Uchumi Supermarket has denied former CEO Jonathan Ciano’s claims that he was unlawfully dismissed.
The retailer said that Ciano, who has sought compensation for wrongful dismissal, voluntarily resigned on June 13, 2015 vide a letter.
“There is no proper claim before the Employment and Labour Relations Court, in which the board of the directors are being asked to compensate him,” Uchumi lawyer Patrick Lutta said.
In reply to a memorandum of claim, the lawyer says that the former CEO was negligent and breached his employment contract.
Lutta says that Ciano neglected to immediately disclose in writing to the board all interests he had in any ventures, contracts or arrangements which were in conflict with the performance of his duties.
He argues that the board was not informed by the CEO in the Rights Issue information or memorandum published in November 2014 that the sale and lease-back agreement had been signed by him including two transactions of approximately Sh49 million.
Lutta contends in the affidavit, that at the hearing of the claim, he will provide evidence to prove that Ciano breached his contract and performed poorly causing the company huge losses.
He states that some time in February 2016, Ciano was compelled to resign as the chairperson of the Institute of Certified Public Accountants Kenya disciplinary committee.
“Ciano further resigned as a director of British American Tobacco Kenya Limited (BAT), a clear indication of his dismal performance and lack of leadership capabilities.”
The company avers that while Ciano was entitled to Sh4,608,323 as his terminal dues, he could not be paid due to the issues of negligence that arose upon his resignation.
When the parties appeared for hearing before Justice Stephen Radido, Lutta informed the judge that the company had received a forensic report which he needed to file together with witness statements.
The court directed that the same be filed and swerved upon the claimant before February 9, 2018 and the matter be mentioned before the deputy registrar on February 16, 2018 for purposes taking a hearing date.
The board of Uchumi Supermarkets sacked Ciano over gross misconduct and negligence two years ago after he retailer began experiencing operational challenges.
