• The company owes contracted farmers Sh169 million.
• A firm paid Sh916,001but it never reflected in Nzoia Sugar’s bank account.
Image: FILE
The Directorate of Criminal Investigations is investigating a syndicate that caused a Western sugar company to lose sugar to an unknown businessman.
Reports indicate that the firm delivered 228 50kg bags of sugar to an unknown trader who never paid.
A firm paid Sh916,001 but it never reflected in the sugar company’s bank account. But inside information indicates that the deal might be an inside job implicating the top management with claims that it is not the first consignment to get lost.
Bungoma South DCI Yusuf Nzioka confirmed the incident, saying they were investigating top managers and staff at a bank in Nairobi suspected to be behind the syndicate.
“We are following up how the payment that was made in cash into the account of the firm reflected in the company accounts and later couldn’t be traced after claims of a bouncing cheque,” Nzioka said.
Farmers’ leader Jack Munialo told the Star that the syndicate involves the managing director and top managers at the finance and marketing department of the company.
“The MD is the sole person that carries all passwords which allow sugar out and payment to be made. How comes he allowed the sugar to be released with a fictitious payment? He should come clean on the matter,” Munialo said.
He said farmers and employees are yet to be paid huge arrears even as the bags of sugar disappeared.
“I want the top management at the firm to be investigated for selling sugar and pretending that it got lost, the cartel should be crushed, contracted farmers are suffering while employees are yet to receive their salary, how would a big company sell sugar in such a careless manner?” he asked.
The company owes contracted farmers Sh169 million.
Police are also pursuing some bank officials and a Nairobi businessman who allegedly colluded to con the firm.
However, the firm’s MD said there are issues being handled and those culpable will be dealt with accordingly.
“The issue is in the public domain, the DCI is investigating it. As the MD, I am responsible for anything taking place in the company and those responsible are also human beings. Investigations will reveal everything, so let’s maintain calm during the process,” he said.
Edited by R.Wamochie