Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The company’s receiver manager PVR Rao has also invited the company’s debtors and creditors for engagement, a move he says will assist in understanding the extent of the miller’s financial problems.

Kenya

Board sacks senior Mumias managers over graft

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.

Advertisement. Scroll to continue reading.

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

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...