Sony Sugar MD on compulsory leave over funds misuse claims

What you need to know:

  • Board chairman Charles Owino said the decision followed a protest letter by the Kenya Union of Sugarcane Plantation and Allied Workers.
  • This comes barely a day after some 2,000 workers went on strike and held demonstrations in Awendo, Migori County, in a demand for close to Sh100 million in salary arrears.

The Sony Sugar Company board on Tuesday sent Managing Director Bernard Otieno on compulsory leave over claims of embezzlement of funds.

Board chairman Charles Owino said the decision followed a protest letter by the Kenya Union of Sugarcane Plantation and Allied Workers, which made the allegation of misappropriation of the funds.

The chairman denied reports that the MD had been suspended.

“Before suspending somebody there are procedures to be followed. The current position is that the MD is on a compulsory leave, pending the decision that will be reached at Friday’s meeting,” he said.

He added that board members will meet next Friday to discuss the way forward.

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Mr Otieno's compulsory leave comes barely a day after some 2,000 workers went on strike and held demonstrations in Awendo, Migori County, in a demand for close to Sh100 million in salary arrears.

The board accused local politicians he did not name of hiring goons to protest on Monday "on the pretext of being our employees".

“We are asking politicians from this region to go slow on this issue. We want calm as we look for the way forward,” Mr Owino said.

The union's Deputy Secretary-General John Ogutu said Mr Otieno and acting Finance manager Peter Otieno should be investigated.

“Following an agreement with the board of directors yesterday, the two are to be investigated for mismanagement of the factory,” Mr Ogutu told the Nation by phone on Tuesday.