How H.R. Strategic Partners Defrauded Bata Shoes Ksh 32 Million

Bata Shoe Kenya has gone to court to sue an employment agency seeking a refund of 32.5 million shillings that the footwear company says were obtained through fraud by way of cost inflation.

Bata procured the services of H.R Strategic Partners Ltd to hire employees on their behalf. During the billing, Bata claims the employment agency inflated the salaries of the employees and got 32.5 million shillings more.

In the agreement between Bata and the agency, the shoemaker was to pay a standard fee of 417,000 shillings per month, irrespective of the number of workers engaged at the company. The invoices were to be raised every two weeks and no payment was to be made until the labor costs had been approved.

Bata, however, says that an internal audit carried out in February 2019 revealed that it had overpaid 32.5 million shillings through exaggerated invoices. The company is now demanding a refund of the amount plus interest.

“The plaintiff further claims the right to trace the said sum of 32,595,981 shillings to the hands of the defendants, jointly and severally,” Bata says in the case filed at the High Court in Nairobi.

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This also means that the employment agency was charging Bata more and paying the employees less for the work rendered. It is not clear whether the employees procured during the period would also be moving to court seeking redress.

The shoemaker is accusing the recruitment agency of inflating the invoices for employees engaged, contrary to an agreement the companies entered. Further, the Limuru-based company accuses the agency of concealing the matter and failing to document the manpower supplied.

The news brings to the surface the rot in the private sector when it comes to corruption. Traditionally, corruption is only associated with the public sector.