Former Mumias Sugar Company directors are allegedly frustrating the takeover plan.
The new management claims this has blocked compensation for sacked employees.
Company receiver manager Ponangipalli Romana Rao said the outgoing directors are yet to formally hand over crucial records. They include a statement of affairs of the company that should facilitate compensation for 400 sacked employees.
Without the statements – Rao said – he could not ascertain who the genuine employees are, how much were they paid and the assets and liabilities of the struggling miller.
Rao told the Senate Labour committee chaired by Nairobi Senator Johnson Sakaja that his hands are tied.
The company last month sacked all its employees after the firm went into receivership under Kenya Commercial Bank.
Rao said they are currently engaging new staff on contract to keep the company running and that priority is given to the former employees.
At the moment, the new management team has proposed a Sh20,000 preferential payment to KCB for funding which it hoped will be finalised by end of this month.
To further cushion sacked workers from harsh economic times, the receiver said none of the affected employees will be evacuated from the company’s houses until the compensation issue is resolved.
“The receiver’s intention is to revive the company and if this is achieved, it means the employees will have their jobs back and arrangements will be made to ensure that all the outstanding dues are paid from the available surplus funds,” he saidd.
Rao was before the Senate team to explain the dismissal of workers at the once giant sugar mill.
The statement was sought by nominated Senator Getrude Musuruve. Sakaja said the committee will next week invite former directors, the county government of Kakamega and the workers union to explain the stand-off.
The senators also heard that the company will today meet the governor, former directors and company secretary to try to unlock the stalemate.
According to Rao, should the Wednesday’s meeting fail, then they will be forced to go to court to compel the ex-directors to handover the company’s documents.
