Former State agency CEO ordered to repay car loan

When former National Housing Corporation managing director James Abok Odera moved to court over 10 years ago, accusing the agency of sacking him illegally, he hoped to get several millions in compensation.

Instead, the Employment and Labour Relations Court has dismissed his case and ordered him to pay the corporation Sh437,360 for a car loan advanced to him, but which he never cleared.

Mr Abok was appointed the managing director of NHC for a term of three years on June 18, 2003. In February 2006, he applied for the renewal of his contract but two months later, PS Ministry of Housing sent him on leave, pending investigations on allegations concerning the irregular allocation of houses at Pumwani housing scheme.

The report was ready in May, 200,6 and Mr Abok was asked to respond to the allegations. But before he could respond, his contract had expired.

It was then that he moved to court accusing NHC of breach of his contract and sought Sh3,364,600 for unpaid salaries and gratuity. He also sought to stop the employer from repossessing his motor vehicle.

The corporation defended itself saying his contract lapsed before any action could be taken against him, arising from the investigations.

But NHC said it had advanced him a car loan of Sh2,120,000, which was to be repaid with interest over a period of 72 calendar months (six years), from October 2005.

“The court finds and declares that the claimant’s contract expired by effluxion of time and not through unfair termination of the contract. The court also finds that the claimant failed to prove breach of contract in respect to gratuity, health cover and provident fund,” Justice Stephen Radido ruled.