Mumias Revival Bid: A multi-billion bid by steel tycoon Narendra Raval to revive Mumias Sugar has run into opposition. This is after political leaders from Western Kenya mounted an opposition to the bid claiming there was no public participation and that leaders from the region were not consulted over the proposed lease.
Raising concerns of over lack of public participation, Amani National Congress (ANC) Party Leader Musalia Mudavadi, his Ford Kenya counterpart senator Moses Wetang’ula (Bungoma) and Kakamega senator Cleophas Malalah called for transparency on the leasing process.
“It is important that we have a high level of transparency as KCB bank or the receiver are looking at the possibility of getting investors. We want to emphasize that it is important the process be done smoothly and above board,” said Mudavadi.
Mumias was placed under receivership by KCB Bank after it defaulted on loans amounting to Sh. 500 million. The bank had appointed Ponangipalli Venkata Ramana Rao as the company’s receiver-manager to protect its assets and recover its loans.
A report that appeared in a local daily said that nominated MP Godfrey Osotsi, “had in a letter to Speaker Justin Muturi demanded an explanation as to whether the government, the County Government of Kakamega, shareholders and the Nairobi Stock Exchange were consulted.”
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“Devki Group, which has no experience in the sugar industry, has actively lobbied to win the leasing tender in direct violation of the Public Procurement and Disposal Act,” the MP said in the letter.
Busia Out-growers Company director Lambert Ogochi challenged KCB and receiver manager to come out and make Kenyans understand how they ‘settled’ on Raval. “It is very telling that the purported investor announced himself as the winner. We want KCB to come out together with the receiver manager and tell us how Raval won the tender,” said Ogochi.
