MPs summon Mumias Sugar directors over spending of Sh3bn bailout funds
The Mumias Sugar Company's main gate. A parliamentary committee has summoned the company's directors to shed light on how Sh3 billion in government bailout money was spent. PHOTO | NATION MEDIA GROUP
What you need to know:
- The directors should make public an audit report that shows those responsible for the collapse of the miller.
- The company’s Chief Executive Officer Errol Jonson said the company has invested Sh430 million on cane development.
A parliamentary committee has summoned directors of Mumias Sugar Company to shed light on how Sh3 billion in government bailout money was spent.
The directors have been ordered to appear before the committee on Thursday next week.
The Agriculture Committee, chaired by Justice Kemei, said MPs want to know how the company used the money.
“We have asked for the full account of the same. We need to be sure that the money provided by the government was used for the intended purpose,” he said
Mr Kemei said the money was released to help the struggling miller to clear accumulating debts owed to farmers and to revive sugarcane production. Currently Mumias Sugar owes farmers Sh700 million.
He also noted that the directors should make public an audit report that shows people responsible for the collapse of the miller.
“We desire to have that report so that we can interrogate it,” he said
Speaking during a fact-finding mission at the factory, Mr Kemei sought to know whether the miller's directors have a strategic plan to revive it.
The company’s Chief Executive Officer Errol Jonson said the company has invested Sh430 million on cane development, adding that cane shortage had affected its production.
