Board sacks senior Mumias managers over graft

June 9, 2014

, MUMIAS-SUGAR-PLANTNAIROBI, Kenya, Jun 9 – Listed miller Mumias Sugar Company’s board has sacked senior managers involved in alleged corrupt deals during the company’s sugar importation in 2012 among other cases.

Making the announcement on Monday, Board Chairman Dan Ameyo however declined to name the sacked employees for what he termed “legal reasons.”

“The board after careful consideration of the nature and extent of involvement of members of management and the impact it has had on the company both from a financial and a reputational point of view, has this morning decided to terminate the service of the employees involved,” Ameyo told journalists.

Managing Director Peter Kebati and Commercial Director Paul Turgor are among managers who had been suspended on April 2 this year.

Their suspensions came after doubtful transactions in sugar importation process totalling to Sh1.1billion according to a forensic audit by audit, tax and advisory services firm KPMG.

Apart from the sugar importation, KPMG was also to investigate procurement issues and distribution of the company’s products.

“KPMG’s findings are that the transaction was not in the best interest of Mumias. Evidence indicates that management made misrepresentations on a number of key facts to the board. Management also acted contrary to the board’s directives and without its approval,” the chairman said.

The board says Coutts Otolo who was appointed as the acting Managing Director will remain in the same position until all the issues are resolved.

According to the chairman, the company has over the last two years faced financial challenges leading to uncertainty and anxiety among some of the key stakeholders of the leading sugar miller.

“I would like to assure all our stakeholders that we as a board remain committed to effect necessary changes,” Ameyo said.

He says the full report will be released before the end of this week.


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