BY SAM ALFAN.
A Mumias Sugar Company creditor has moved to court seeking the appointment of an administrator to manage the collapsed miller.
Lawyer Jackline Kimeto, who is pursuing millions for the once giant miller wants the court to appoint a new administrator after the term of the current one- Kereto Marima- came to an end.
In the petition to be heard on Friday, Kimeto also wants Ponangipalli Venkata Ramana Rao and Marima to file a comprehensive Report of all activities they have undertaken November, 2021.
She also wants Rao to file a comprehensive statement of financial accounts of all receipts and expenditures incurred by himself either directly or through Mumias Sugar 2021 Limited or all of its agents, employees, servants, subsidiaries or affiliates from the time they took over the assets of the Receivership Administrator to date.
“Unless this Court urgently intervenes and appoints an administrator and issues appropriate orders to enable the administrator carry out his statutory duties, Mumias’ assets will be pilfered to the complete detriment of all of Mumias’ creditors, including the Petitioner and there will never be any recovery of any of Mumias” debts since Sarrai Group Limited is operating within Mumias as though they now own the assets,” says the Kimeto in the petition.
She says Marima should immediately handover the affairs of Mumias Sugar Company including all books of accounts, documents, ledgers, leases, title deeds, log books and any other document or material to the new administrator.
The lawyer wants an order issued directed at the administrator to conduct an asset count of all the assets, property and chattels of Mumias Sugar Company and develop an asset register to be shared with the court and the creditors, within two months of appointment.
She said twelve months have now elapsed since Marima’s appointment on the 14th of April, 2022 and he has now automatically ceased acting as the court appointed administrator.
The lawyer said there is a huge gap in the interim administration process as there is no administrator currently in place to act on behalf of creditors.
“Due to this gap, KCB and Rao have colluded with Sarrai Group, west Kenya Sugar company, Kereto Marima and Mumias company to enter into transactions intended to defraud the body of creditors contrary to the provisions of Section 499, 500, 501, 502, 503 and 682 of the Insolvency Act No. 18 of 2015 and Sections 50, 51 and 52 of the Land Registration Act No. 3 of 2012,” adds Kimeto.
The said fraudulent transactions have since been set aside by various orders of the court and those found to be disobeying the orders of this Honorable Court have been found in contempt of the court and ordered to purge their contempt.
“It has now become extremely necessary for the court to appoint a new administrator to secure the assets of the company and comply with the directions of this court issued on the 14th of April, 2022,” adds the law firm.
