BY JEFF OTIENO

A bid by a Kisumu based wealthy tycoon Padhal Harjeet Singh & sons to take over the ownership of the controversial and moribund Miwani Sugar Company Limited has hit a snag following a terse environmental assessment test report which has officially been disclosed.

In a letter dated 7th January 2011 ref Nema/EIA/5/2/614 the environmental authority rejects the bid by the transporter tycoon on grounds that the land in question is under contention.

The letter reads in part, “it’s important to note that the environmental assessment license is issued for a specific plot and hence the plot number has to be clearly stated and a copy of title deed attached as a proof of ownership.”

“The authority is therefore unable to process the environmental impact assessment license for the proposal development until the issue of land ownership is resolved and proof of the same submitted to the authority,” the letter continues.

It concludes in part by warning the investor that failure to respond within a period of 60 days for the date of the receipt of the same he will be expected to reapply.

“Kindly note that environmental impact assessment processing time stops running until the above issues are addressed,” the letter written by BM Langwen for the Director General concludes.

Padhal Harjeet and sons had budgeted Kshs. 11 million to set up the plant and were expected to crush 3,000 tonnes of cane per day.

They also intend to produce 23 mega watts of electricity with 18 megawatts being channeled to the national grid and the balance for its internal consumption.

The move by Padhal and sons has elicited outrage from local farmers who say the local transporter is using his high powered connections particularly from the Prime Ministers office to influence a take over through hook or crook yet they have no capacity or expertise on sugar.

The enraged farmers further took issue with a galaxy of consultants who gave clear bill of health to the transport tycoon without considering that there are contentious issues bedeviling the plant.

Padhal and sons were recently ejected from Chemelil Sugar for doing transport on alleged grounds that they were involved in fictitious dealings which were injurious to the sugar miller.

Miwani Sugar issue has braced endless court battles and at one time the said Padhal family were being accused by a clique of farmers for hiring goons to crowd court corridors in a bid to create imaginary impressions to the jurists.

At one time early last year the tycoon had to scamper for safety when the marauding goons demanded that their heckling fee along the court corridors be hiked thundering that they had under estimated the gigantic task involved.

Majority of farmers in that Muhoroni zone have of late sighed with relief following a vibrant policy by the Kibos Sugar and allied workers to pay farmers weekly; a move which has also impacted negatively to rival millers who now view them as “populist”.

It is interesting and imperative to note that the contentious miller is hardly 20 kilometers from Kibos Sugar and keen sugar industry players are watching with batted breath how the regulator the Kenya Sugar Board will react putting into consideration the sugar act.

END