Nairobi Business Tycoon Jacob Juma who has filed a suit seeking orders to stop Nairobi governor Evans Kidero from ever holding any Public office and to be charged for Insider Trading and Fraud in relation to the role he played in the collapse of Mumias Sugar Company, where he allegedly received over Ksh 650 million shillings when he served as the Managing Director of the Sugar Miller on Wensday 5 August 2015.
BY SAM ALFAN.
Dying Mumias returns to haunt Kidero after Nairobi Business Tycoon moved to court seeking the arrest and prosecution of the Nairiobi County Governor Evans Kidero over the alleged theft of Shs 650,000,000 and Shs 900,000 being the property of Mumias Sugar Company Limited.
“Dr Kidero is charged for engaging in fraudulent and scandalous financial accounting of Mumias Sugar Company” Says Juma in his court documents.
The Billionaire Jacob Juma is also seeking orders to freeze bank of accounts of Governor Evans Kidero over the alleged Sh 650 million he stole from the Sugar Company limited.
The businessman is seeking orders to stop Nairobi governor Evans Kidero from ever holding any Public office and to be charged for Insider Trading and Fraud in relation to the role he played in the collapse of Mumias Sugar Company, where he allegedly received over Ksh 650 million shillings when he served as the Managing Director of the Sugar Miller.
He further wants a comprehensive financial audit be done on Mumias Sugar Company during the period of 2003-2012 when the Dr Kidero was the managing Director of the sugar.
The said amount was received on behalf of the company but the same but was never deposited at the company’s bank accounts, he claims.
In an urgent petition to the high court, the businessman, says the petition should be referred to the Chief Justice Dr Willy Mutunga to empanel a bench of even numbers to the hear and determine the petition.
Juma says that if the money is not secured by order of the court the petition will be lender ed nugatory and the court will not able to make a determined decision to safe farmers money.
“Mumias Sugar Company has been grounded to halt due bad transactions which occurred during the tenure of Kidero at the sugar company “he says.
The petitioner further says there are many transaction and agreement Kidero signed which did not benefit the poor farmers from Western Kenya.
He says that the court should make a finding that the money should be charged interest at the rate of 14 per cent from year 2012 to 2015.
He says Kidero being the Managing Director of Mumias Sugar Company for the year 2003 to 2012 was personally liable for the down fall of Mumias Sugar Company as he did not properly advice the Board of Directors in regard to matters that would negatively affect the company.
He says Kidero conspired to commit securities and fraud by allegedly approving fraudulent quarterly and annual reports submitted to the Public, Nairobi Stock Exchange the Capital Market Authority and shareholders.
“He gave false statements and signed letters to auditors that were misleading about the veracity of Mumias Sugar Company quarterly financial statements from the year 2003 to the year 2012,”
This issues he says have resulted to the downfall of Mumias Sugar Company to near bankruptcy which have been perpetuated by the indirect or direct knowledge of Kidero.
He says Mumias Sugar Company has ground to a halt and is facing eminent collapse and the government’s efforts are proving inadequate so there is need for every effort to be made that can contribute to the saving of the Company.
“It has been disclosed that Kidero received Shs 650 million on behalf of MSC that he never deposited, there is a likelihood that he will hide the money and therefore it is important that his accounts be frozen to the tune of that amount,”
“The Sh 650 million together with interest totaling to Shs 923 million which I believe Kidero stole is virtually equivalent to Shs 1 billion that the government of Kenya recently granted to MSC which is sufficient as the company requires Shs 12 billion to operate efficiently,” claims Juma.
It is alleged that Kidero received Shs 650 million in cash on behalf of MSC as envisaged in a sales agreement between Mumias Sugar and YH Wholesalers for the sale of 13,450 metric tons of sugar. The said money was never deposited in the Company account nor an account of the said amount given by Kidero.
Kidero prior to his position as the Governor was the MD of Mumias Sugar Company from the year 2003 to 2012.
Juma says Kidero was personally liable for the downfall of Mumias Sugar Company as he did not properly advise the Board of Directors in regard to the matters that would negatively affect the company.
According to the court documents, the financial records for the year 2013 confirms that hardly 12 months after the applicant had left MSC, it registered a below target cane material supply and resorted to harvesting relatively younger cane.
This he says is a situation that squarely puts the blame on Kidero as cane takes 18 to 20 months to mature.
“The shortage in cane supply and harvesting younger cane in a period of 12 months after Kidero lefts Mumias Sugar clearly shows that Kidero failed to plan well for cane raw material supply and the risk management policies associated with raw material supply,” Says the tycoon.
He says between 2005 to 2008, Kidero presented annual Mumias sugar company financial statements to the Directors and Shareholders with the full knowledge that the said financial statements were wrong and contained false income, false material, accounting errors, false notes and information resulting in the declaration of incorrect overstated dividends, distribution of non-existence profits and completely depleting the working capital of Mumias Sugar Company which contributed to the financial crisis.
He says the audited financial statements in the period 2005-2012 had material errors that were brought to the attention of Kidero.
The audited and published financial statements were therefore signed by the Directors on the recommendation of Kidero as the MD of MSC with the full knowledge that the same were erroneous, fraudulent and therefore did not show the true financial status of the company as shown.
The petition will be placed before vacation judge for orders and directions.