Salima Sugar Limited’s operations are expected to receive a major boost after the High Court lifted a freeze on the company’s bank accounts, unlocking vital funds and paving the way for a return to full productivity.
On Friday, High Court Judge Jabber Alide vacated an injunction freezing the bank accounts of Salima Sugar Limited, a government-owned sugar manufacturer. The company’s Executive Chairman, Wester Kossam, has welcomed the decision, describing it as a “great relief.”
Kossam admitted that the freeze had crippled Salima Sugar’s operations, preventing the company from paying crucial stakeholders, including sugarcane growers, and purchasing essential items like chemicals for sugar production.
“The freezing of our accounts almost suffocated us as we were unable to pay other crucial stakeholders including sugarcane growers,” said Kossam. “We couldn’t breathe, and all other operations were almost brought to a halt by this injunction, hence the decision to challenge it.”
With the accounts now unfrozen, Kossam expressed optimism that the company will start the new production season on a positive note, with sugarcane growers eager to work with Salima Sugar.
“With this ruling, we will be able to pay our sugarcane farmers plus paying for all our requirements including buying chemicals for both field and factory use,” he added.
Meanwhile, the company has been ordered to file and serve its defence to the claimant, Mukteshwar Sugar Mills Limited, within 14 days.
In 2023, the High Court Commercial Division granted an injunction to Audit Consult and Audit Consult Advisory Services, freezing the bank accounts of Salima Sugar Company Limited held at all eight banks in the country.
This drastic measure was taken due to Salima Sugar’s alleged failure to pay Audit Consult approximately K542 million for conducting a forensic audit at the firm.
0 Comments