The High Court has appointed Harveen Gadhoke as the new administrator of Mumias Sugar Company — the latest twist in the troubled efforts to revive the collapsed miller.
Justice Josephine Mong’are yon Monday picked the insolvency practitioner after the term of Kereto Marima, who was appointed in April last year by Justice Alfred Mabeya came to an end.
The appointment sends the miller and its shareholders back to the drawing board as the administrator has to start afresh the process of picking an investor and ways of repaying the debts that sank the firm.
Justice Mong’are made the appointment following an application by lawyer Jackline Kimeto, pointing out that the term of Mr Marima had expired.
“It has now become extremely necessary for the court to appoint a new administrator to secure the assets of the company and comply with the directions of this court issued on the 14th of April, 2022,” Ms Kimeto said in the application.
She argued that the assets of the once giant miller might be pilfered to the detriment of all creditors.
The judge also directed Inspector General of Police Japhet Koome to provide the administrator with armed security as he takes over the assets of Mumias company.
Mr Marima was appointed the new administrator by Justice Mabeya who terminated the contract of PVR Rao, over failure to comply with directives given by the court when he was handed the job.
“If Rao found it difficult to juggle the two hats he had been bestowed with, he should have moved back to court to seek direction. The court which appointed him to double as both the administrator and receiver manager was not short of wisdom on what should have been done,” he said.
Ms Kimeto had wanted the KCB-appointed receiver manager compelled to file a compressive report of all activities he had undertaken as an administrator since November 2021.
The lawyer also wants the court to order the duo to hand over all documents, including books of accounts, ledgers, leases, title deeds, and logbooks to the new administrator.
She also wants the new administrator to conduct an asset count of all Mumias Sugar Company’s properties and chattels and develop an asset register to be presented in court after the appointment.
Uganda-based Sarrai Group won a 20-year lease to run the company but it was cancelled by Justice Mabeya last year. The company has since challenged the decision and the matter is pending at the Court of Appeal.
The company says in the appeal that it had employed over 300 in a bid to kick-start operations and it was unfair to order the firm to cease operations as it would jeopardise the jobs and frustrate the efforts of farmers who are delivering cane and those who have been contracted to make the supplies.
The company’s sugar hit the shelves in December after going missing for over a decade.
