Nairobi Governor Evans Kidero. He has denied pocketing Sh650 million paid to Mumias Sugar Company by a trader when he served as managing director. payment of Sh1.145 billion being the value of the 13,450 metric tons of sugar.
Nairobi Governor Evans Kidero. He has denied pocketing Sh650 million paid to Mumias Sugar Company by a trader when he served as managing director. payment of Sh1.145 billion being the value of the 13,450 metric tons of sugar.
“The payment has been received in the form of cash Sh650million and cheques (of) Sh495million.
It goes further: “The buyer agrees to buy a 50kg of sugar at a discounted price of 10 per cent of the ruling MSC pricelist on the day of delivery.”
The YH Wholesaler paid the money to Mumias Sugar Company through its KCB Bank account in Nairobi on April 13 and 16.
The transfer of the cash was from Diamond Trust Bank in Nairobi to KCB Bank in Nairobi and KCB confirmed receiving the money.
The depositing of the cheques was done at Equatorial Commercial Bank to KCB Bank.
ATTACHED RECEIPTS
Dr Kidero attached the payment receipts to confirm that Mumias Sugar Company received the money.
On Wednesday morning businessman Jacob Juma filed an application in court seeking to have Dr Kidero’s accounts frozen.
Mr Juma said in his application that there have been claims that Dr Kidero received Sh650 million on behalf of the company that he never deposited and hence there is need to grant orders to freeze the accounts before the funds are transferred to an untraceable account.
“It is important that Dr Kidero’s accounts be frozen to the tune of Sh650 million pending the hearing and determination of this application, to protect this case, otherwise it may be rendered nugatory since he is likely to hide this money,” said Mr Juma in his court papers.
The allegations against the Nairobi governor were first made by Kakamega Senator Boni Khalwale who claimed that Dr Kidero received the funds on behalf of Mumias Sugar Company as envisaged in the sales agreement between Mumias and YH Wholesalers in 2012 for the sale of 13,450 metric tons of sugar.
Senator Khalwale said the money was never deposited to the Mumias Sugar Company account.
DEFAMATION CASE
The allegations are contained in the senator’s response to a defamation case filed against him by Dr Kidero.
Mr Juma said his case raises substantial questions of law and as a result, wants Chief Justice Willy Mutunga to constitute a bench of three or five judges to hear and determine the application.
President Uhuru Kenyatta had during the western Kenya visit in June this year, presented to the management of Mumias Sugar, a Sh1 billion bailout cheque from the National Government, and announced a revival strategy that includes undertaking a rights issue to raise approximately Sh4 billion.
However, Mr Juma said that Mumias Company has grounded to a halt and is facing eminent collapse and that the government’s efforts are proving inadequate.
“It is therefore necessary that all efforts be made that can contribute to the saving of the company,” Mr Juma said in his court papers.
He said Mumias supports livelihood of millions of people in Western Kenya who rely entirely on the company.
Many have delivered cane to the company but have not been paid for their labour and toil.
Dr Kidero is expected to respond.
“The payment has been received in the form of cash Sh650million and cheques (of) Sh495million.
It goes further: “The buyer agrees to buy a 50kg of sugar at a discounted price of 10 per cent of the ruling MSC pricelist on the day of delivery.”
The YH Wholesaler paid the money to Mumias Sugar Company through its KCB Bank account in Nairobi on April 13 and 16.
The transfer of the cash was from Diamond Trust Bank in Nairobi to KCB Bank in Nairobi and KCB confirmed receiving the money.
The depositing of the cheques was done at Equatorial Commercial Bank to KCB Bank.
ATTACHED RECEIPTS
Dr Kidero attached the payment receipts to confirm that Mumias Sugar Company received the money.
On Wednesday morning businessman Jacob Juma filed an application in court seeking to have Dr Kidero’s accounts frozen.
Mr Juma said in his application that there have been claims that Dr Kidero received Sh650 million on behalf of the company that he never deposited and hence there is need to grant orders to freeze the accounts before the funds are transferred to an untraceable account.
“It is important that Dr Kidero’s accounts be frozen to the tune of Sh650 million pending the hearing and determination of this application, to protect this case, otherwise it may be rendered nugatory since he is likely to hide this money,” said Mr Juma in his court papers.
The allegations against the Nairobi governor were first made by Kakamega Senator Boni Khalwale who claimed that Dr Kidero received the funds on behalf of Mumias Sugar Company as envisaged in the sales agreement between Mumias and YH Wholesalers in 2012 for the sale of 13,450 metric tons of sugar.
Senator Khalwale said the money was never deposited to the Mumias Sugar Company account.
DEFAMATION CASE
The allegations are contained in the senator’s response to a defamation case filed against him by Dr Kidero.
Mr Juma said his case raises substantial questions of law and as a result, wants Chief Justice Willy Mutunga to constitute a bench of three or five judges to hear and determine the application.
President Uhuru Kenyatta had during the western Kenya visit in June this year, presented to the management of Mumias Sugar, a Sh1 billion bailout cheque from the National Government, and announced a revival strategy that includes undertaking a rights issue to raise approximately Sh4 billion.
However, Mr Juma said that Mumias Company has grounded to a halt and is facing eminent collapse and that the government’s efforts are proving inadequate.
“It is therefore necessary that all efforts be made that can contribute to the saving of the company,” Mr Juma said in his court papers.
He said Mumias supports livelihood of millions of people in Western Kenya who rely entirely on the company.
Many have delivered cane to the company but have not been paid for their labour and toil.
Dr Kidero is expected to respond.
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