- The government only holds only 20.4 per cent of the shareholding in Mumias Sugar.
- Mumias was placed under receivership on September 20, 2019.
The revival of Mumias Sugar Company is hanging in the balance after the Public Procurement Administrative Review Board declined to review a 20-year leasing tender for a contract awarded to a Uganda-based firm.
In dismissing the request as filed by Tumaz and Tumaz Enterprises, the board, led by Faith Waigwa, said Mumias was not subject to the Public Procurement and Disposal Act because it is not a fully public-owned entity.
The five-member board said they have no jurisdiction to hear and determine the request for review with respect to the subject tender because the subject tenders asset disposal proceedings are not subject to the Act.
“Having found that Mumias Sugar is not a public entity, it is no brainer that it is then not a procuring entity for which the Act will apply and consequently any procurement and asset disposal proceedings conducted by Mumias Sugar would not be subject to the application of the Act,” the board said.
The board said the sugar company does not fit in any of the description of a public entity of the Act.
This is because the government, through the National Treasury, neither fully owns nor has a controlling interest in Mumias Sugar.
The government only holds only 20.4 per cent of the shareholding in Mumias Sugar.
Tumaz filed the request for review, saying there was a lack of transparency in the manner the tendering process was conducted. It said that the process was tainted with fraud and illegalities.
It further claimed that the KCB-appointed receiver manager Ponangipalli Venkata Ramana Rao, failed to give all tenderers an open and a transparent opportunity at winning the tender thus compromising the fairness and transparency of the process.
The company wanted the board to cancel the decision of Rao announcing Sarrai Group as the successful bidder and the tender be awarded to them or in the alternative order for a review of the bid.
Mumias was placed under receivership on September 20, 2019.
(edited by Amol Awuor)