A fresh row between Mumias Sugar Company and the Kakamega County Government could derail efforts to revive the ailing firm.
The company’s board and management have dismissed the purported seizure of operations at the sugar firm by the county administration.
Board Chairman Kennedy Ngumbao said recent attempts by Governor Wycliffe Oparanya to take over management of the sugar miller were unlawful and worrying.
In an advert published yesterday, Mr Ngumbao said Mumias Sugar was a private entity despite a 20 per cent stake owned by the National Government.
READ MORE
Governor Barasa outlines plans to transform urban areas
Sugar millers suffer due to cane poaching
How State plans to tame rogue saccos
Audit underway for Sh2b coffee debt write-off, says Oparanya
“Mumias sugar is a private company whose liability is limited by shares. The Government, through the National Treasury, has a shareholding of approximately 20 per cent in equity while local individual, institutional and foreign investors variously hold the remaining shares, “ he said.
Mr Oparanya recently formed a committee to develop a road map for revival of the sugar factory.
The 12-man committee is chaired by Trade executive Kassim Were with two slots reserved for representatives from the sugar firm.
Oparanya said the intention is not to take over the management but work with other stakeholders to salvage the struggling firm.
“Our focus is on reviving the factory, not seizure of operations. I’m not interested in becoming the CEO at Mumias Sugar but as the governor, I have to push for the welfare of my people,” he said.
But Mr Ngumbao said all the company’s decisions are made through resolutions of a properly constituted board of directors.
“The board has put in place a competent management team driven by the CEO to oversee and implement the company’s strategic plan,” he said.
Meanwhile, farmers in Awendo are demanding to be paid for their cane delivered to Sony Sugar Company that has been pending for months.
The company currently owes the farmers about Sh400 million for deliveries dating back to November last year.
The firm’s management accountant, Edward Odhiambo, said they are sourcing for money from banks and the county government to help them offset the debts.
“Farmers are on our necks. They come here on a daily basis demanding for pay, but our hands are tied. We have no money at the moment to promptly pay them,” he said
