Standard Group woes have continued to raise concerns among Kenyans and political leaders across the country as many questions remain unanswered.
Speaking before the Senate on Wednesday, March 27, nominated Senator Gloria Orwoba asked the parliamentary committee on labor and social welfare to further investigate the matter.
Orwoba in her statement requested for reports to clear concerns about the financial constrains at the media house.
Subsequently, she asked the committee to answer four questions to ascertain that the employees were well taken care of.
“I rise to seek a statement from the committee on labor and social welfare on reports of delayed salaries on Standard Group Employees,” she said.
Also Read: Standard Group Clarifies Insolvency and Mass Retrenchment Reports
Questions Raised by Orwoba Over Standard Group
The nominated Senator asked the committee to ascertain the number of employees at the company, as well as to specify the number of workers under contract and those under permanent and pensionable terms.
Also, she asked that a report is submitted to confirm accuracy of claims that employees have not been paid for the last 10 months. The report, she added, ought to provide timelines for when the employees expect to receive their overdue salaries.
Additionally, she wants the report to detail measures that had been put in place to support employees affected by the salary delays.
“The committee should state the number of employees on contract and on permanent and pensionable terms at the Standard Group.
“Confirm accuracy of claims that employees have not been paid for the last 10 months, providing a timeline for when these employees can expect to receive their overdue salaries, stating measures if any in place to support employees who may be facing financial difficulties due to the delay,” her statement read in part.
At the same time, Orwoba asked the committee on labor and social welfare to determine whether there were plans to restructure the company and whether Standard Group had put in place plans to resolve the matter and build trust among its employees.
“State the basis for this delay and establish whether there are any plans to restructure the company, stating the measures being taken to protect the interest of the employees in line with the labor laws.
“Cause the company to provide regular updates on the progress made to resolve this issue and the steps taken to rebuild trust and moral among the employees,” Orwoba stated.
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Standard Clarification on Insolvency
The move came shortly after the media company was forced to issue a statement to clarify reports that it had declared insolvency and was laying off employees.
Standard indicated that the fake memo circulated online was a malicious attack which they remained unbowed to. Also, it indicated that its programs would continue as planned.
“We remain unbowed in our fight against the agents of misinformation, disinformation, and fake news. The Standard Group wishes to assure the public that our services on broadcast, print and digital platforms continue uninterrupted.
“Further, despite the hostile business environment facing the media industry, caused largely by the problem of pending bills and a slowdown in the overall economy, we continue to transform our business to best serve our customers,” their response read in part.
According to one of the company’s employees who spoke to The Kenya Times under a condition to remain anonymous, the Standard Group had resorted to rolling out a Voluntary Early Retirement (VER) arrangement in September 2023 to ease the pressure it was facing due to the pressure of meeting its operating costs.
In a statement released in 2023, Standard Group PLC expressed optimism about reversing the situation and attributed the financial challenges to outstanding payments for services provided to the government.
