Dubai-based Vartox Resources Inc has withdrawn from a case where it had accused KCB Group and Mumias receiver manager of being part of a syndicate where assets of distressed companies are sold at a gross undervalue.
Previously, Vartox Resources Inc. joined a case seeking the removal of Ponangipali Ramana Rao as the administrator of Mumias Sugar Company.
Vartox Resources alleged that this was an obvious case of fraud and corruption.
The filed application reads, “Take notice that Vartox Resources Inc., the 3rd Respondent in these proceedings hereby wholly withdraws its application dated 25 December 2022.”
The company claimed that this was an obvious case of fraud and corruption.
Mumias Sugar Company is under receivership, and PVR Rao was appointed as the sugar miller’s receiver manager. Justice Alfred Mabeya issued an administrative order on Nov 19, 2021, against the company appointing Mr Rao as the administrator. It allowed him to proceed with the process of leasing the Mumias Sugar Company’s assets.
The troubled sugar miller Mumias Sugar Company’s trading of its shares on the Nairobi Securities Exchange (NSE) remains suspended.
The miller posted a net loss of KSh.15.1 billion in the financial year 2018/2019 compared to the previous year’s loss of KSh.6.8 billion.