Mumias, Kenya: A section of Mumias Sugar shareholders have welcomed the county government’s decision to secure the company’s assets.
They also want the troubled sugar firm placed under administration in a move aimed at giving the company a lifeline to recover by keeping creditors at bay like was in the case with loss-making ARM Cement that went the same route last year.
Mumias Sugar Company National Shareholders Forum chairman Muthuri Nyamu told a sugar task force appointed by governor Oparanya to oversee the revival of the ailing company that looking for an administrator would be an effective way of keeping creditors at bay and cushioning the Miller’s assets.
The shareholders urged both national and county government to engage creditors and debtors and develop a realistic revival strategy for the company.
"We can put it under administration just like ARM or Nakumatt so as to salvage its fortunes,” said Muthuri who urged governor Oparanya not to relent in his efforts to rescue the sugar firm from extinction.
Nyamu urged the Capital Markets Authority (CMA) to stop interfering with the Oparanya’s administration plans to help revamp the sugar firm.
“We were shocked when CMA issued a stern warning to the country government, where were they when Mumias sugar started sinking to its lowest ebb?” posed Nyamu.
He joined farmers in calling for a total overhaul of the firm’s board of management headed by Kenneth Ngumbao Mulwa in order to make it more inclusive and effective.
They also called on the Director of Criminal Investigations (DCI) boss George Kinoti to investigate and have those who swindled Mumias sugar company prosecuted.
“Individuals who squandered the Sh3.5billion bailout cash released by the state must be prosecuted and compelled to return the money,” argued Nyamu.
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