10 June 2014

Kenya: Mumias Sacks Top Managers As Probe Continues

Mumias Sugar Company has sacked some of its top managers saying ongoing investigations have implicated them in a sugar importation scandal.

The chairman, Dan Ameyo said they reached the decision after receiving findings on the forensic audit on the sugar imports from audit firm, KPMG. He said the audit revealed that the management, which is headed by (suspended) chief executive officer Peter Kebati, started importing sugar via fraudulent deals during the end of year 2012.

"A series of transactions were set up by the management through identified business partners to facilitate the transaction and they were not in the best interest of Mumias," he said.

The board attributed the sackings to current state of affairs facing the sugar miller which include, sugar dumping, financial loss, and mismanagement saying "we recognize the company has faced challenges during the last two years leading to anxiety among our key stakeholders."

According to the chairman, the evidence in the KPMG's findings show that the management made misrepresentations on a number of key facts to the board and also acted contrary to the board's directives. "The managers carried out a series of transactions amounting to Sh1.1 billion without our approval and following the correct procedure," he said yesterday during a media briefing at Mumias office in Nairobi.

The chairman said they cannot name the individuals affected adding: "the investigation is still ongoing and we expect further findings during the next few weeks at which point the board will take further action as necessary." "Due to legal reasons, we will not name the affected employees now. But we will reveal the names after the investigation process is complete," he said.

Kebati and commercial director Paul Murgor. were suspended by the board in April on allegations of administrative irregularities and subjecting the sugar miller into financial losses.

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.