By Leo Odera Omolo, leooderaomolo@yahoo.com
API/APN in Kisumu, Kenya
The Agriculture Minister Kipruto Arap Kirwa has remained tight-lipped despite of the on-going power struggles and seemingly endless squabbles in the lucrative sugar industry.
The sugar sub-sector of the economy has remained a thorny object in the flesh of the Kibaki administration ever since it came to power on January 2nd 2003.
Effort to have the industry resuscitated has always hit the rocks due to manipulation and corruptive practices by those charged with the responsibility of managing the country 7 functioning sugar manufacturing factories.
The permanently hailing industry has been christened ‘‘the milking cow’’ in Kenya’s industrial sector.
Top CEO’s in the sugar industry have always deployed unpatriotic managerial scams using pseudo businessmen and brokers as conduits for massive looting the meager resources that has been availed by the government in its declared policy of rehabilitating the industry.
The sugar industry witnessed the worst type of corruption during Minister Kirwa’s tenure at the helm of the Agriculture House. The Minister who prior to his appointment to the cabinet was leading a modest life as a backbencher MP in the 7th and 8th parliament is today one of the wealthiest politicians in the Kibaki administration.
At one time Kirwa had come under focus by the Kenya Anti-corruption Commissioner (KACC) but the investigations were called off following alleged ‘’Instruction from above!
In the last five years one of the sugar factories in which the government has the controlling shares has had five CEO’s. This is an average of one MD or CEO every year since 2003.
Sony Sugar Company, which is based in Awendo town in the newly created Rongo district, has had five different CEO’s ever since 2003, but each of these men had left the company in huff following allegation of massive corruption with exception of Eng. Martin Owiti whose departure was politically motivated.
Another sugar factory, Chemelil Sugar Company is said to be limping and semi insolvent. Kirwa has ignored all the cries of local farmers who have pleaded with him to remove the MD Prof Julius Omondi Nyabundi whose managerial style leaves a lot to be desired.
Both Miwani and Muhoroni went burst in 2001 and all the effort to have the two companies resuscitated has hit the rock. The two companies were placed under what the then Agriculture Minister Chris M. Obure termed as ‘’protective receivership’’ How far their assets have not been protected against vandalism is a matter of public conjecture.
And only Mumias Sugar Company, which is under private ownership, has been turning out huge profits annually. But this firm is not free from criticism of corruption.
Just recently thousands tones of imported sugar, which were found by the police and the KRA to have been neatly packed on gunny bags, and packets bearing Mumias Sugar Company official logo and marks were discovered within the Mombasa port.
Mumias Sugar denied the knowledge of his consignment and pleaded with the KRA to have the sugar destroyed saying they were innocent.
But rumours making the round say that people suspected to be behind the scam are those alleged ‘’power brokers’’ who are closely associated with Kirwa and some CEO’s in the sugar industry.
These wheeler-dealers are the most trusted friends of the CEO’s. They are known to be living like kings and yet they are doing no credibly jobs to warrant such status. Some of them are reliable learnt to be political surrogate of Kirwa.
How the Kenya Sugar Board had recently released close to Ksh. 500 million and paid this colossal amount of money to a private firm owned by a Asian family, which had moved to court and filed a legal suit against the controversial business tycoon Mr. Ketan Somaia who at one time was a majority shareholder in Miwani sugar millsdefeats everyone.
The firm had sued Ketan Somaia for a much lesser amount, but got hundreds of millions in excess payment. Kirwa or power brokers and unpatriotic top KSB officials, are suspected to have benefited from the loot.
The chief Executive of the KSB Mr. Andrew Otieno has been suspended. His suspension came about immediately after the opening of tenders for the sale of the same Miwani and Muhoroni sugar companies.
In the surface of it, newspaper reported that Mr. Otieno was suspended after he ignored an order from the Permanent Secretary in the Ministry of Agriculture Dr. Romano Kiome to suspend the opening of the tender documents.
However, the suspension reason was not made specifically clear to the public. It shrouded in secrecy. Otieno’s style of management at the helm of KSB has been shrouded with a lot of controversies, numerous claims and allegations of massive corruption.
The current suspension is the second he has earned in less than three years time. Is he an indispensible person?
Must he remain the KSB CEO and yet his managerial style remains a mystery? Can the government find another suitable replacement?
How can the public trust the deal of sales of Miwani and Muhoroni if questionable men with questionable motives are the one entrusted with the responsibility of brokering such deals?
Farmers in Nyanza, especially in Kano plains in Nyando district want the sale deal suspended until such a time when the KSB will be under the guidance of a new CEO with untainted name or else the government should sensitize the farmers to buy and own the two industries instead of foreign and local investors.
Published by API/APN africanpress@chello.no tle +47 932 99 739 or +47 6300 2525
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