The Kenya commercial bank has taken over operatiions of the cash strapped Mumias Sugar and placed it under receivership.
The lender announced today the appointment of Mr PVR Rao as the as the sugar company’s receiver manager, to keep the troubled sugar miller afloat.
“The Bank has appointed Mr. PVR Rao (Tact Consultancy Services) as the sugar company’s receiver manager,” KCB said in a statement.
Investigative agencies are reported to be investigating at least 20 individuals including top and middle-level managers, businessmen and influential persons believed to have fleeced the company through dubious transactions.
One of the names adversely mentioned in the report is that of a former manager, who is accused of purchasing the company shares using the miller’s proceeds.
The governor formed the task-force three months ago to look into what could have led to the near-collapse of the miller and how it could be brought back to its full potential.
The 13-member task-force, under the chairmanship of County Trade Executive Kassim Were, has also come up with a raft of recommendations for the miller’s revival.
As part of its revival plan, the report recommends that payment of Sh20 billion debt the company owes its creditors, including farmers, be done after two years when the miller will be back to its full crushing capacity.
Cane farmers are owed at least Sh700 million in cane deliveries, and its more than 1,500 workers with a monthly wage bill of Sh40 million have not been paid salaries since 2017.