Sh3bn sugar exports fake: report
What you need to know:
- “Exports for 2006 to 2012 are given as 52,284 tonnes while the itemised list to individual companies totals to 30,204 tonnes.
- Minutes from the report dated November 13, 2014 showed that the committee agreed to expunge the names of Nairobi Governor Evans Kidero, who was the sugar company’s managing director, and Ms Rosemary Mkok, a sugar board official.
- “Nzoia Sugar Company has a debt of Sh37 billion, Miwani Sugar Company (in receivership) Sh28 billion, Muhoroni Sugar Company (in receivership) Sh27 billion, Chemelil Sugar Company Sh5 billion and South Nyanza Sugar Company Sh3 billion.”
Top managers at Mumias Sugar Company colluded with Kenya Revenue Authority officials and made fictitious sugar exports of Sh3 billion between 2006 and 2012, says a parliamentary report.
They worked together to give the impression that the sugar was exported, according to the report by the National Assembly’s Agriculture committee.
The report says the export entries shot up from 8,000 tonnes to 71,000 tonnes without proper documents.
“Exports for 2006 to 2012 are given as 52,284 tonnes while the itemised list to individual companies totals to 30,204 tonnes.
“However, figures from the revenue authority indicated that the company had exported 71,272.58 tonnes,” says the report.
A KRA system confirmed that only 8,133 tonnes were exported, according to the report tabled in Parliament last Thursday.
MENTIONING NAMES
The committee avoided mentioning names of the officials, but said action should be taken against them.
The House team is on the spot for allegedly altering the report to remove names.
Minutes from the report dated November 13, 2014 showed that the committee agreed to expunge the names of Nairobi Governor Evans Kidero, who was the sugar company’s managing director, and Ms Rosemary Mkok, a sugar board official.
However, Nyando MP Fred Outa opposed it. “The names of Dr Evans Kidero and Ms Rosemary Mkok be removed from the report with a dissenting view by Mr Fred Outa who was of the view that the names remain in the report,” it says.
The report further shows that five sugar companies owe a combined debt of Sh100 billion.
“Nzoia Sugar Company has a debt of Sh37 billion, Miwani Sugar Company (in receivership) Sh28 billion, Muhoroni Sugar Company (in receivership) Sh27 billion, Chemelil Sugar Company Sh5 billion and South Nyanza Sugar Company Sh3 billion.”
The money is owed to the government, suppliers, banks, the Kenya Sugar Board and cane farmers.
The committee refused to consider a draft report by KPMG, an audit firm, on the status of Mumias Sugar, saying it contained a disclaimer about its accuracy. Instead, it asked the sugar company to provide a final KPMG report to the National Assembly.
