A parliamentary committee has threatened to block additional bail-out funds for Mumias Sugar Company until its management shares KPMG’s forensic audit report with MPs and the Agriculture ministry.
The National Assembly Agriculture Committee yesterday told the Mumias board to be accountable. Agriculture CS Willy Bett said the management has to seek permission from KPMG before sharing the report.
The KPMG audit was commissioned by the board and adopted on September 1 last year.
The report identified management problems in Mumias Sugar during Nairobi Governor Evans Kidero’s tenure as managing director. Kidero was MD for eight years, resigning in 2012 to enter politics.
“We wrote to Mumias for final adoption of the report but being a private company and the document confidential, we are still waiting because the board has to seek permission from KPMG,” Bett said.
MPs said the report should be made public because the miller has received more than Sh2 billion from public coffers.
“We need that final, adopted audit report. The government cannot continue pumping money into Mumias, yet the same company cannot share information with the government. The committee will not allow this,” vice chairperson Kareke Mbiuki said.
Kwanza MP Ferdinand Wanyonyi demanded Bett disclose whether billions of taxpayers’ money pumped into Mumias was part of President Uhuru Kenyatta’s political strategy, saying there was minimal supervision on spending.
Busia woman representative Florence Mutua asked Bett to give the committee a comprehensive breakdown of how the money has been spent in restructuring the miller and compensating its farmers.
Mutua said there have been complaints that genuine farmers have been left out.
Bett told the committee the more than Sh2 billion given to Mumias is a loan with a five per cent interest rate.
He said the Agriculture ministry will ensure Mumias makes public the KPMG report by the end of May.
“They have to give us the report. I have already started the process. If I find out that it is not given to the ministry, then I will come back and say there is a problem,” Bett said.
The CS appeared before the committee to respond to MPs’ questions.
Mumias East MP Benjamin Washiali had demanded Bett brief the committee on how the ministry will ensure the funds are properly used.