Uhuru’s plan to recover stolen Mumias millions

Mumias, Kenya: President Uhuru Kenyatta wants former managers who looted Mumias Sugar Company Limited charged in court and forced to return the money they stole.

He spoke in Mumias town after handing over a symbolic Sh1 billion cheque representing the State’s bailout cash for the sugar miller to the chairman Dan Ameyo and Kakamega Governor Wycliffe Oparanya at the Mumias Sports Complex.

President Kenyatta said the Ethics and Anti-Corruption Commission (EACC) and the Office of the Director of Public Prosecutions (DPP) are independent institutions with the freedom to fully implement the recommendations in an audit of Mumias Sugar by business services firm KPMG that implicated former managers in the fraud.

He said those implicated should have their ill-gotten wealth seized to recover the money and slammed leaders from Western whom he said politicised the State bailout.

"The biggest problem that has been affecting the company is not poor cane production, but those who were in management had their own interests and not for the benefit of farmers," he said yesterday.

Earlier, the President had toured the factory, accompanied by his deputy William Ruto and local leaders, including Opposition legislators who had been critical of the bailout.

"EACC and DPP offices are constitutionally mandated to handle the KPMG report and ensure those behind the collapse of Mumias Sugar are apprehended and even their properties, including houses sold, to recover funds looted from Mumias Sugar," said the Head of State.

Stern warning

Earlier in Kakamega town, President Kenyatta had faulted the Opposition for alleging that Jubilee is using the National Youth Service (NYS) as a militia group.

"As youths you should not accept to be misled to cause chaos in the country. The Government is committed to helping all youths by empowering them economically. The Jubilee government will work with all Kenyans to ensure the country is developed," Uhuru said on his way to Mumias.

Ruto told the Opposition to stop referring to youths as goons or militia.

"Youths are not goons, criminals or militia. Political leaders should not misuse them for their personal gains. The Jubilee government is determined to empower all youths through NYS," said Ruto.

In Mumias, President Kenyatta said sugarcane farmers should be given priority before the maintenance of the factory is carried out and other suppliers are paid.

"We are here to see that Mumias Sugar gets back to its previous performance because the local economy and that of the country has been affected negatively by its current problems," stressed Uhuru.

The President issued a stern warning to the current management of Mumias, saying it must account for every penny.

"In the financial year of 2013-2014, National Treasury allocated Sh800 million to the company. We want to know, where did that money go? Now we are putting down Sh1 billion so we have put you on notice," he said.

"We have given Mumias Sugar management a few months to give us a plan on how you intend to rehabilitate the company, and make it profitable. Failure to adhere to that, we shall send you home."

Retired Westlands MP Fred Gumo asked the President to also ensure Pan Paper factory is revived "and the rest shall follow".

"We say in Luhya that what the son does, even the dead are able to see. Continue where your dad left and if you ensure our factories are revived, even elections will be smooth," said Gumo who told the President and his deputy "kaa ngumu" (be firm) amid laughter from the crowd.

Ruto said Mumias Sugar is not the only investment the Government intends for the region.

"The Government has allocated Sh800 million that will be used for the establishment of technical training institutes in Mumias, Likuyani and Navakholo. The Government has also planned to tarmac a number of roads in the region including Butere-Sidindi road, Kakamega, Navakholo-Musikoma road and improve Sigalagala, Shamberere and Bushiangala polytechnics," he said.

Amani Coalition leader Musalia Mudavadi said Mumias Sugar must stay afloat at any cost.

"Over 53 per cent of the sugar consumed in the country comes from Mumias Sugar. That implies that MSC contributes to 53 per cent of the Sugar Development Levy. That money should be ploughed back to Mumias," said Mudavadi.

Mudavadi asked the Government to address the issue of cheap sugar imports from Common Market for Eastern and Southern Africa countries, saying the local sugar industry should be protected.

Senate Minority Leader Moses Wetang'ula emphasised the need to set aside more funds for cane development.

"We ask for special allocation for seed and labour. We want the MPs to change the law that farmers be paid before the cane leaves their farms," he said.

Oparanya said Mumias has a debt of over Sh12 billion which is more than the cash allocated to Kakamega County.

"If we don't have a plan on how to get this money, we will continue the way we are today. We need a permanent solution because Mumias is the pillar of Western economy,'' said Oparanya.

Bungoma Governor Kenneth Lusaka said he expects the President to also visit the county and issue a charter to Kibabii University and reveal more on how Pan-Paper would be revived.

Central Organisation of Trade Unions Secretary General Francis Atwoli said corruption is the biggest hindrance to development and reiterated those who were behind Mumias' collapse should be face the law. Atwoli also wants the Government to allow people to buy shares in the National Bank of Kenya.

"Please take care of the National Bank, we don't want strategic partners. We want people to buy shares and own national bank and avoid being like Tanzanians who lack a bank of their own," said Atwoli.

Kakamega Senator Boni Khalwale lashed out at MPs for failure to lobby to have the debts of Mumias waived and money allocated for it in the 2015/2016 budget.

"We are not here because of politics, but to see Kenyans get development," said Khalwale.

The senator asked Treasury Cabinet Secretary Henry Rotich, who was present along with his Industrialisation counterpart Adan Mohamed, to consider Mumias in the supplementary budget.

Crowds boo

Busia Senator Amos Wako said, "I participated in the drafting of a legal paper that established the two factories. I urge you to continue with the legacy of your father to ensure that the two factories are revived," said the former Attorney General.

ODM Secretary General Ababu Namwamba said there would be no political differences where matters of development are concerned in the region.

"We thank the President for the one billion, but we need more. We are matured politically and we are in a position to differentiate empty and development politics," he said adding that the move to invite the President should not be misconstrued to imply he has left ODM.

John Bunyasi, the chairperson of the Western Parliamentary Caucus, welcomed the President's gesture. Water Cabinet Secretary designate Eugene Wamalwa said the company's dwindling fortunes had affected over 500,000 families who depend on it.

"Leaders from across the political divide are here. This is a good move," said Wamalwa.

There was drama when the crowds booed Kakamega Woman Representative Rachel Ameso, forcing her to cut short her speech.

Other leaders in attendance included MPs Boniface Otsiula, Mary Emase, Malulu Injendi, Ayub Savula, Alfred Agoi and Paul Otuoma.