The troubled Nzoia Sugar Company is yet again on the limelight over Sh217 million payments for goods and services ordered seven years ago and have never been delivered.
An audit on the finances of the sugar firm has revealed that the company is yet to deliver goods and services that were ordered seven years ago despite an advanced payment of Sh216.57 million shillings.
The audit on the financials of the company further revealed over thirty-three advance payments made to fourteen suppliers for various goods and services but are yet to be delivered for the financial year 2014/2015
Some of the transactions include twelve payments made for the supply of tubes and the modification of a boiler machine, three payments of Sh36.69 million for a juice filtration and vacuum machine.
Four payments of 16.22 million for servicing of a centrifugal pump. Five payments total Sh12.18 million for the supply of an evaporating machine.
A report by the miller alleged that some of the suspect orders were worth Sh127.39 million.
Another batch of items worth Sh43.51 is yet to be cleared at the port of Mombasa, an additional shipment worth Sh34.41 is on its way to the Mombasa port, while items worth Sh10.27 are awaiting inspection.
“The company did not, therefore, obtain any value from the goods, and the funds spent are at the risk of getting lost”, Auditor General Nancy Gathungu said.
The report by the Auditor-General question the decision of the management that led to the financial insolvency of the miller.
Highlighting an audit report in 2021 showed the miller bought a cane crushing plant 28 years ago but has since not been used.
The purchase was done to increase can processing to 7000 tonnes from 3000 tonnes.