MANAGERS SNUB GOVERNOR

Farmers condemn Oparanya meddling in Mumias Sugar

Cane union says Kakamega government has not put a shilling in troubled miller

In Summary

• Union expresses shock at Oparanya’s action when he knows government only owns 20 per cent of miller

• Unionist says Oparanya as chair of Council of Governors should seek audience with Uhuru on how Mumias could be helped

Kakamega Governor Wyclife Oparanya
TAKE OVER BID: Kakamega Governor Wyclife Oparanya
Image: FAITH MATETE

Sugarcane farmers have condemned attempts by Kakamega Governor Wycliffe Oparanya to take over troubled Mumias Sugar Company on Wednesday.

Kenya National Sugarcane Growers Union secretary general Richard Ogendo said Oparanya should stop cheating Kakamega farmers and Kenyans.

Ogendo told the Star on Thursday Kakamega county government has not put a single shilling in cane development, so what they are fighting over is basically metal.

He noted that Mumias was a company so heavily indebted to financiers that the  move by the governor would push the miller into receivership.

“When this is done, who will lose? The farmers and the shareholders,” Ogendo said. The governor is putting the company in jeopardy and unless he is a shareholder, there is nothing he can do.

Ogendo said the union was shocked by Oparanya’s action when he clearly knows the government only owns only 20 per cent of the company.

 “If there are issues in Mumias, and we know there are, Oparanya as the chair of Council of Governors can have a meeting with President Uhuru Kenyatta to specifically address the issue of the company. Otherwise he is putting in jeopardy the life of that factory,”  the unionist said.

Senior managers on Wednesday avoided a meeting with Oparanya who went ahead to form a committee chaired by County Secretary Jacinta Adhiambo to come up with recommendations on how his government could revive the company on Wednesday.

Oparanya toured the factory after the failed meeting and addressed a section of staff. But he changed tune, instead saying he wanted to partner with the management to revive the firm. 

He said the committee he formed will comprise county staff and two representatives from the company, one representing staff and another the union.

On Saturday, Oparanya had announced he would take over the company. He said he would deploy county enforcement officers and police to guard the company, claiming the management planned to sell its assets secretly.

But acting MD Issac Sheunda rubbished Oparanya's committee, terming it illegal and strange.

“We avoided the meeting as management because we don’t have the mandate to deal with the company changeover the governor wanted. We’ll not recognise the resolutions of the meeting because we were not part of it,” Sheunda said.

“The governor is behaving strangely since his election as Council of Governors chairman. He behaves as if he is invincible. Only God can tell.”

He said that Oparanya was meeting some of the staff as residents of Kakamega.

The governor was not genuine about revival of the company because it was he who told sugarcane farmers to uproot cane during campaigns and they did, the director said.

He termed as laughable claims by Oparanya that the company plans to sell off some assets secretly.

“We approached Oparanya and asked him to assist us by having county staff manage our non-core assets like the housing estate and the sports club and assist us in cane development but he declined, agriculture being a devolved function. He cannot then turn around and say we are selling them,” he said.

Sheunda said the board decided to lease off the assets to raise cash to commence operations since they would fetch more under management by an agent. The company has 2, 300 houses.

Sheunda said the government and lenders have said they will not offer further support after assisting pay farmers' arrears amounting to Sh700 million.

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