House team to quiz Mumias Sugar chiefs on Sh3bn use

The Mumias Sugar Company's main gate. PHOTO | NATION MEDIA GROUP

The House Committee on Agriculture will this week question the top management of Mumias Sugar Company over alleged mismanagement of Sh3 billion released by the government to bail out the struggling miller.

Mumias East MP Benjamin Washiali said the team will be seeking explanations on why the funds meant to pay farmers were redirected into settling contractors’ and suppliers’ dues. He did not, however, state the exact day when the session will take place.

Mr Washiali, who is also a member of the committee, said if it is established that the billions from government were not utilised properly, then the company’s top management will be sent packing.

“We will overhaul the management of Mumias if it is proven that the taxpayer’s money meant to revive the state-owned firm was put to waste,” he said.

Mr Washiali said the money was released to help the struggling firm to clear accumulating arrears owed to farmers and revival of sugarcane production. Currently Mumias owes its farmers Sh700 million for sugar cane deliveries.

“We are aware the money was diverted into other projects not intended; that’s why we want the management to shed light on the issue and tell us how much was paid to suppliers and contractors and why,” he said.

He went on: “We must also be told how much was paid to farmers and the list of beneficiaries.”

Speaking in Shianda market, Kakamega Sub County, Mr Washiali regretted that misplaced priorities by the management had also led to acute shortage of raw materials.

He, at the same time, warned a local activist who is planning to lead a demonstration seeking to oust the company chief executive officer Errol Johnston and the board of directors chairman Dan Ameyo from office on grounds that they are incompetent. 

“We must uphold the rule of the law even as we push for the restructuring of the management.”

Meanwhile, Mumias Sugar Company, through communication officer Moses Owino, has denied claims that it will close down from November for routine annual maintenance of the mills.