BY SAM ALFAN.
A law firm has moved to the High Court seeking the removal of KCB appointed receiver manager PVR Rao saying he has demonstrated lack of competence in undertaking the leasing of Mumias Sugar Company.
Kimeto & associate advocate wants the high court to order a fresh tender to be published and undertaken by the official receiver in consultation with the creditors committee appointed by the court.
Other than seeking the revocation of Ponangipalli Venkata Rao as Mumias Sugar company administrator, the law firm wants a forensic audit of the accounts since June 2020 and January this year.
The firm wants the revocation of the administrator’s appointment saying he has failed to convene a creditors meeting as directed by the court as well as discuss the leasing process, which has since stalled because of court cases.
The firm argues that since Rao was appointed, he has failed or refused to operationalize the administration process in accordance with the Act and direction of the court.
According to the law firm, the proposed leasing of Mumias Sugar Company has altogether collapsed with Rao currently engaged in vicious legal suits all over the country with disgruntled bidders who responded to the call for leasing of the company by the qualified investors.
“By his conduct, the administrator has demonstrated a complete lack of integrity and competence in undertaking the leasing process, a serious conflict of interests and a complete lack of fidelity in adhering to mandatory provisions of the law in his dealings with creditors (both secured and unsecured) and all 3 parties that have contracted with 3 respondent company thereby leading to multiple legal suits that have been filed all over the country and in various courts thereby turning the insolvency process into a complete and unending circus,” added the law firm.
The company further adds that the administration process is statutory bound and any delays in the commencement of the process is detrimental to the interests of all stakeholders concerned who have altogether lost confidence in the Rao ability to undertake the task required as administrator of Mumias Sugar company.
The firm through Jackline Kimeto says Rao has completely failed or refused to comply with provisions of the insolvency Act in so far as his appointment as administrator is concerned and his conduct is detrimental to all stakeholders and continues to undermine the constitution authority of the court.
