Mumias Sugar sacks suspended executives
11 June 2014, 15:03
Nairobi - Mumias Sugar has sacked two top managers who were suspended in April while the firm investigated the company's sugar sales and distribution, the company said.
Chairman Dan Ameyo told Reuters in April that Managing Director Peter Kebati and Commercial Director Paul Murgor had been suspended pending the investigations into what he called "questionable sugar sale and importation transactions".
Mumias said the board was presented with an audit by KPMG, which investigated the issue. A statement, issued by Ameyo on Monday, said the probe "indicates that management made misrepresentations on a number of key facts to the board."
"The board after careful consideration of the nature and extent of the involvement of members of the management and the impact it has had on the company, both from a financial and a reputation point of view, has ... decided to terminate the services of the employees involved," the statement said.
The statement did not mention the executives by name.
Mumias officials could not immediately be reached for further comment. The managing director and commercial director could also not be contacted.
East Africa's biggest economy has an annual sugar deficit of around 200,000 tonnes, which is usually filled by imports from other producers in the region.
Mumias has posted losses in recent years and has cited the cheaper imports that make its sugar uncompetitive.
The country's biggest grower and miller of sugar narrowed its pretax loss to 104.8 million shillings ($1.22 million) for the six months to December 2013, from 1.58 billion shillings in the same period of 2012.