A Sh. 295 million State-owned plant has been sitting idle for 28 years since it was purchased. The plant, which is a product of the Nzoia Sugar Company that is owned by the government has been inactive for close to three decades now. The plant was bought for use in sugar crushing.
This has been revealed by the Auditor General, Nancy Gathungu. According to Ms. Gathungu, the plant was acquired in 1993 as part of a production expansion programme that would have seen the sugar miller increase cane processing capacity from 3,000 tonnes a day to 7,000 tonnes.
“The expansion programme was not completed then and the acquired plant has been lying idle since the acquisition and has not generated any income for the company,” Ms. Gathungu said. “Although the management explained that the State Department for public works has given reserve prices for possible disposal of the idle plant, the written report by the ministry was not availed for audit review.”
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The report further noted that Nzoia Sugar had piled chemicals and spares for its machinery amounting to Sh. 137 million. Ms. Gathungu noted that Nzoia Sugar Company had contracted a trader to supply syrup clarification chemicals at Sh. 21 million in March 2016. The items were delivered on February 2017. According to Ms. Gathungu, though, the items have never been used to date.
