An MP and an MCA from Siaya have asked Governor Cornel Rasanga to clarify the status of Yala Swamp that was leased to Dominion Farm.
The farm halted operations two years ago citing political interference. It is understood the Swamp has been secretly leased to Rai Group of Companies.
Dominion Farm leased the swamp for 25 years. The lease will expire in 2032. Bondo MP Gideon Ochanda and Central Alego MCA leonard Oriaro want Rasanga to clarify how Rai was brought into the swamp.
County communication director Jerry Ochieng said Dominion Farm is under KCB receivership and that it is KCB that has brought in Rai Group of Companies.
Dominion had KCB debts when it closed. Sources said KCB has leased the swamp to Rai to recover its debt.
Alego Usonga MP Samuel Atandi said he was aware Rai Group was moving in. He said Dominion owed KCB Sh50 million.
Atandi said a round-table discussion was being organised to deliberate the move.
But Oriaro wants Rasanga to tell residents the truth about the status of the swamp. He said the matter was of great concern to residents and the community around the swamp.
"It is high time the county government stopped lying to residents that Dominion Farm is still under receivership by KCB yet it has leased the land behind our backs," Oriaro said.
Oriaro said Rai group has made payments to the county. He said no new investor will be allowed to operate on the swamp until an assembly report ensuring residents to benefit is implemented.
"Some of the resolutions passed include allowing the locals to cultivate part of the swamp and be part of the shareholders," Oriaro said.
He was speaking at the county assembly boardroom in Siaya town.
Ochanda said the swamp involves many players and should not he handled without public participation.
The MP said he will ensure Bondo residents who benefited from the swamp are not sidelined by the new investors. He said an agreemen
"So if any other investor is coming, they should also consider the legal agreement between Dominion and the defunct municipal council," Ochanda said.
The agreement required Bondo residents to be employed.
The MP said he will use the roundtable talks to brief the new investors on the deal reached with Dominion Farm.
Ochieng said the status of the swamp can only be clarified by the receiver manager - KCB. Dominion had acquired a court order barring activities on the swamp until its lease expires.
He disclosed that dispute the fact that Dominion had a legal agreement they were sneaked in by the defunct municipal council and it became the problem to residents throughout.
He added that when indeed another investor is coming in then they must know and have a roundtable discussion on terms and conditions.
Alego Usonga MP Samuel Atandi confirmed that he is aware Rai company is moving in under the KCB manager receivership.
Atandi clarified that Dominion closed with over Sh50 million KCB debt and that's why KCB has taken over the swamp to recover its debt.
The MP added that already plans for a roundtable discussion with all stakeholders are on and they will be deliberating on the issue very soon.
However, the county government through the county communication director Jerry Ochieng said the Dominion firm at the moment is under the receivership of KCB and it is the receiver manager who would give the best position on the receivership status.
Ochieng added that as a county government they have had a preliminary engagement with the receiver manager because there are so many claims which touched on the local people and the community.
The communication director distanced the county from the Rai company saying they are yet to be brief by KCB on the where about of the said company.