Business News Analysis By Leo Odera Omolo

The Awendo-based multibillion shillings sugar complex, the South Nyanza Sugar Company is in deep crisis following the abrupt resignation of its board of directors chairman Herbert Ojwang.

Ojwang’s resignation in huff citing gross political interferences and frustrations did not come as a surprise because the newspaper had earlier on reported that the pressure was mounting on Ojwang’ to quit so as to pave the way for a cabinet members who hails from the area to recruit his own kith. The man perceived as being fronted by the Minister for Public Services Dalmas Otieno is a Mr Charles |Ogalo who hails from the Minister’s home turf, but reportedly doing business with the SONY sugar via his company which is known as Genetic , which is reportedly handling the workers pension scheme.

The farmers have appealed to Minister uto to avoiding .

The sugar cane farmers within Awendo and its environs have, however, appealed to the Minister for Agriculture William Ruto to shop for a neutral chairman, perhaps someone who hails from outside greater Southern Nyanza region, and even outside Luo-Nyanza, but such a person must be someone with proper CV in which his previous successes in managing a large manufacturing organization of SONY sugar size is cited.

The resignation of Ojwang’ came only within four days after the management had sent the Public Relations Manager Mr. Okongo’ on a compulsory leave. He was actually suspended following numerous allegation that he was peddling rumours via phone SMS thereby causing despondency among the staff , the workers and the farmers.

The suspension could not be immediately confirmed, but a source at the Awendo based factory told this writer that the PR man is actually not in his office, and he has never been there for the last five days or so.

The Awendo based company which is wholly owned by the government had just resumed its production after three weeks stoppage for its annual mechanical maintenance.

SONY is currently experiencing acute shortage of tractors for both ploughing and transportation of the harvested cane. The company, according to insiders could not purchase new fleet of tractors owing to political interference. An amorphous company called Kinda Group is reportedly wanted the company to guarantee a multimillion shillings bank loans so that they could join the firm as partners in the transport sector.

But the management see is the scheme as unrealistic, and insisting that this Kinda company should just seek for loans from the commercial banks, purchase its own tractors and join the company like other transporters. Kinda Group, according to information made available to us is being fronted and favoured by a senior politician in the region. But the pressure is vehemently being resisted by the management of the sugar manufacturing company who are reported to be readily willing to work with any transporters who can raise his own tractors and bring them to SONY without any pre-conditions and string attached, but that such a company must not be linked to any politicians of all ranks

At the same time, sugar cane in Awendo and in all other cane growing zones have heaped a lot of praise to the Managing Director of SONY Sugar company, Mr Paul Odola for having made a concerted efforts which have resulted in the company paying cane farmers nearly all the outstanding payment in arrears of their cane delivered many months ago.

The farmers said they were grateful, because the majority of them being parents were able to dispatched their children back to school after receiving their arrears for March, April and part of May this year. The company said it was making other arrangement to clear the areas for May, June and July within the coming weeks…

The General Secretary of the Kenya National Sugar Cane Farmers Union |Mr Ezra Olodi Okoth told this writer in Kisumu that his members were very happy with the Sony sugar management team for good job.

Mr. Okoth, however, faulted the company’s harvesting system, which he said his members wanted streamlined. There is still what the farmer called “Helicopter Harvesting”, which he said is prone to corruption. It gives the harvesting team free hands of jumping other farms after they received “Kick-backs” The system has left a lot of mature and even over grown cane rooting in the field unharvested and must come to an end.. There must be transparency and accountability in the company harvesting system or else we can move to court, and have this embarrassing system stopped, “said Mr. Okoth angrily.

Sugar cane is a very expensive crops and it takes a long time in the field, therefore it is very unfair for someone in the harvesting department to programme the targeted farms for harvesting selectively. We have heard that some hard pressed farmers have auctioned their cows, got the money and bribed the harvesting team so that the could help in expediting the harvesting of their cane crops. In this respect, the harvest have kept jumping from farm, to farm, leaving behind a lot of mature cane unattended simply because the farmers cannot afford the bribe money.

Okoth appealed to the government to come to the assistance of by extending credit facilities to enable the firm to purchase tractors. This is the biggest headache for SONY, otherwise the company is doing extremely well. It need more tractors to hasten its cane transportation. At the moment the company is operating at half its production capacity owing to acute shortage of tractors..

The Secretary General also appealed to all sugar factories to refund millions of shilling they deducted from the farmers earning as directed by the government The amount, he said is now amounting to close to Kshs 28 million and the arrears should be paid out in full to the farmers.

.The acute shortage of tractors, is not only being experienced by SONY Sugar, but also by other factories like Muhoroni, Chemelil, Kibos, Mumias and Nzxoia therefore the government should work out a system whereby sufficient funds is made available to the sugar company for the purchase of tractors

Ends

leooderaomolo@yahoo.com

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Date: Tue, 16 Sep 2008 08:24:41 -0700 (PDT)
From: Leo Odera Omolo
Subject: SONY SUGAR IN DEEP CRISIS AS CHAIRMAN RESIGNS IN HUFF AND PR MANAGER SUSPENDED