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Petitioners opposing the controversial leasing of Mumias Sugar Company Limited yesterday said the administrator Ponangipalli Venkata Ramana Rao was biased and fraudulent in awarding the tender.

Farmers opposing the controversial leasing of the miller said the tender and takeover of the company was done in a span of 24 hours and without the approval of the Competitions Authority of Kenya.

“A decision is made on 21st by Mumias Receiver Manager and then on 22nd, just a day later, is awarded the lease. There was unusual hurry. Why was the hurry to dispose off Mumias property?” asked Kibe Muingai, the Petitioner’s Lawyers.

The farmers further told the court that there was an active court order barring the receiver manager from conducting any lease process at the time Sarai Group was controversially awarded the lease, and which Rao ignored. ‘There was an existing court order that prohibited the lease process from proceeding, yet the Mumias Sugar Receiver Manager ignored the instructions and acted in contempt, therefore the court should declare the process null and void,” said Kibe Muingai.

It was further revealed that Sarai Group only deposited Sh60 million Kenya shillings instead of the Sh120 million it quoted before take over of operations.

Security bond

West Kenya Sugar Company through Senior Counsel Paul Muite argued that West Kenya was to pay Sh900 million up front and then start to pay Sh150 million monthly which would clear the debts faster.

“West Kenya was to deliver Sh900 million up front and additionally Sh500 million as security bond together with Sh150 million per month installment. So how can the receiver manager claim he doubted our capability?” Paul Muite told the court.

In addition, the senior Counsel faulted Rao of claiming that if awarded the Mumias lease, West Kenya Sugar Company would control 50 per cent of the sugar sector.

– Bernice Mbugua