June 6, 2018 / 9:19 AM / 9 months ago

Kenya's Mumias Sugar suspends CEO over 'doubtful transactions'

NAIROBI, June 6 (Reuters) - Kenya’s Mumias Sugar has suspended Chief Executive Officer Nashon Aseka over “doubtful transactions” that appear to have been entered without following proper procedures.

Mumias, which used to be the East African nation’s leading producer at more than 250,000 tonnes a year, has been beset by poor management and mounting losses in recent years.

The company’s board said Aseka’s suspension would pave way for further investigation. It did not say how long the suspension, which takes immediate effect, would last.

“Some doubtful transactions appear to have been entered into without following due process and requisite approvals,” the board said in a statement, without giving details of the transaction.

The board named Patrick Chebosi, its head of agriculture, as acting chief executive officer.

Aseka said the transactions that the board was questioning were within his mandate as the company’s CEO, without giving details.

Mumias Sugar’s output fell to 15,891 tonnes in the year ended last June from 75,073 tonnes a year earlier, and the miller attributed this to cane shortage and a shutdown of its plant for maintenance.

It reported an annual pretax loss of 9.53 billion shillings ($94.45 million) versus a loss of 6.07 billion a year earlier.

$1 = 100.9000 Kenyan shillings Reporting by George Obulutsa; editing by Duncan Miriri and Jason Neely

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