SUGAR WARS

Court directs new Mumias administrator to take charge

Mumias management continues to be entangled in a web

In Summary

Kerato Marima was appointed by the court last month to take over from Ponangipalli Rao who was relieved off his duties by Justice Alfred Mabeya.

The court said Marima as the new administrator should run the affairs of the company as directed in his earlier judgement.

Mumias Sugar Company entrance
FILE Mumias Sugar Company entrance
Image: HILTON OTENYO

The battle for the control of Mumias Sugar is far from over despite the administrator taking over from the former who was removed by the court.

Kerato Marima was appointed last month to replace Ponangipalli Rao who was relieved off his duties by Justice Alfred Mabeya.

But last week Justice Dorah Chepkwony stopped the execution Mabeya's judgement pending the hearing of an application by Sarrai challenging it.

Yesterday, Justice Mabeya extended the orders that allowed Sarrai Group to continue operations in the sugar mill but said it does not reinstate Rao and so Marima should continue as the new administrator.

“I have seen the order, What the order has done is to maintain the lease. It doesn’t stop the removal of the previous administrator. Kereto Marima is expected to have taken over the running of the affairs,” the judge said.

The court said Marima as the new administrator should run the affairs of the company as directed in his earlier judgement.

In the new application, Sarrai got the stay orders last week after convincing the court that their case is arguable because they were not given a fair trial by Judge Mabeya.

West Kenya Sugar had asked the court not to extend the orders issued last week arguing that it would be absurd.

Through lawyer Martin Gitonga, the miller argued that handing over has since taken place and extension puts in limbo the conduct of the new administrator.

“The interim order was given on non-disclosure. They say they were condemned unheard but that’s not the case. They were heard,” Gitonga argued.

He also claimed that there is a problem at Mumias since Rao stepped down and Sarrai had refused to vacate.

Gitonga also also raised the issue of security, asking who was in charge of this considering that Rao was removed and handing over is still ongoing.

“Very expensive boilers, turbines and computers. They do not have a duty of care to anybody. There should be some form of security, if the stay orders are to be extended,” he said.

But, Lawyer Edmond Wesonga said Sarrai Group had complied and vacated the premises but on Thursday last week re-entered the premises claiming the stay orders didn’t reinstate it back to the premises.

Lawyer Wesley Gichaba for Sarrai told court that it would be unfair for the court to decide based on what the lawyers had submitted from the bar.

He urged the court to extend the orders and hear their application saying the court cannot shut its eyes on the application filed.

Sarrai has faulted the court for failing to enjoin them to the applications by Vartox as well as its failure to allow its counsel to respond to any submissions made against it in the said proceedings.

“The court subsequently issued the order revoking, cancelling and nullifying the lease awarded to Sarrai group thereby condemning them unheard, contrary to the rules of natural justice and the right to fair hearing,” reads court papers.

The lawyer said Vartox, which is a party to the court to these proceedings and was only joined in the ruling issued on April 4.

“The respondents will not suffer any harm or prejudice by the stay of execution orders and the proceedings herein that cannot be compensated,” the application reads.

 

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