New twist and turns in Mumias Sugar revival plan

Revival of Mumias Sugar to be delayed for a further 6 weeks

Mumias Sugar Company receiver-manager Ponangipalli Venkata Ramana Rao has filed an application in court seeking to scrutinize the KCB bank accounts of Mumias for the last two years.

Early November last year justice Alfred Mabeya directed the filling of the accounts following Rao ‘s appointment as the interim administrator of the company.

Based on the receivership accounts for June 29, 2020 and November I2 202I, the company received revenue of up to Ksh.I.4 billion.

According to a report by Business Daily, Lawyer Jackline Kimeto, who successfully applied for Rao to be appointed the interim administrator, says if it is true Rao has made the money then the amount is enough to pay off KCB’s debt.

She further claims that Ksh.76 million is the legal fee for the company, making her one of the creditors.

According to Ms. Kimeto, Rao should answer questions regarding professional and legal fees, that add up to millions of shillings over the management of the company.

These also include security costs that total up to Ksh.150 million, repairs and maintenance distillery and the factory.

Kimeto again wants the court to order a forensic audit for the miller’s accounts arguing that after his appointment Rao failed to effect the administration process in accordance with the insolvency act and also directions issued by the court.

Irene Kashindi who represents Rao has opposed the application terming the case as a medium of delaying efforts to revive the company.

Further she stated that Rao had completed the evaluation of bids in December and awarded the 20 -year lease to Sarrai Group emerged the winner and handed the company to the group.

Justice Mabeya had allowed Rao to proceed in leasing the miller but indicated that the manager will have to do it in accordance with the Competition Act and file regular updates to the court.

The application will be heard on March 7, 2022.

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