The management of troubled Mumias Sugar Company #ticker:MSC has refuted claims that it intends to sell some of the company’s assets in order to sustain its operations.
The miller's board chairman Kennedy Ngumbau clarified that some of the firm’s non-core assets including the golf course way, guest house, water bottling plant, sports ground, real estate and schools are set to be leased to boost the firm's revenues.
He dismissed claims by a section of politicians that they were selling off the company assets and other ventures in preparation to wind up the company.
"We don't have any intention to sell any asset of the company. It is not possible because Mumias is a company that is registered under the Capital Markets Authority and all assets are controlled by the lenders," said Mr Ngumbau, accusing politicians of feeding the public with misleading information.
Bungoma Senator Moses Wetangula had claimed that Mumias was planning to dispose of its assets including Booker Academy and its golf course.
"Our idea is to commercialise non-core assets, some which are operating without benefitting the company while others have remained idle for the last three years,” Mr Gumbau said in an interview yesterday.
“The golf course is underutilised and has become bushy. The company is paying workers at the guest house yet it's not operating. This adds up losses for the company. Those who will lease the ventures will act as agents for the management."
The chairman said the miller is planning to lease the assets through a competitive process.
The firm’s latest financial results show that the miller is technically insolvent to the tune of Sh6 billion, with its total assets as at June 30 last year standing at Sh15.7 billion against total liability of Sh21.6 billion.
The company reported a Sh15.1 billion loss in the year ending June 2018.