Ruto on the spot over maize scandal

Agriculture minister William Ruto appointed the managing director of one of the country’s largest millers to the board of trustees of the cereals board, the Nation can reveal.

Mohammed Islam Ali, the boss of Mombasa Maize Millers was appointed to the National Cereals and Produce Board in changes in which the minister sacked and replaced the entire board.

Mombasa Maize millers and its associated companies were allocated nearly one million bags of maize during the current crisis, making it one of the board’s biggest customers.

In law, the board should include two persons who are maize growers, one person who is a wheat grower a representative of consumers interests and another representing millers.

Other members are the Permanent Secretaries in the Ministries of Agriculture, Finance, Office of the President and Special Programmes. The Kenya Grain Growers Co-operative Union Limited also nominates one person to the Board.

NCPB determines the producer price of maize by intervening to buy on behalf of the government, in times of surplus harvest and selling when supply is low.

Mr Ali said he was not the first miller to be on the board. “The regulations of NCPB allow board of directors to be drawn from farmers and millers,” he said. “The membership rotates between farmers and millers and there is nothing new in the appointment.”

No conflict

He said there was no conflict of interest, saying that procurement issues were dealt with by a Cabinet committee bringing together the ministries of agriculture, special programmes and finance. “We are millers, we are not traders of maize,” he said.

The shareholders of Mombasa Maize Millers are listed as Ahmed Bin Ali, Ali Islam Ali and Mohammed Islam Ali. The company also owns Kitale Industrial and recently acquired two rivals to widen its share in a market where consumer prices for maize flour are going through the roof.

Mombasa Millers took over Milly Grain Millers, associated with Mombasa businessman Rashid Sajjad, while its affiliate Coast Maize Millers gained control of  Mazeina Millers, another Coast-based firm. Two operators were said to have bowed out citing high production costs. Milly Grain Millers manufacture Tima, Safi and Nyota brands as well as Atta Mark 1 and Bakers Flour. Nyota and Safi are the company’s most popular brands.

The company was reported to be processing 100 tonnes of maize flour and another 100 tonnes of wheat flour, every day and employs 140, permanent workers. Mombasa Maize Millers, Kitale Industries, Buzken Industries and Export Trading were some of the main beneficiaries of allocations for maize.

Allocated

Mombasa Maize Millers were allocated 696.249 bags, Kitale Industries, 144,000 bags and Buzken Industries 151,081 bags. Deputy Speaker Farah Maalim on Thursday upheld documents tabled in parliament by Ikolomani MP Bonny Khalwale on maize allocations to millers and other traders.

But he threw out documents which were not on the board’s letterhead, including an email alleged to be from a company associated with Mr Ruto and an Indian company for the purchase of gunny bags.

On Wednesday, Mr Ruto explained to the House that he owned shares in African Merchant Assurance (Amaco) in the same way he did in Safaricom, Kenyan Airways or any other company. Returns at the Registrar of companies show Mr Ruto in his own name owns 128,000 shares in Amaco.

Another 200,000 shares are owned by Joubert and Borman Ltd a company in which the minister is a shareholder together one Silas Kibet Simatwo. Mr Simatwo owns 32,000 shares in his own name.

Controversies, which have sparked questions about Mr Ruto’s stewardship of the grain sector, boiled over last November when the price of maize flour, the national staple, hit Sh125 for a two kilo packet.

In response, Mr Ruto ordered the trustees of the emergency stores to see to it that the issue was sorted out. A Cabinet committee had a discussion with the millers and came up with a scheme to subsidise flour. The scheme, to sell flour at Sh52 to the poor and Sh72 to the rest, has largely failed.

The new directors are Dr Adrian Wekulo Mukhebi, Mr Elias Barre Shill, Ms Rozaah Akinyi Buyu, Mr Ali and Mr Timothy Kipkorir Busienei. They replace Mr James Gitutho Njendu, Mrs Grace Wanjiku Maina, Mr Francis Wanyonyi, Mr Bernard Maingi Killu and Ms Beatrice King’ori.

On Thursday night, Mr Ruto said there was nothing sinister in Mr Ali’s appointment adding that his critics are trying to fish “in the desert.”“You read the NCPB Act. The Act is very clear and says who the board member can be,” he said.

The Eldoret North MP said he appointed Mr Ali in his capacity as a miller. He said millers have their own association which nominated Mr Ali. He said the Cereal Growers Association is represented by Mr Busienei.