BAN ON SUGAR IMPORT MOST WELCOMED BY SUGARCANE FARMERS BUT GRAFT STLL HURT THE INDUSTRY.
 
By Leo Odera Omolo
 
THE stern measure taken by the government in conceling the licenses of sugar importers and exporters has been hailed as a bold and appropriate step in the right direction aimed at resuscitating the hailing sugar industry.
 
Farmers in the Nyanza Sugar Belt have also appealed to the Minister for Agriculture William Ruto to instruct the Kenya Sugar Board to establish one Central Procurement Board that will handle all the procurement matters for the  public owned Sugar companies
 
Public owned Sugar companies are Nzoia, Muhoroni, Miwani, Chemelil and SONY sugar Company Limited based at Awendo in Rongo district.
 
This measure, according to the stakeholders, will minimize corruption and massivelooting of the resources in the various factories. It will also bring to an end the various scams involving procurement related businesses.
 
Sugarcane farmers wanted the business of procurement of machineries and spares fracture every other heavy earth moving machinery to be placed under one board appointed by the KSB.
 
Millions of shillings are known to have been lost by factories by rogue CEO’s working in cohort within scrupulous suppliers. These people, according to a source in the industry have been minting millions of shillings especially during the annual maintenance of the cane crushing mills. In some cases, the already purchase spares are known to being recycled after being hidden, repainted and re-sold to the same factories it was stolen as a new one.
 
Expansions of the cane crushing machines is another area which is full of deceitful business transactions in the sugar industry. It is used as conduit for siphoning money from the sugar factories by unpatriotic CEOs and their accomplices.
 
The Ministry has also been challenged  to launch a thorough investigation to claims and allegations that a top manager working in cohort with some unscrupulous traders in Kisii town were recently allegedly suspected to have been involved in the scam of printing gunny bags and packaging packets of SONY sugar Company, This cartel is said to have used the SONY packaging materials and the illegally printed packets and bug for the purpose of re=packaging counterfeit sugar, These people are alleged to have been using such materials in packaging White Sugar obtained from foreign sources[r the consignments on transist to other African countries.
A source within the Awendo based factory indicated that the alleged scam had already been reported to the government and the Kenya Revenue Authority for investigations..
 
The dreadful rumors goes that a popular store in Kisii town is alleged to have been involved in the scam which also involved the illegal printing of the same packaging materials, which suspected to have been filled with imported sugar on transit destined to other African countries.
 
The scam involved taking of documents and the printing of packaging materials without the knowledge nor the authority of the company. And now the farmers want the top officials who us alleged to have been involved in the scam  removed from the services of the management of the Company.
 
KSB is also advised to device the new way of ensuring the department of weight and measures in the Ministry of Trade and Commerce makes regular inspection of weight bridges attached to the sugar factories. where farmers are allegedly being fleeced of millions of shillings through rackets in which the factories are using defective weighbridges.
 
Rumors persist that some factories are fleecing  farmers by way of cheating through faulty weigh and measures. The load of 8 tones or raw cane at times end up recording only 4 tonnes or that his cane weighed only 6 tones. In this way farmers are known to be losing millions of shillings to the corrupt factory bosses, who are minting millions of shillings by using defective weight bridges. Such scam was reportedly discovered in SONY sugar Company some years ago. But the situation was only rectified after the cane out growers had already lost close to 200 millions to unpatriotic traders who had hatched the scam.
 
In this kind of scam, some collaborating farmers had their harvested cane given extra tones of cane which was stolen from unsuspecting farmers and the clerks at the weight bridges shared the loot with the locals and few accomplices.wheeler-dealers . Some unsuspecting people earned more money than the amount they were expecting to be paid by the company, but they later got rude shock when they were confronted by thieving clerks demanding for their share of the loot.

Ends

Leooderaomolo
 
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Date:  Mon, 7 Jul 2008 07:41:53 -0700 (PDT)
From:  Leo Odera Omolo
Subject:  BAN ON SUGAR IMPORT MOST WELCOMED BY SUGARCANE FARMERS BUT GRAFT STLL HURT THE INDUSTRY
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HIGH FUEL COST PUSHES TAZARA RAILWAY CHARGES UP BY 30 PER CENT.
             
By Leo Odera Omolo.
 
REPORTS emerging from Dar es Salaam say the Tanzania-Zambia Railway Authority (Tazara) has announced to its customers the  decision to adjust upwards the current tariffs.
 
The upward increase in passenger and parcels rates was to be implemented from July 1st 2008 with travelers being asked to re-confirm their booking for exact fares to avoid any disappointment.
 
Fares on both the Tanzara Express and Ordinary passenger trains have gone up by 30 % while parcels and luggage rates on the same trains have gone up by 30%.
 
Passengers traveling from Dar es Salaam to Kapiri Mposhi in Zambia using Tazara Express on first class will now pay Tshs. 72,600 (USD 72) while previously the fare was Tshs. 60,500 (USD 60).
 
Travelers to Makambuko ( Iringa) from Dar es Salaam used to pay Tshs. 24,200 (USD 24) but they will now pay Tshs. 29,000(USD 29).
 
The Tazara railway (previously christened UHURU railway line. It was constructed with Chinese funding during the UDI government of rebellious white settlers in the then Rhodesia (now Zimbabwe.) At the time of UDI government headed by the white Prime minister, the late Ian Smith, it was meant to assist the landlocked Zambia to export its copper and other farm products.
 
It crosses through Makambuko, Mbeya and Tunduma on the border of Tanzania and Zambia to the final station at Kapiri Mposhi in Zambia.
 
The railway provides services mainly on one line that runs from Dar es Salaam in Tanzania to Kambrili in Zambia.
 
Managing Director of Tazara Mr. Clement Subulwa Mwinga was recently quoted as saying that the upward fare adjustment was normal and in line with the company policy through which they have an annual review of the corporation’s tariffs.
 
He said the rates were still competitive despite the high operational costs that the Company has been experiencing. The increase, he added, was meant to sustain services provided above cost especially the wage bill, which he said was as a big domestic cost that they had to factor in.
 
According to the MD, the current high global fuel prices had partly led to the increase in fares considering that Tazara trains use Diesel which is currently selling at USD 143m per barrel.
 
In addition, Mr. Mwiya said, the weakening of the American Dollar has impacted negatively on Tazara’s operations. The corporation is currently rehabilitating 18 main locomotives, doing track maintenance and improving equipment with support from its annual budget in order to offer quality and efficient service.
 
“we operate with both the dollar and shilling and the exchange rate has fallen since last year from Tshs. 1,270 (USD 1.27) to Tshs. 1,150 (USD 1.15). Since the wages bill is in local currency, we need more dollars to keep up with current expenditure,” said the MD.
 
He further revealed that Tazara was also upgrading its facilities at a cost of USD 10 million to improve customer service.
 
Ends
leooderaomolo@yahoo,com.
 
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Subject: HIGH FUEL COST PUSHES TAZARA RAILWAY CHARGES UP BY 30 PER CENT.