Mumias Sugar puts top staff on notice over illegal imports
Mumias Sugar’s sales plunged by nearly a quarter to Sh11.9 billion in 2013 compared to Sh15.5 billion a year earlier. Photo/FILE
What you need to know:
The employees are accused of importing cheap sugar and re-packaging it in Mumias Sugar bags before releasing it for sale in the market.
The illegal imports are thought to have cost Mumias at least Sh1.1 billion in lost sales.
Mumias Sugar’s sales plunged by nearly a quarter to Sh11.9 billion in 2013 compared to Sh15.5 billion a year earlier.
Kenya’s largest sugar miller Mumias has put more senior employees on notice after sacking the company secretary, Emily Otieno, for allegedly aiding illegal imports.
Ms Otieno was sent packing on Friday bringing to two the number of senior staff of the sugar company that have been sacked in connection with the malpractice, including former chief executive Peter Kebati.
“Emily Otieno was sacked on Friday after she was implicated in the illegal sugar imports,” said Mumias Sugar marketing and communications director Margret Makhungu in an interview yesterday with the Business Daily.
The employees are accused of importing cheap sugar and re-packaging it in Mumias Sugar bags before releasing it for sale in the market.
The illegal imports are thought to have cost Mumias at least Sh1.1 billion in lost sales.
“The sackings were based on recommendations of audit firm KPMG’s report which had been contracted to conduct the investigations,” added Ms Makhungu.
“We expect more sacking in the coming days as the company plans restructuring the whole management team.”
The report also accuses the sacked officials for acting contrary to the board’s directive and without its approval not following due process.
The KPMG report also accused the two senior managers of supporting shipment of cheap sugar from Sudan.
Sources at the company said the commercial director Paul Murgor who had earlier been suspended alongside Mr Kebati had been pardoned pending further investigations.
Mumias Sugar acting chief executive Coutts Otolo could not be reached for comment as his phone went unanswered.
Mumias Sugar chairman Dan Ameyo did not also respond to our queries.
Earlier, he had said the sackings of Mr Kebati and Mr Murgor would help streamline the company’s management and restore its reputation.
Mr Murgor and Mr Kebati had earlier been suspended for two months pending investigations into their conduct. Mr Kebati has so far refuted claims of his involvement in illegal imports.
Mumias Sugar’s sales plunged by nearly a quarter to Sh11.9 billion in 2013 compared to Sh15.5 billion a year earlier.
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