Leaders demand audit at Nzoia

Bungoma County leaders have demanded a thorough audit of operations of Nzoia Sugar Company.

The audit should establish why the firm is plagued by financial difficulties yet it harvested, milled and sold sugar.

The audit, according to the leaders who had met at Nzoia Guest House, would shed more light on the firm’s operations and recommend how to bail it out of its current financial woes.

At the meeting were members of Parliament from the county, Nzoia Sugar Company managers, Kenya Sugar Board director Saul Busolo and representatives of sugar farmers.

Bungoma Governor Ken Lusaka and Senator Moses Wetangula were also present.

PAYMENT DEMAND

The leaders’ demand comes in the wake of protests by farmers who are demanding payment for tonnes of sugarcane delivered to the factory for six months.

The farmers who had learnt of the meeting, turned up in large numbers at the venue, and at some point attempted to force their way in.

Police had to be called in to restore order. They blocked the entrance and kept vigil throughout the meeting.

The farmers had placards critical of the company management.

The leaders, in a statement read to the media by Kanduyi MP Wafula Wamunyinyi after the meeting, said management of Nzoia Sugar Company led by managing director Saul Wasilwa should take full responsibility for failures at the factory.

They demanded a blueprint of how the management intended to turn the loss-making factory into a vibrant profitable company.

Further, the leaders told the management to diversify company operations to stop relying only on cane. “As leaders we shall work together and ensure farmers are protected and paid on time,” read CHEAP IMPORTS

Mr Busolo demanded an overhaul of the company’s management to improve efficiency.

The management however blamed the decline in sugar prices for its inability to pay farmers on time.

Mr Wasilwa said sugar prices had fallen from Sh7,000 per 50 kilogramme bag a few months ago to the current Sh3,200. He blamed this on cheap imports.

The MD disclosed that the factory had more than 85,000 bags of unsold sugar worth Sh350 million in its warehouse.

WHAT AILS NZOIA?
Management taken to task

• Leaders question why farmers not paid for tonnes of cane delivered
• Management asked to diversify production and not rely solely on sugar
• Leaders want blueprint on how management would tackle problems