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Kidero denies claims he ruined Mumias Sugar

Nairobi Governor Evans Kidero has denied allegations that he played a role in the near-collapse of Mumias Sugar Company when he was the managing director.

Dr Kidero said when he left Mumias in 2012, it had made cumulative profits of Sh14.8 billion, insisting that he left behind a most liquid and respected company.

He said when he joined the firm in 2003 it was on a loss-making path. It had made a loss of Sh245 million in 2002, he added.

“The people who have since been charged with running the company should answer questions on the woes betiding MSC,” said Dr Kidero in a statement.

FEIGN IGNORANCE

He went on: “With insignificant changes here and there, the board of directors remains the same as it was when I joined the company. It is deceitful for any one of these directors to feign ignorance on things they approved while I served under them.”

Dr Kidero blamed the increase in the chairman’s stipend to Sh450,000 a month and the MD’s salary to Sh2 million a month for the crisis facing the company.

“Board members collect an allowance of Sh45,000 per sitting each. They sit almost every day. It is not difficult to tell what ails MSC,” said Dr Kidero.

He said the accounts for each year were placed before the board of directors and approved.

PAY FARMERS

 

Dr Kidero said at no time did the company fail or delay in presenting the accounts.

“At no time did the board, the auditors or shareholders suggest that anything untoward was happening in the company,” he said.

Mumias has been unable to pay its farmers for the past one year, forcing the government to step in and provide funds.

Kakamega Senator Boni Khalwale has since called on Director of Public Prosecutions Keriako Tobiko and Ethics and Anti-Corruption Commission Chairman Mumo Matemu to take action on former managers of the firm.