Probe: Sony imported duty free sugar for firm at a fee

Sony Sugar acting MD Bernard Otieno when he appeared before a parliamentary team yesterday. [Boniface Okendo, Standard]

Sony Sugar Company has admitted that it imported sugar on behalf of another firm at an agency fee of Sh82 million.

The company acting Managing Director Bernard Otieno yesterday told joint team probing the alleged contraband sugar that M/s Holbud limited the struggling miller to import 50,500 metric tonnes of sugar worth Sh3.5 billion.

Otieno told the joint Parliamentary Committee of Agriculture and Trade co-chaired by Mandera South MP Adan Ali and his Kieni counterpart Kanini Kega that the company was in need of money to pay cane farmers thus offered to act on behalf of the firm.

“We were looking to get some money. We did not spend anything as they financed everything in the importation of the commodity,” said Otieno

Holbud limited is a sister company to Stuntwave limited, which imported about 13,375 metric tonnes.

West Kenya Sugar chairman Jaswant Rai had told the committee that Sony Sugar was among importers who sold raw sugar at the Coast against Kenya Bureau of Standard’s (KEBS) directive that they process before releasing to the market.

Rai revealed that a ship by the name Illiana transported 38,000 metric tonnes while another vessel christened The Holly brought in 50,767 metric tonnes belonging to Sony Sugar.

The third ship by the name King Coffee, Rai said, brought in 40,000 metric tonnes of bulk brown sugar for Commodity House and Stunt Wave companies.

KEBS on Tuesday told Parliament tests on impounded sugar had revealed that most of the seized sweetener contained harmful substances like yeast, mold with sugar impounded in Ruiri and Eastleigh having traces of copper and lead.

Otieno told the team that the import was never transported to Sony go downs and was instead sold in Mombasa without undergoing reprocessing for human consumption.

The sugar was shipped in by MV The HOLY ship, which was loaded to the ship on October 9, 2017.

But in another twist, documents tabled before the committee showed that the vessel departed the port of Santos, Brazil on November 2, 2017.

Another document, Import Declaration Form (IDF) No. E1712733253, was issued on December 4, 2017 for 25,000 tonnes bulk brown sugar.

The document that allows one to import was approved 56 days after the reported loading date.

“Why did it take 70 days to reach Mombasa on December 19 when ships from Brazil take about 21 days?

Again, the sugar is claimed to have been loaded on October 9, the proforma invoice indicates a different date of October 12,” posed Dagoreti North MP Simba Arati.

The team is expected to table a detailed report next week when the National Assembly resume from recess.

The team’s progress report was roundly trashed by MPs as inconclusive and ridiculous.