• Justice Jairus Ngaah who heard the case on January 6, directed the parties to appear for a hearing on Monday, January 10.
Image: HILTON OTENYO
An application seeking a jail term for Ugandan firm Sarrai Group (Sarrai) directors and Mumias Sugar receiver-manager PVR Rao (Rao) for contempt of court has been filed at the high court.
Tumaz and Tumaz Enterprises (Tumaz), which claims to have placed the highest bid of Sh27.6 billion against Sarrai's alleged Sh11.5 billion for Mumias lease, filed the application under the certificate of urgency at the Milimani high court.
The court papers link the Sarrai group and Kenya Commercial Bank (KCB).
Justice Jairus Ngaah who heard the case on January 6, directed the parties to appear for a hearing on Monday, January 10.
Justic Ngaah, however, ruled that the matter should be heard by the Judge who issued the order suspending the lease.
"The orders alleged to have been breached and which now forms the foundation of contempt proceedings were made by Justice Anthony Ndungu, I direct that this matter be mentioned on January 10th, 2022 before Justice Ndungu for directions and orders he may deem appropriate," Justice Ngaah ordered.
Tumaz, a firm owned by Mwale City investor Julius Mwale, told the court that Sarrai Group had started work at the sugar milling plant despite the existence of a court order barring them from doing so.
This is after an order suspending the lease was issued on December 29, 2021.
The court heard that the orders were served to both Sarrai and Rao on December 30 and 31, 2021.
Sarrai which is linked to the Rai family has been carrying out a series of activities in Mumias firm including meeting Kenya Power officials in a bid to have electricity restored at the facility, the court was told.
Sarrai is also alleged to have had a meeting with the engineers at the firm to deliberate on ways of reviving the sugar milling plant.
Earlier in the week, Sarrai manager presented evidence in court showing machinery and tractors ploughing Mumias nucleus estate.
The exhibits were presented to support Sarrai’s case challenging the gag order.
Sarrai's application seeking to have the order suspending the lease lifted was dealt a blow after Justice Ndung'u declined on Monday.
Other bidder France based Kruman Finances, who allegedly offered Sh19 billion bid for the 20-year lease, have also protested the lease award to Sarrai.
Senate
Tumaz has also written to the Senate through their lawyers seeking parliament's help in compelling RAO to provide information on bidding outcomes to bidders and the public.
They also appealed to the Senate to request information on the procedure and evaluation used.
Tumaz further wants to know who carried out the evaluation and why other bids were unsuccessful.
The company wants the Senate to ask Rao to provide the impact of seizures of Cogen and ethanol plants by French lender Proparco and Ecobank respectively, whose assets were part of the August 4th tender notice by Rao.
Sarrai allegedly offered Sh3 billion as part of its package for the Sugar miller excluding the Cogen and Ethanol plant, according to court papers.
Tumaz now argues that it is not clear whether Sarrai's 20-year lease "was worth as no information has been provided to the bidders or the public by Rao".
The Public Procurement Administrative Review Board (PPARB) and the High Court last week suspended the leasing award to Sarrai until the case filed by Tumaz is heard, and determined.
Tumaz cited fraud, mistakes, and legal irregularities in the bidding process.