The Kenya National Union of Nurses (KNUN) Secretary General, Seth Panyako, now claims that a section of politicians from Western region were involved in underhand deals at the cash strapped Mumias Sugar company, thus contributing to the withdrawal of the investor.
Panyako who spoke to KBC on phone now wants the Directorate of Criminal Investigations and the Ethics and Anti-Corruption Commission to investigate the conduct of the politicians and prosecute those found culpable.
He accused the leaders of bringing the giant sugar company to its knees through corruption, saying it is in the interest of farmers and the people of Western region to revive Mumias Sugar company.
Mumias Sugar has remained financially crippled even after the state pumped in a three billion shillings bailout plan in order to revive its operations.
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The miller was placed under receivership by KCB Group in September 2019 after it failed to clear loans amounting to over half a Billion shillings owed to the bank.
Over the last couple of weeks, potential investors have been conducting surveys at the collapsed Sugar factory, including carrying out a cane census to establish raw material availability.
Earlier on Friday, Devki Group of Companies Chairman Dr Narendra Raval announced that the firm had withdrawn from the leasing bid that would have resulted to the firm taking over the troubled millers in a deal worth Kshs. 5 billion.
“Given the ongoing public interest which the matter has attracted and the call for publicly run bidding exercise, we have found it worthwhile to take out our application. We will however express interest, should the exercise be conducted in consultation with all the stakeholders,” said Dr Raval.
Dr Raval said the multi-billion steel firm had expressed interest in reviving the sugar miller currently in receivership following an invitation by the Receiver Manager.
He later said he is willing to return to the Mumias Sugar (In Receivership) leasing bid from July 1st 2021 only if various stakeholders are involved in the deal.
“I bid for Mumias with a good intention of reviving it and improving the livelihood of the farmers and the local community. If the farmers, the leaders and the receiver want me, I am willing to start it by July 1,” he said.
Dr Raval who spoke to KBC Digital at his Ruiru office on Friday said that he had planned to lease Mumias Sugar Company for 20 years.
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