Mumias Sugar company has yet again found itself into deep trouble after auctioneers issued a notice demanding for Sh13 million through a labour row awarded by the High Court in Kisumu.
The money was awarded to Pamela Luttah after she sued Mumias for wrongful termination of her contract in 2015, where she worked as the head of commercial sales.
Mumias managing Director Patrick Chebos said that should the company give way for Ms. Luttah to auction the miller, it would open doors for other debtors who are currently demanding for more than Sh20 billion to step in.
“We are willing to pay all the outstanding debts once finances are available and we stabilize our operation of cane crushing,” said Chebos.
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Mumias owes over Sh1 billion in unpaid taxes and interest emanated to KRA, and over Sh700 million in unpaid finances to cane farmers.
The court issued the ruling on January 22, but police failed to take up action on time.