A report prepared by Auditor General Nancy Gathangu dated 16th February 2022 reveals massive rot at the trouble-ridden South Nyanza Sugar Company (Sony). The report reveals that the Board was paid allowances amounting to Ksh.11, 878,000 by the financially struggling miller. According to the report, the board had eleven board meetings instead of four as recommended by Treasury Circular No. 2020(OP/CAB.9/1A)
The higher number of meetings way above the approved number significantly contributed to higher board expenses in a period the company is experiencing financial difficulties.
In addition, the Company paid an officer from the Inspectorate of State Corporations Ksh. 560,000 as allowance for attending board meetings in a supervisory capacity as part of her regular duties contrary to the Attorney General Circular AG/CONF/6/D/73 dated 22nd August 2013 that advised that sitting allowances or other remuneration is only payable to duly appointed chairperson and members of board attending a board meeting.
Consequently, the Management was in breach of the law. The report further reveals that the Company had appointed nine employees in acting capacity for a period beyond the stipulated six months, with some officers acting since 2015 in contravention of Section C.14(1) of the Public Service Commission Human Resource Policies and Procedures Manual, which prohibits an officer from acting in a position for more than six months.
Sony’s acting Managing director Stephen Ligawa is said to have failed to improve on the management of the Sugar Company and more so staff welfare with employees demanding hundreds of millions in unpaid salary arrears.
