Sh3.2 billion state funds to Mumias Sugar wasted - Western politicians

A worker weighs and packs bags of sugar at the Mumias sugar factory in western Kenya February 24, 2015./REUTERS
A worker weighs and packs bags of sugar at the Mumias sugar factory in western Kenya February 24, 2015./REUTERS

The Sh3.2 billion the government gave for Mumias Sugar Company's revival has been mismanaged, former ODM national youth leader Rashid Mohammed has said.

Cane farmers are languishing in abject poverty as a result, Mohammed said, and added that the opposition contributed to the company's failure.

He did not elaborate but said opposition leaders have been critical of the revival process initiated by the government.

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Mohammed asked Deputy President William Ruto to help change the company's fortunes saying it is the regions "only cash cow".

“Should Mumias collapse, that will be the end for millions of Kenyans from Western. Ensure the management of Mumias is checked and the board is removed," he said.

Mumias East MP Benjamin Washiali, who also attended a funds drive presided by Ruto at Lung’anyiro in Matungu on Saturday, said they approached him and President Uhuru Kenyatta on the matter of stablising the miller.

“But the funds have been diverted from the intended purpose – payment of outstanding farmers’ arrears. We want these farmers paid so they can be motivated," he said.

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Washiali

asked Uhuru and Ruto to look into Mumias Sugar's affairs and establish how money is spent.

“Ensure all managers who worked under the former managing directors, who brought the company to near collapse, are sacked because they remained with the virus of corruption and are spreading it," he said.

In his address, Ruto reiterated the government's commitment to restoring the company, noting the amount that has been pumped into it

so far.

The DP said the aim is to restore profitability for the sake of the millions of Kenyans who depend on the company for survival.

“It cannot be possible for the company to collapse yet millions of Kenyans earn their living from working there," he said

where he presided over a funds drive on Saturday.

Ruto blamed Mumias Sugar's former managers for its troubles saying they harboured ill intentions against cane farmers.

“Those who previously managed the company aimed at looting the firm to enrich themselves,"he said.

"They left Mumias in the ICU, but we shall ensure the management is proper so that the company can benefit farmers who grow cane in the Western region and beyond."

In February, Washiali pushed for Nairobi Governor Evans Kidero to take sole responsibility for the collapse of the Mumias Sugar Company.

But Kidero was given a lifeline when National Assembly Speaker Justin Muturi threw out amendments by Washiali.

The amendments to the report of the problems facing the sugar industry, which has been pending for eight months, would have seen Kidero barred from holding public office and made to pay Sh577 million lost in taxes during his tenure from 2003 to 2012.

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Matungu MP David Were asked Ruto to talk to the President about writing off all of Mumias Sugar's debts.

“This is the only way to help Mumias to return to profitability. The debts are too overwhelming and consume every single cent injected in the firm,” said Were.

He noted the company currently has no

commercial value and that farmers are being frustrated.

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