MUHORONI SUGAR CANE FARMERS IN THREAT TO BOYCOTT DELIVERY OF RAW MATERIALS TO THE FACTORY WITH EFFECT FROM 1ST MARCH AND ACCUSED RAILA ODING OF GROSS INTERFERENCE IN RECEIVERS APPOINTMENT

Report By Leo Odera Omolo.

Sugar cane farmers in Nyando cane growing zones have resolved to stop row cane delivery to the Muoroni Sugar Factory with effort from March 1st 2009 unless the government revoke the contracts of the two joint receiver managers.

The farmers want the KENYA Sugar Board allowed to pick up the most suitable receiver managers, and not a relative of Raila Odinga, who they accused of incompetence, inefficiency and non-performing

The resolution to this effect unanimously passed at the well attended meeting of farmers held at KIipsitet market in Ainamoi constituency Kericho District last Saturday.

Muhoroni sugar factory is situated in Nyando District but it is also catering for cane farmers from other cane growing zones extended to Ainamoi and Belgut constituencies in Kericho, Koru, Fort Tennan and part of south Nandi Districts.

Muhoroni Sugar Factory is currently under the official receivership and the farmers are protesting against the recent the renewal of the contracts of the joint receiver manager Eng. Martin Owiti and Mr. Kipng’etich Bett

The two have served as the joint receiver managers for both Muhoroni and Miwani Sugar Companies, for the last four years, but the farmers have accused then for failing to turn around the ailing sugar company.

In a letter dated February 17,2009 and addressed to the Public Pocurement Apeal Board of Receivers for both Muhoroni are Miwani Sugar Companies and copied to the Kenya Anti corruption commission (KASS) the farmers bitterly complained of what they farmed as the gross interference in the award are subsequent appointment of receiver manager for both Muhororni and Miwani Sugar Companies.

The letter is signed by Jeremiah Kitur Chairman of Nandi Sugar belt co-operative Union ltd Mr. Bill Adero a director of Muhoroni sugar

Outgrowers Company Ltd, Eng Gilbert Ondis a farmer in Miwani area and Mr, Samuel Korir representative of Soin Cane growing zone in Kericho..
The letter states as follows; “On 23 Octo0ber 2008 the Kenya Sugar Board(KSB) had advertised and called for application the post of receiver managers for both Muhoroni and Miwani sugar companies in anticipation of the expiry of the terms of the two joint official receiver managers on FEBRUARY 9, 2009.

On 2ist January 2009, the first interview which was scheduled to take place following the short listing of five applicants was abruptly cancelled and called off by the KSB at the last minute as candidates waited for what is believed to have been a ”gross interference by the Office of the Prime Minister Raila Odinga.

Subsequently the matter came up as a question in Parliament, which was deferred for a later date in the future clarification..

Later on another interview was called and held on 10th FEBRUAY 2009 in which the board directors sat and interviewed a number of candidates. It was then resolved that the current receiver managers be replaced.

The letter went on “As farmers we believe that the decision of the KSB take into account the poor performance of Messrs Belt and Owiti as joint receiver managers in the following area.

Payment for the cane delivered by the farmers is in arrears of 3 months. Accidentally burn canes is being paid for at 2000 per ton instead at KSHS.2500 per ton.

There is widespread inefficiency at the Muhoroni Sugar factory. For example it takes three to four days for a tractor to off load its cargo of raw cane from the farms at the company’s cane yard.

The letter further stated that there is shameless selective harvesting of cane in favor of the members of managerial staff and workers in stead of cane from the field owned by the out grower farmers.
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It further accused the joint receiver managers for the misuse of the money from the Sugar Development Fund(SDF which was allocated for boiler No 4 amounting to to abut Kshs 250 million) and alleged that the same boiler is non-performing as at per present time. It is dead and not working despite having consumed millions.

Farmers money was used in the Purchase an overhead crane at the factory, which currently not performing as way expected.

The Suagr recovery extracted from the raw is at present below than the required standard which means the factory is not efficient and need overhauling and major repair
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In spite of all the foregoing ,we understand that the Prime Minister office has directed the Permanent Secretary in the Ministry of Agriculture to extend the tenure of the current non performing receiver manager in total disregard for the resolution of the KSB that they be replaced.

In view of the above and having a direct interest in the operation of the two sugar companies the farmer of Muhoroni and Miwani Sugar companies now appeal to your good office as follows;

1. The resolution of the KCB in respect to the appointment of new receiver manager be uphold so that the farmer can benefit from their sweat
2. That the Prime Minister Raila Odinga be restrained from gross interferences in the procurement process. “We understand the Spectre International, a company associated with the Odinga family was a bidder for the purchase of Miwani Sugar company limited.(currently under the official receivership})and that one of the rejected receiver managers that Mr. Odinga is insisting on being retained is believed to be a member of his family from Sakwa Bondo.

By copy of this letter, we wish to bring this matter to the attention of all relevant arms of government for appropriate action.

Bur contacted on of the joint receiver managers Eng Martn Owiti scoffed at the farmers threat of boycotting can delivery for the factory sugar the matter use a government decision.

He accused the directors of one of the sugar factories within the locality of having spent a fortune trying hard to destabilize Muhoroni Sugar Company by sponsoring all these sorts of unwarranted agitation, The factory in question is also situated within the Nyando sugarbelt .Its bosses are corruptively dishing out money to undermine Muhoroni suagr Company.

Document available to us indicated that the KSB board had selected the firm of Enmg J Pete and B. Bosire to be hired at KSHS 1.8million per month instead of Eng M.Owiti and K .Bett for KSHS2 per month, Others companies which had been short listed include W P. Kahi who asked for Kshs.700,000 per month. Wachira KSHS.850,000 per month and Mwangi and associates who asked for Kshs 400,00 per month.

End
leooderaomolo@yahoo.com

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Date: Mon, 23 Feb 2009 05:51:32 -0800 [07:51:32 AM CST]
From: Leo Odera Omolo
Subject: MUHORONI SUGAR CANE FARMERS IN THREAT TO BOYCOTT DELIVERY OF RAW MATERIALS TO THE FACTORY WITH EFFECT FROM 1ST MARCH AND ACCUSED RAILA ODING OF GROSS INTERFERENCE IN RECEIVERS APPOINTMENT

One thought on “MUHORONI SUGAR CANE FARMERS IN THREAT TO BOYCOTT DELIVERY OF RAW MATERIALS TO THE FACTORY WITH EFFECT FROM 1ST MARCH AND ACCUSED RAILA ODING OF GROSS INTERFERENCE IN RECEIVERS APPOINTMENT

  1. L kosgei

    The sugar companies will die a natural death soon.

    The government is proctecting death industries by having very high tariffs on imported sugar 120%

    Comesa sugar should costs 40kshs in kenya.why should 40miljon kenyans pay more ? For the money to endupp inthe corrupt sugar companies.

    Those who grow sugar should think of growing other crops

    Malawi can do much better than Kenya,what a shame.”They want the industries to die then they can buy them cheap” God will only save Kenya.

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