Mumias Sugar staff want Sarrai Group out
Workers at the troubled Mumias Sugar now want the government to fast-track the process of landing a new investor for the miller after it failed to pay salaries amounting to Sh2.3 billion.
The over 300 workers through their Union are demanding answers over alleged malpractices by the miller, which is currently being managed by Uganda’s Sarai Group.
Mumias Sugar Company Workers Union Chairman Patrick Mutimba said salaries and other dues owed to workers currently estimated at over Sh2.3 billion have not been paid by Sarai Group despite committing to do so through their official bid document, once it took over operations.
He claimed there has been massive mismanagement of the factory since the new investor, Sarai Group took over through a controversial KCB Receivership deal that has been rocked by numerous Court interventions.
Immediate exit
“Sarrai is not the right entity to manage Mumias factory. We need an investor ready to settle all the debts and revive Mumias. We therefore unanimously as current, former workers and sugarcane farmers reject Sarrai and call for his immediate exit from Mumias,” said Mutimba.
He claimed Sarrai hasn’t shown any signs suggesting to pay the Sh2.3 billion that is owed to workers in arrears.
In addition, the workers are questioning the controversial leasing of the Mumias Sugar Nucleus Land, saying it is under serious threat under the new investor Sarai Group.
The workers allege that Sarai Group has taken more than 8,000 acres of Mumias Nucleus land almost for free.
“An average price of land now is 700,000 multiplied by 8,000 acres is Sh5.6B but Sarrai is getting it almost at no cost,” added Mutimba. Other Concerns raised by the Workers include Statutory deductions being not remitted.
