Live update: Senators discuss governors snubbing summons
Premium
Nairobi Hospital ex-CEO Allan Pamba wins Sh206m compensation for unlawful dismissal
Former Nairobi Hospital CEO Dr Allan Pamba during the interview at his home in Nairobi.
Former Nairobi Hospital CEO Dr Allan Pamba has been awarded Sh206 million by the Labour Relations Court for the unlawful termination of his contract four years ago.
The verdict read on Friday revealed the strained relationship that existed between Dr Pamba and the hospital Board over internal business deals.
However, he will wait before receiving the compensation after the court suspended execution of the verdict for 30 days to allow the hospital lodge an intended appeal.
Justice Nzioki wa Makau ruled that dismissal of Dr Pamba was based on malice and bad faith since the termination was founded on a disputed and irregular resolution of the Board of Management.
The judge said it was wrong for the Hospital to terminate Mr Pamba’s three-year contract six months after his appointment and immediately after the end of the probationary period.
The judge found that Dr Pamba was notified of the dismissal in a callous and offending manner as there was no termination notice or disciplinary process.
“His flourishing career seemed cut short abruptly and was distressed. He testified that he was jobless and could not obtain references from the Respondents and that it was only after a few years that he finally obtained employment,” said the judge.
Dr Pamba was hired in March 2020 at a monthly salary of Sh3 million until October 2 the same year when his contract was terminated on account of alleged unsatisfactory performance. This was after his appraisal by the Board of Management chairperson Dr Irungu Ndirangu.
The Nairobi Hospital.
Through a letter dated October 2, 2020, Dr Ndirangu informed Dr Pamba of the termination of his employment on account of a unanimous resolution by the Board of Management passed in a Special Meeting held on the same date.
However, two former board members – Robert Francis Shaw and Charles Wambugu testified in court that the issue of Dr Pamba’s performance or termination was not discussed in the said meeting. They noted that they learnt of the claimant's dismissal from the press.
The court heard that even if there was such a resolution the same was in violation of the hospital’s Board Charter.
The charter provides that “a special meeting of the Board or Board Committee will not discuss any matter other than that specified in the agenda”. Dr Pamba’s performance was not in the agenda item during the said meeting.
Court papers show that an extension of his probation had been recommended for a further three months ending December 2020, and he was to be placed on a performance enhancement plan.
He declined to execute the said plan and his extended probation, constraining the Hospital to terminate his contract.
'Hounded out'
Dr Pamba stated that he was hounded out because of vested interests by a board member, including granting tenders to a certain company.
He highlighted the milestones he achieved while at the Hospital, including adding a seven-bed facility.
Another achievement, he said, was negotiating with the United Nations for a $10 million (Sh1.29 billion) investment for expansion of the facility, though Dr Ndirangu denied this and claimed that the deal was negotiated by the board members.
Dr Ndirangu also denied the assertions made against him by the former CEO, including allegations of repeatedly coercing and threatening him to ensure that a tender for security system installations was awarded to a particular company.
He stated that the advice he gave Dr Pamba was only aimed at offering guidance and assistance, which the former CEO was free to disregard.
Dr Ndirangu further denied that he asked Dr Pamba to prequalify a particular law firm to the panel of the Hospital Advocates.
In the claim, Dr Pamba stated that the alleged unsatisfactory performance was aimed at painting him as a non-performer and to set the stage for his unlawful dismissal.
Though he scored above expectation in his first and second evaluations, the court heard that one board member scored him below expectation in all attributes in the third evaluation.
Dr Dorcas Kiai, the HR Director, testified that the process followed in the review of probation was flawed.
She said she had offered written guidance on the procedure of probation review but the same was ignored.
While ruling in Dr Pamba’s favour, the court found that had Dr Ndirangu followed the law in the extension of probation and if the hospital had lawfully terminated the claimant, there would have been no adverse finding against them.
“The Respondents almost decimated the claimant's ability to find employment and therefore are liable for the damages caused when the claimant was unlawfully terminated,” said Justice Makau.
The court awarded him Sh117 million as payment of salaries for the balance of the three-year contract, Sh11.7 million (leave dues) and one year salary compensation (Sh36 million).
He was also awarded Sh150,000 for telephone allowances, car allowance (Sh13.5 million), home security allowance (Sh3 million), medical cover (Sh15 million) and Sh10 million damages for defamation.
