Mumias Board sends two top managers packing

By JAMES ANYANZWA

NAIROBI, KENYA: Mumias Sugar Company (MSC) Chief Executive Officer Peter Kebati and Commercial Director Paul Turgor have been suspended over allegations of irregularities in the company.

Chairman Dan Ameyo said the two have been asked to step aside to allow the board to investigate some doubtful transactions in the company. “They have been asked to step aside to give the board an opportunity to look at some doubtful transactions and to restore confidence in our stakeholders in the manner in which we conduct our business,” Ameyo told The Standard Tuesday.

However, as the investigations go on, Coutts Ottolo currently a board member and head of board audit committee will oversee the company operations.

STRENGTHEN LEADERSHIP

Pamela Lutt who is the firm’s marketing and communications director will step in as commercial director.

Mr Ameyo said the board is looking to strengthen the management of the company in the wake of many challenges the country’s largest miller is facing.

“We want fair and ethical leadership in the company,” he said adding that the decision to suspend the two top officials was meant to ensure doubtful transactions are eliminated. “We want integrity in the entire working of the company.”

He said the board wants all the stakeholders including shareholders and farmers to get a fair share of their wealth in the company.

“We must have a sustainable and profitable strategy, which will require that we review the way we do our business and assure the management, particularly the stakeholders of Mumias run the business on an ethical and good corporate governance principles,” said Ameyo.

TOP MANAGEMENT TEAM

Our efforts to obtain comments from Mr Kebati proved unsuccessful as our calls to his cell phone went answered. The company’s board of directors met last evening to make the changes in the top management team. This meeting also reviewed the miller’s performance.

This comes amid allegations made by the Parliamentary committee on agriculture that Mumias was selling more of its imported quota sugar than its locally manufactured products.

Figures indicate that most sugar millers have a stockpile, which they are unable to sell due to depressed prices in the local market. Mumias Sugar controls over 60 per cent of the sugar market but has over the last two years recorded a slowdown in profitability. Pressure is mounting on Mumias Sugar to come clean on why they are selling sugar from South Sudan on the local market.