Mumias Sugar managing director Peter Kebati was suspended to pave way for investigations into claims of dumping of cheap imports. FILE
What you need to know:
KPMG’s brief is to unearth claims of a syndicate involving executives of the miller who have been discreetly importing sugar into Kenya which they pack and sell as Mumias sugar.
The allegations of corporate sabotage came after Mumias’ sales plunged by nearly a quarter.
Sugar miller Mumias has appointed consulting firm KPMG to carry out a forensic audit into allegations of illegal sugar imports by its top managers, which led to the suspension of chief executive Peter Kebati and commercial director Paul Murgor in March.
KPMG’s brief is to unearth claims of a syndicate involving executives of the miller who have been discreetly importing sugar into Kenya which they pack and sell as Mumias sugar.
Mr Kebati was sent on a two-month compulsory leave on March 30 by the Mumias board to pave the way for investigations into accusations of abetting shipment of cheap sugar from Sudan, which was later re-sold under the listed firm’s packaging.
“KPMG have already started the audit. The report will be out by the end of next month,” said a source at Mumias Sugar who sought anonymity, terming the matter as sensitive.
Mumias Sugar’s auditors are Deloitte & Touche. The allegations of corporate sabotage came after Mumias’ sales plunged by nearly a quarter to Sh11.9 billion in 2013 compared to Sh15.5 billion a year earlier, in what was linked to cheap sugar imports.
The firm made a full-year loss of Sh1.67 billion, with Mr Kebati blaming an influx of cheap imported sugar for hurting the company’s performance. It reported a loss of Sh73.4 million in the six months to December 2013.
