Mumias boss sent home over ‘investment deals’

The Mumias Sugar Company has suspended its CEO Nashon Aseka, exactly one year since he was appointed to head the cash-strapped miller.

The company’s head of Agriculture Patrick Chebosi replaces him in acting capacity.

The company’s board of directors yesterday confirmed the suspension of Mr Aseka, earlier touted as the right man to take over the firm’s turnaround plan.

“The reason for the suspension was that some doubtful transactions appear to have been entered into without following due process and requisite approvals,” read a letter dated June 5, and signed by the company’s board chairman Kennedy Ngumbau.

According to Mr Ngumbau, the suspension is meant to pave way for further investigations into the matter.

“The board found the CEO to have violated regulations, he (Aseka) engaged a certain foreign investor without approval,” said Mr Ngumbau.

In a quick rejoinder, Aseka said he was not aware of the decision by the board to suspend him since there was no official communication to that effect.

“I was communicated to verbally about it, but that really doesn’t make sense. It is not clear what I’m being accused of,” he told The Standard on the telephone yesterday.

The embattled CEO clarified that he engaged a foreign consultant to scout for an investor or financier who would inject money or advance a loan to the ailing sugar firm.

According to him, the company is grappling with a Sh13 billion debt owed to banks alone.

“The debt is much bigger than that and these loans continue to accrue huge interests. Besides, the company could be penalised for failing to clear the debts as per the agreement reached by the lenders,” said Aseka.

He said the plan was to bring the board into the picture once the consultant identified an investor, a research done and a proposal made to that effect.

“There was nothing I would have reported to the board since the said consultant is yet to get the financier,” he said.

In any case, Aseka argued, an investor would not have ploughed money into the sugar firm without the approval of stakeholders and the board.

He claimed a decision to suspend him was taken in bad faith.

“Someone in the board has been sending individuals to look for information particularly mistakes committed at the company in order to pin me down,” he said.

Aseka said the factory, which has since closed shop, requires billions of shillings to get back on track.

“We cannot quantify the exact amount of money required, but if we get little funding, there can be progress, that is why we need to get a financier.”

Sugar Company

According to him, even the National government has had challenges assisting the sugar company “and we cannot just sit and wait for assistance when we can reach out to financiers”.

Players in the sugar sub-sector have given varied reactions to news of Aseka’s ouster.

The Kenya National Federation of Sugarcane Farmers claimed that the national government could be behind Aseka’s woes.

The Kenya Union of Sugar Plantation and Allied Workers (Kuspaw) had earlier called for a management overhaul at Mumias Sugar Company.