This archive report was first published on 2 October 2019.
On October 2, 2019, Sony Sugar Company's financial struggles deepened after the Commissioner for Cooperatives froze the company's bank accounts over a Sh92 million Sacco debt.
The company failed to remit monthly collections deducted from members of Sony Sugar Sacco, leading to the accounts being frozen.
According to The Standard, the acting Commissioner for Cooperatives, Geoffrey Jang'ombe, blocked the company from accessing the accounts until it provides an explanation.
The company owes farmers Sh552 million, and its management confirmed that the accounts had been frozen, but said it was working to have them opened.
"The top management is following up the matter with the commissioner to unblock the accounts," said Mwita Nyangi, who chairs the Finance committee in the company's board.
Senior officers in the company painted a gloomy picture of its financial status, saying it had not been able to make enough money to honour Sacco payments for the last seven months.
"Even the employees from whom the money is supposed to be deducted have gone for seven months without pay," a senior accountant who declined to be named told The Standard.
The company's wage bill stands at Sh72 million per month, and its members of the board were in Nairobi for a meeting with Commissioner of Cooperatives over the matter.
The board wants the accounts opened to enable the firm to offset part of the dues owed to farmers.
