Senator Malala roughed up over Mumias Sugar take over squabble

Saturday, June 5th, 2021 17:19 | By
Kakamega Senator Cleophas Malala was caught up in a squabble over his stand on the take over of Mumias Sugar Company.
Kakamega Senator Cleophas Malala. Photo/Pd
Kakamega Senator Cleophas Malala. PHOTO/COURTESY

Kakamega Senator Cleophas Malala was caught up in a squabble over his stand on the take over of Mumias Sugar Company.

In a video making rounds online, Senator Malala was attending a funeral in Butere Mumias when locals singled him out.

On Friday, steel tycoon Narendra Raval withdrew his bid to revive the operations of Mumias Sugar Company following the reaction from the public, especially Western Kenya leaders.

When the leasing of Mumias Sugar appeared before the Senate, Malala challenged Senate to provide details of the lease.

Before Devki Group of Companies withdrew it's bid to take over Mumias Sugar, Malala asked the Ministry of Agriculture to state the procedure used to sell its stake in the loss making miller.

Other leaders from the region also wanted the government to lay bare the leasing process.

Weighing in on the take over of Mumias Sugar was nominated MP Godfrey Osotsi who faulted Ravals bid arguing the steel billionare had no expereience running the sugar industry.

"Devki Group, which has no experience in the sugar industry, has actively lobbied to win the leasing tender in direct violation of the Public Procurement and Disposal Act," Osotsi said.

Mumias Sugar was placed under receivership by KCB Group in September 2019 after the miller defaulted on Ksh545 million in loans.

Speaking on Thursday, June 3, Amani National Congress (ANC) party leader Musalia Mudavadi said the firm that will take over Mumias Sugar must have the goodwill of the people of Western Kenya.

''KCB Group which placed the company under receivership must be careful how it picks an investor to revive it because the person or firm that comes in will require the goodwill of the leadership, farmers and other stakeholders,'' Musalia said.

In his statement, the steel tycoon however noted that Devki Group of Companies would show interest should the bidding process be conducted in consultation with all stakeholders.

Additional reporting by Denis Lumiti

More on News