The directors of Mumias Sugar Company #ticker:KCB (MSC) have refused to hand over vital documents to the official receiver of the troubled miller, Parliament heard on Tuesday.
Mr Ponangipalli Venkata Ramana Rao, the receiver manager appointed by KCB #ticker:MSC on September 23 told MPs that the board has failed to hand over the miller’s statement of affairs.
“Until the directors provide information on the creditors, debtors, staff, assets and liabilities of Mumias Sugar Company, the receiver cannot do much,” Mr Rao told Senate’s Committee on Labour and Social Welfare on Tuesday.
KCB took over the operations of the struggling sugar miller after it failed to pay back the loan it owes the bank.
The lender is claiming Sh480.1 million, being part of a total of Sh2.6 billion that was provided by a consortium of lenders in 2017 including Ecobank and Commercial Bank of Africa.
The committee, chaired by Nairobi Senator Johnson Sakaja said it will summon Mumias directors and compel them to provide the statement of affairs of the company.
“We will have to ensure that the board of directors is compelled to present the state of affairs of this crucial company. We will summon them to appear before us. The Company Act provides a clear mechanism of what should happen in case a company is placed under receivership,” Mr Sakaja said.
Mr Rao told lawmakers that a meeting will be held this morning between the receiver, Mumias Company secretary and the Kakamega County government leadership to try and resolve the stalemate.
“Despite meeting the directors last week, I have not received the statement of affairs of the company,” Mr Rao said.