expressing frustration over what they allege is a deliberate delay in the allocation of their reserve funds by the Board of Trustees.

Over 300 ex-employees, who left the company through retirement, retrenchment, and termination, have been following up on the allocation of Ksh 209 million since November last year, writing letters to the Fund Secretary in an attempt to prompt the board’s approval without success.

When their requests went unanswered, the former employees sought assistance from the Retirement Benefits Authority (RBA).

In May 2024, the RBA conducted a joint on-site audit inspection of the fund’s accounts and administration.

The audit revealed an unexplained reserve fund of KSh 209 million hidden within the fund’s records.

Following the audit, the RBA ordered the Trustees to prepare a distribution list of the reserve funds for all members by July 2024, but this directive was reportedly ignored during the Fund’s Annual General Meeting in July, where the proposed list was not approved.

One member voiced their frustration: “Despite our persistent follow-ups and RBA’s orders, the Board of Trustees has requested excessive timelines to address the allocation, showing a lack of urgency that we cannot understand.”

They expressed concerns that the current Board of Trustees, capable of reviewing and approving the fund administrator’s documentation quickly, is instead delaying due to personal interests.

The former employees are increasingly wary of possible foul play after learning that the Board of Trustees is planning to switch the fund’s administration from Zamara to Enwealth Fund Administrators.

“The timing and intent behind this change seem suspect and may be an attempt to obscure critical documents during the transition,” another beneficiary commented.

During a member education meeting held in Magadi, Trust Chairman Wilson Lusalenge did not provide a clear timeline for when the former employees would access their share of the reserve funds.

The post Ex-Tata Chemicals employees demand action on delayed reserve funds allocation first appeared on KBC.

The post Ex-Tata Chemicals employees demand action on delayed reserve funds allocation appeared first on KBC.