- Rao had been appointed as administrator of Mumias for a period of 12 months but the appointment was terminated on grounds of gross incompetence.
- The High Court subsequently appointed one Kereto Marima to be the administrator of the sugar company for a period of 12 months.
Image: FILE
A Mumias Sugar Company creditor has filed an application before the Milimani commercial court seeking the appointment of a new administrator to run and manage the affairs of the troubled miller.
Kimeto and Associates Advocates claims that since the lapse of the former administrator, Kenya Commercial Bank limited and Ponangipalli Venkata Ramana Rao have colluded with Sarrai Group limited to enter into transactions with the intention of defrauding the body of creditors contrary to the Insolvency Act.
The firm, represented by Jackeline Kimeto, is seeking Sh80 million from Mumias Sugar Company.
Rao had been appointed as administrator of Mumias for a period of 12 months but the appointment was terminated on grounds of gross incompetence.
The High Court subsequently appointed one Kereto Marima to be the administrator of the sugar company for a period of 12 months.
He was also directed to secure the assets of Mumias, to convene a meeting of creditors, undertake a proof of debt of Mumias and file a report with the court within 60 days from the date of the ruling.
The 12 months have now lapsed since Marima's appointment and he has now automatically ceased acting as the court appointed administrator.
"There now exists a huge gap in the interim administration process as there is no administrator currently in place to act on behalf of the court and the body of creditors of Mumias," Kimeto said.
"It is extremely necessary for the court to appoint a new administrator to secure the assets of the company and comply with the directions of the court issued on April 14 last year."
Once appointed, they want the court to direct the Inspector General of Police, the county police commander of Kakamega county and the Officer Commanding Police Station Mumias to provide armed escort and security.
Also sought is an order directed to Rao and Kereto to immediately file a full, accurate and comprehensive report of all activities they have undertaken as court appointed administrators of Mumias since 19 November 19, 2021 to the court, creditors and to the administrator appointed for purposes of handover of the affairs of Mumias company.
The application will be heard on Friday. There are no responses from the parties mentioned yet.