Mumias Sugar factory. The miller wants details of the bank account
revealed so it can collect evidence to support its pursuit of the four
former executives for the loss. PHOTO | FILE
By BRIAN WASUNA, bwasuna@ke.nationmedia.com
In Summary
- Emily Otieno and Paul Murgor say they had no knowledge of the secret Dubai Bank account, which they say was opened as a result of the supply contract Mumias had with Dante’s Peak for the importation of 30,000 metric tonnes of sugar.
- Mumias has sued Mr Murgor, Ms Otieno, former chief executive Peter Kebati and former finance director Chris Chepkoit for allegedly opening the account and using it to profit from illicit deals with suppliers.
Two former Mumias Sugar Company
directors have denied involvement in the opening of a secret bank
account that the struggling miller says was used to plunder Sh1.1
billion through an illegal sugar import deal.
Emily Otieno (company secretary) and Paul Murgor
(commercial director) say they had no knowledge of the secret Dubai Bank
account, which they say was opened as a result of the supply contract
Mumias had with Dante’s Peak for the importation of 30,000 metric tonnes
of sugar.
“The opening of an escrow account with Dubai Bank
was a result of the contract entered into between Mumias Sugar and
Dante’s Peak, which provided for starting a joint account,” lawyers for
the former directors say in court papers.
Mumias has sued Mr Murgor, Ms Otieno, former chief
executive Peter Kebati and former finance director Chris Chepkoit for
allegedly opening the account and using it to profit from illicit deals
with suppliers.
Mr Chepkoit had in April denied instructing Dubai Bank to open the account.
The miller wants details of the bank account
revealed so it can collect evidence to support its pursuit of the four
former executives for the loss.
The former officials have, however, denied any
knowledge of the account, arguing that the supply contracts with Dante’s
Peak, a company associated with wheeler-dealer Benson Ndeta, were
approved by the board.
“I deny having knowledge that an account had been
opened and customers were depositing money into the said account. The
board refused to pass a resolution to endorse the opening of the
account. Mumias’ inability to access the account is a result of the
board’s refusal to pass the resolution,” the former directors said in
court papers.
Mr Kebati, Ms Otieno and Mr Murgor were sacked in June last year while Mr Chepkoit resigned a month later.
The former CEO is yet to respond to the suit, but has hired Nyaundi Tuiyott & Company Advocates to defend him.
Mumias claims that the four, in their well thought
out plan, first sought authorisation from the Treasury to import 115,000
bags of sugar citing a production shortfall caused by external factors.
They then allegedly presented the plan to the board
of directors and before getting approval, entered into talks with
Dante’s Peak to supply Mumias with 100,000 metric tonnes at prices above
the current market.
Mumias also says they convinced distributors to only buy the sugar from Dante’s Peak.
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