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Mudavadi, Wetangúla raise doubt on Sh62b waiver for state millers

By Moses Nyamori | July 24th 2020

Amani National Congress leader Musalia Mudavadi (pictured above) and his Ford Kenya counterpart Moses Wetang'ula have raised doubt over Sh62 billion waiver for State millers.

In a press statement yesterday, the leaders claimed that there were no relevant instruments to confirm the waiver.

They also questioned why Mumias Sugar Company was still in the hands of a receiver-manager.

Recently, Agriculture Cabinet Secretary Peter Munya announced the waiver of debts for the millers in a bid to attract private investors.

The Sh62 billion owed by the millers include Sh4 billion in unpaid taxes and penalties.

“Government ministers have publicly stated that debts in the sugar industry have been waived in an effort to revive the sugar industry. However, they are not availing documentary evidence with relevant instruments to confirm that debts have actually been cancelled,” said the leaders in a joint statement.

“Secondly, if indeed debts have been cancelled, why is there still a receiver-manager in Mumias Sugar Company,” posed the leaders. They further questioned the role of privatisation commission in the plans to lease State millers as part of efforts to revive the sugar industry.

Suspension of activities

The five factories set be leased are Chemelil, Miwani, Muhoroni, Nzoia and South Nyanza sugar companies. Miwani and Muhoroni factories are already under receivership.

The leaders further raised alarm over the environmental impact of mining activities in Lirhanda Corridor, where large deposits of gold have been found.

The corridor stretches through Kakamega, Vihiga, Kisumu and parts of Siaya counties. 

“Questions abound as to who was granted the mining rights and under what circumstances. Was there an environmental impact assessment report,” posed the leaders.

They claimed that a UK-based company, Acacia, was granted the rights and has subsequently transferred the same to another company based in Tanzania.

At the same time, Mudavadi and Wetang'ula urged all leaders to close ranks and support President Uhuru Kenyatta in the fight against Covid-19.

They announced suspension of all political activities in Western that have continued to expose the locals to the viral disease.

“In the light of this grim scenario and after consultations, we have suspended our outreach programmes in Western,” read the statement.

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