The Star (Nairobi)

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.

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