The Board of Mumias Sugar has suspended CEO Nashon Aseka to allow for investigations over suspicious transactions that took place.
The company’s chairman Kennedy Ngumbau said the chief executive’s suspension will enable the probing of the questionable deals as the CEO failed to provide adquate details on the same.
“The reason for the suspension was that some doubtful transactions appear to have been entered into without following due process and requisite approvals,” he said in a statement.
Patrick Chebosi, the head of Agriculture at Mumias, has taken Aseka’s place as acting CEO.
Difficult Times
The CEO’s suspension, whose duration is unclear, puts the company under the spotlight thanks to poor management issues experienced in the past which have affected its operations. In addition, the firm has been facing financial problems this year which have resulted in unpaid farmers, decline in sugar production, and the loss of half of its cane suppliers.
The company’s sugar production has declined from 75,073 tons to 15,891 tons while the company posted a pre-tax loss of Sh9.53 billion compared to Sh6.07 billion in 2016.
Share Price
The company’s share price on Wednesday set a new record after hitting Sh 0.70 at the Nairobi Securities Exchange.
