CORD leader Raila Odinga has denied owing Mumias Sugar Company money.
Speaking in Matungu, Kakamega, during the burial of Peter Posho, the father of Kakamega ODM party secretary Paul Posho.
Raila said Spectrum International Company, associated with him, does not owe Mumias Sugar money.
He said Spectrum International used to purchase molasses from Mumias on a fund guarantee basis.
“We used to purchase molasses from MSC at an agreed price just like we are doing with other sugar millers like Muhoroni, West Kenya, South Nyanza and Nzoia. We never remained with MSC money,” Raila said.
He said Mumias Sugar was brought down due to management problems and bad politics.
“MSC produces 100,000 million tonnes annually, which is sold at Sh20. How would Spectrum have accumulated Sh300 million when there are banks to repay the money in case my company runs into debt?” Raila said.
He accused the government of allowing the smuggling of cheap imports, which affects sale of locally produced sugar.
“The people doing this business are known, why can’t the government stop it to promote our locally produced sugar?” Raila said.
He said the sugar industry is threatened by lack of goodwill from the Jubilee administration, which intends to capitalise on dwindling sugar industries for political mileage.
“Why is it that Rivatex in Eldoret and Kenya Airways received grants from the government but Mumias was given Sh1 billion loan?” he asked.
“If the President is genuine in reviving Mumias, he should give a grant and waive all debts instead of adding more burden to the cash-strapped miller.”
The Cord leader said the sugar industry requires a comprehensive approach to be revived and remain stable.