MP differs with Raila over role of State in Mumias Sugar’s fate

Coalition for Reforms and Democracy (CORD) leader Raila Odinga over the weekend clashed with Navakholo MP Emmanuel Wangwe over the Government's role in reviving Mumias Sugar Company.

The former premier also differed with Mr Wangwe on how the Government should curb the rising insecurity in the country.

"The efforts by the Government to revive Mumias are politically inclined. Unless it allows for full privatisation of the company, all efforts are in vain. We have a lot of inefficiencies in parastatals in this country which must be dealt with," Raila said.

But Wangwe said the Government is a major shareholder in the company and should give the company more funds to revive it.

He said the Government is fully involved in the company's affairs as a shareholder and not for political gains.

"Mumias is already a private company. The Government like any other major shareholder should be involved in reviving the company by allocating it more funds," said Wangwe.

The Government is among major shareholders at the company with 20 per cent shares, Standard Chartered Bank, Kenya Commercial Bank and Jubilee Insurance have 2.31, 1.72 and 1.46 per cent shareholding respectively.

Other investors via the National Stock Exchange hold the remaining 70 per cent shares.

Speaking at Ingotse in Navakholo, Raila said the current efforts by the Government to revive the country's biggest sugar miller are far-fetched.

He was accompanied by Kakamega Governor Wycliffe Oparanya and Butere MP Andrew Toboso,

Raila dismissed the Government's plans to allocate funds to the company saying it should stop meddling with the company's affairs.

Declare position

"The Government should stop shouting every day on how it is has allocated funds to revive the company. It is using the company to gain political mileage," he said.

Wangwe dismissed Raila's sentiments saying the sugar company is faced with a financial crisis brought about by a few individuals who looted its money.

He asked Raila to declare his position on the graft that crippled the company saying some of his (Raila's) close allies were involved in the looting of the company.

"Mumias is suffering due to a serious financial crisis. Whether the company is privatised or not, it still needs funds to pay debts owed to farmers, banks and other creditors," said Wangwe.

"The financial crisis at Mumias was caused by few individuals who stole from the company leaving it struggling for its survival, some of these people who looted the company are Raila's friends," he said.

Wangwe asked the CORD leader to stand with the people of western region to push the Government to allocate more funds to the company.

"He should be pushing for more funds," he said.