Mumias board suspends CEO over doubtful transactions
The board of troubled sugar miller Mumias has suspended chief executive officer Nashon Aseka as it begins a probe into questionable deals entered by the firm.
The suspension casts a light on the sugar company that has over the years suffered from a spate of poor management that has affected its operations.
Mumias chairman Kennedy Ngumbau said the suspension would pave way for further investigations, but did not go into the specifics of the questioned deals.
“The reason for the suspension was that some doubtful transactions appear to have been entered into without following due process and requisite approvals,” Mr Ngumbau said in a statement.
The board did not however give a timeline for the suspension.
Mumias head of agriculture Patrick Chebosi has in the meantime been appointed as acting CEO.
Mumias, which was once the country’s largest sugar producer has been weighed down by poor management and widening losses in recent years.
Ravaged by acute cane shortage and outdated machinery, Mumias has seen its sugar production drop from 75,073 tons to 15,891 tons underlining its run of poor performance.
The sugar miller reported a 2017 pretax loss of Sh9.53 billion up from a Sh6.07 billion loss a year earlier.
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