Mumias Sugar Company new management has noted that they haven't paid their creditors yet.
Early last month, over 400 employees were sent home as new management was being installed at the company.
"Consequent to the company being placed in receivership, all employees contracts stand terminated from the date of receivership i.e 20th September 2019. Any payment to the affected employees shall be dealt with in accordance with the provision of the law," reads the termination letter in part as seen by Standard.
However, on Tuesday, the receiver-manager Ponangipalli Venkata Ramana Rao pointed out that they haven't paid the former employees and other creditors as the former management has not handed over crucial documents to process the payments.
Speaking to the Senate Labour and Social Welfare Committee, Rao noted that these crucial files must be available to process the payments.
“Until the directors provide information on the creditors, debtors, staff, assets and liabilities of Mumias Sugar Company, the receiver cannot do much,” said Rao as quoted by Standard.
However, Rao revealed that the matter is being followed and hope that it gets resolved soon.
“We hope to resolve this matter today. If this fails, we will move to court to compel the directors to provide the statement of affairs of the company,” Mr Rao said as quoted by Standard Media.
The KCB Bank took over the management at the troubled miller after it failed to pay them their loans.