Conservatory orders obtained by 3 former Mumias Sugar Company senior managers the court have impeded investigations in 56 out of 85 bank accounts under inquiry says the Capital markets Authority.
CMA says bringing to a halt the ongoing investigations into their bank Accounts, until their petitions questioning the legality of the warrants are heard and determined is hampering conclusion of the forensic audit.
The regulator says it is following up with various banks in order to receive bank statements of 29 accounts that are not subject to any court order. The forensic auditors have been reviewing the financial statements and governance operations at Mumias Sugar Company for the period between 2006 -2016.
According to CMA’s 2017 annual report, the regulator has decided to conduct the forensic probe last year during its 279th meeting.
“In its 279th meeting held on 28th April 2017, the Board approved reallocation of budget to market intervention and professional and consultancy votes respectively; from training & development, market development, Capital Markets Master-Plan and legal /litigation votes respectively, totaling to Ksh30million. This was to facilitate forensic audit/investigations of operations of past Management and Board of Mumias Sugar Company Ltd; conducted through the firm of M/S J. Miles Limited.”
The three former managers last year moved to court protesting against CMA’s investigations into their personal accounts terming it as violation of the law and therefore unlawful.
CMA boss Paul Muthaura had in July last year issued notices while alleging that between 2009 and 2012 Mr. Hongo and Mr. Murgor together with other senior managers provided excessive discounts through credit notes to select customers amounting to Sh3.1 billion.
Former M.D Evans Kidero had in the same month filed a petition that sought to investigate his personal bank accounts during the 10 years he served at Mumias. Kidero termed the action as unlawful and meant to influence the outcome of the elections.
Last year current MD Nashon Aseka revealed that Mumias Sugar Company needs more than Ksh 5.1 billion to resume full operations and his priority would be to ensure that farmers are well taken care, and to resolve cane poaching.