KENYA – Former executives of Mumias Sugar Company Wednesday issued a statement blaming the current financial woes troubling the country’s largest miller to inaction by the board of directors.
The team, which was sacked to pave the way for revival of the firm, also said it was never given a chance to defend itself over allegations contained in the audit done by KPMG.
The report says the executives, who worked in senior management positions during the terms of Dr Evans Kidero and Mr Peter Kebati as managing directors, blatantly disregarded warnings by internal and external auditors that the miller was exposed to potential loss of substantial revenue.
Instead, the report says, they created and exploited loopholes that exposed the listed miller to massive losses that nearly brought it under.
The sacked executives have now threatened to go to court to block implementation of the KPMG report, saying it is still in the draft form, a move which could scuttle the government-backed revival plan.
“We will either individually or collectively challenge such an action or any other attempt to refer the report in any proceedings,” reads the statement signed by former Commercial Director Paul Murgor.
CONDEMNED IN THE PUBLIC
“We have been condemned in the public court on allegations that have been kept a guarded secret by the board of Mumias Sugar Company. Had we been presented with the detailed allegations made by KPMG and given the opportunity to respond as it is normal in any audit process, nothing would have been further from the truth.”
The statement also represents opinions of other officials implicated in the report including former Finance Director Chris Chepkoit, former Company Secretary Emily Otieno and National Sales Manager Fredrick Nzioki.
Others are Mr Peter Hongo who was in charge of business development, Mr Michael Nyongesa, the former procurement manager, and Ms Christine Cherotich and Ms Everlyne Katatsa.
“We have come to learn from media reports that the board of Mumias has filed a suit against some of us to purportedly recover money held in an imaginary account operated by those who are allegedly sued. We wish to state that none of us, individually or collectively is aware of this imagined account and we demand that the board provides us with the fraudulent account,” the statement noted.
The former managers have threatened to take legal action against the company if it fails to provide proof of the existence of the said account and its connection to any of them.