The High Court has ordered the immediate removal of Ramana Rao as the Mumias Sugar Company receiver manager. In his ruling, Justice Alfred Mabeya found and held that Rao had not acted according to the order of the court issued on November 19, 2021.
The judge further said that the receiver/cum administrator ought to have called a creditors meeting to ascertain the total amount of money owed by the company which he did not do.
The court found that he released the assets of the company to the lowest bidder, Sarrai holdings at Sh5.8billion and left out the highest bidder, West Kenya Sugar company limited that put a Sh36.7billion bid.
The court said that Rao was appointed by the Kenya Commercial Bank (KCB) and he appeared to serve the interest of the bank and not farmers or creditors. The court further said that he had not shown how he was going to pay the debt owed to farmers and creditors.
The court consequently appointed Matela Malima as the new receiver manager and the lease issued to Sarrai holdings was cancelled as it was ordered to move out of Mumias Sugar Company.
The New receiver manager was directed to compute all assets and debts owed by Mumias sugar company within a period of 60 days and file the same in court.