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Corporate

How Mumias Sugar bosses brought firm to its knees

Nairobi governor Evans Kidero. PHOTO | FILE
Nairobi governor Evans Kidero. PHOTO | FILE 

Dr Evans Kidero and his successor as Managing Director at Mumias Sugar, Mr Peter Kebati, ignored repeated calls by auditors and the company’s board of directors to seal gaping corruption loopholes, concludes a damning audit of the troubled miller.

A draft forensic report by audit and consulting firm KPMG blames management teams under the two former bosses of blatantly disregarding information from auditors that there existed massive abuses of procedure which needed fixing.

“We noted that Mumias Sugar Company’s internal auditors, external auditors and the board of directors consistently notified management of non-adherence to policy and procedure and gave recommendations, which should have been acted upon,” reads the report.

Non-compliance with policies and suggested changes, said the KPMG report, exposed Mumias to potential loss of substantial revenue.

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