Nzoia Sugar in the red
29 November 2013, 09:37
Nairobi - The Nzoia Sugar Company is battling financial problems and is insolvent to the tune of KES 16 billion, a Parliamentary House Committee has been told.
The sugar miller had liabilities of KES 21 billion, exceeding the factory’s current assets of KES 4 billion.
The ailing miller’s problems are worsened by the KES 10.4 billion debt that it owes the government and the Kenya Sugar Board (KSB) as at June 2012.
Auditor-general Edward Ouko said the sugar miller’s insolvency was a result of inept management and non-performing loans.
“We are not in a position to validate most of the expenditures and (other) figures due to the absence of relevant supporting documents that have not been submitted to us by the company,” he added during a hearing of the Parliamentary Investment Committee.
KSB Chairman Adan Keynan said the committee would present a report in Parliament that would recommend the government not to finance the company if it failed to avail copies of loan documents and other financial transactions in the coming one week.
“I do not think Kenyans are ready to fund useless investments, we will make recommendations that will see the government stop funding this entity,” said Keynan.
The company’s Managing Director, Saul Wasilwa admitted that the company’s financial position was in the red.
– CAJ News