02/13/2007

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TOP SONY MANAGERS SUSPENDED OVER FERTILIZER


By Arrum Tidi

Two top managers with the Awendo based Sony Sugar Company Limited have been placed under suspension pending the decision of the Kenya Anti Corruption Commission (KACC) to either prosecute them in connection to the alleged mega scam in which the sugar company is alleged to have lost millions of shillings.

The Acting Managing Director, Mr. Kennedy Ayuko is said to have served the two, Mr. Silvester Namsando, the company Finance Controller and Mr. Omira, formerly the Purchasing Manager who has recently been transferred to be in charge of Stores, with suspension letters over the weekend.

Other top managers who were involved in the scam included the former Managing Director Mr. Ambrose Otieno (who was sacked) and the former former Logistics Manager Mr. J. C. Ochieng, who has since retired from the company services, after reaching the mandatory retirement age.

It was however not immediately made clear whether those who are already out of service of the firm will also be pursued by KACC investigations or not.

A source at Awendo confided to us that the two would be charged with the offence related to the failed attempt to purchase a second hand earth crater, which was supposed to have been sourced in South Africa at the cost of Kshs. 13 million.

Sony Sugar is said to have advanced the whole amount of Kshs. 13 million to the supplier/dealer who have since allegedly closed his business without delivering the earth crater.

KACC team of investigators have been pitching camp at the Awendo base sugar factory for the last two months.

Also being investigated was the deal to purchase and deliver fertilizer worth Kshs. 200 million. The fertilizer was sourced from three different suppliers and promptly paid for.

The suppliers in collaboration with their contacts among the top company managers are said to have pocketed close to 15 million, which was allegedly paid in excess of the firm's needs, the extra being kick back money.

The fertilizers were delivered immediately and the money paid promptly in suspicious manner as opposed to the normal system of 90 days line of credit.

When KACC team moved to investigate the irregular suppliers of fertilizers and the failed delivery of paid for land grader from South Africa, these files were stolen from a Migori Hotel in which they were booked. They had to start new investigations afresh. The stolen files were never retrieved and theft was suspected to be part of the work of Sony Sugar top managers who had panicked a great deal.

Also being investigated by KACC is the allegation that the former management under Mr. Ambrose Otieno, had advanced some farmers payments to the tune of kshs.10million against standing cane.

These farms could not be traced later as the farmers are said to have sold the same cane to Juggery factories, depriving Sony Sugar a chance of recovery of colossal amount of money. And the investigating team, according to a source, were out to establish who were responsible for such payment, who authorized the payment and who were the signatories. This case would also come before the court.


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