Mumias AGM turns chaotic as shareholders demand removal of entire board

Mumias Sugar Company Annual General Meeting (AGM) turned chaotic after shareholders protested against dividend drought for six years running.

They called for the disbandment of the board of directors accusing it of incompetence.

The shareholders made the call even as board chairman Dan Ameyo officially relinquished the post during the meeting held in Kisumu on Friday.

The farmers accused Mr Ameyo of leaving the company worse than he found it. The company owes the farmers Sh650 million and has a debt load of Sh11 billion.

Mr Ameyo said the company he inherited was heavily indebted, and the miller would only recover after paying debts.

“I don’t believe in staying in an organisation for long. I believe in leaving for others to move it forward,” he said.

But the shareholders accused him of having a hand in the near-collapse of the company which this year reported a net loss of Sh4.7 billion compared to Sh4.6 billion the previous year.

“Thank you Mr Ameyo for having the courage of stepping aside. You have added no value to the company. We want the whole board to step aside so that we can elect new leaders,” said Mr Francis Wangara, a shareholder.

“He has failed to pay farmers on time and even motivating them to grow new cane varieties. Why would we be having someone like that leading such a big organisation,” asked Mr Wangara.