Harveen Gadhoke appointed as Mumias Sugar administrator
KENYA – In response to the application to the High Court by lawyer Jackline Kimeto, the court has appointed Harveen Gadhoke as the new administrator of Mumias Sugar Company.
Ms. Jackline Kimeto, had asked the High Court of Kenya to appoint a new administrator to manage the miller to secure the assets of the company and comply with the directions of this court issued on the 14th of April 2022.
She stated that the term of Mr. Kereto Marima, who was appointed the interim administrator by High Court Judge Alfred Mabeya in April last year, has since lapsed.
With the lack of an administrator, Ms. Kimeto was apprehensive that the assets of the once giant miller would be pilfered to the detriment of all creditors, who might never recover their debts. She is seeking more than Sh76 million from the collapsed miller.
The judge also directed Inspector General of Police Japhet Koome to provide the administrator, who is an insolvency practitioner, with armed security as he takes over the assets of Mumias company.
Ms. Kimeto had also requested the court to direct Mr. Rao and Marima to file a compressive report of all activities they have undertaken as administrators since November 2021.
The court appointed Mr. Marima to replace Mr. PVR Rao as the administrator after the latter’s tenure was cut short over failure to comply with the provisions of the Insolvency Act.
She also wanted the duo to hand over all documents, including books of accounts, ledgers, leases, title deeds, and logbooks to the new administrator.
In the event of an appointment, the lawyer had asked the court to instruct 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.
The appointment sends the miller and its shareholders back to the drawing board to look for ways of paying off its debts and getting investors.
Recently, the High Court found the Ugandan-based Sarrai Group Ltd, which had won a 20-year lease to run the company, in contempt of court for going on with operations at the troubled factory Mumias Sugar Company, despite being ordered to stop.
Justice Dorah Chepkwony found the senior officials of Sarrai Group Ltd, including its owner Sarbjit Singh Rai, in contempt of court and ordered them to pay Sh100,000 each, over the failure to cease operations as directed on July 28, last year, Business Daily reports.
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