Creditor seeks audit of Mumias Sugar accounts

A creditor has filed an application seeking to inspect Mumias Sugar Company’s financial accounts.

Lawyer Jackline Kimeto, whom the sugar miller owes Sh76 million, wants a forensic audit of the struggling firm’s accounts on claims that its receiver manager Pongangipalli Venkata Ramana Rao had failed to comply with provisions of the Insolvency Act.

“The 2nd respondent (Rao) has completely failed or refused to comply with the above provisions of the Insolvency Act in so far as his appointment is concerned and his conduct is detrimental to the administration process to the vested interests of the applicant and all stakeholders and continues to undermine the constitutional authority of this court,” she said.

The receivership accounts dated June 29, 2020, November 10, 2020 and November 12, 2021 show that the miller has received revenue of up to Sh1.4 billion.

Ms Kimeto said the amount was enough to settle a debt by KCB Group, which took over the miller’s assets in September 2019 to protect its assets and maintain operations. Mumias owed KCB Sh545 million.

The receiver manager opposed the application, saying, it will delay Mumias’s revival. The application will be heard on March 7.