Sports Cabinet Secretary Rashid Echesa has accused Amani National Congress (ANC) party leader, Musalia Mudavadi, for the fall of Mumias Sugar Company saying he is the reason why the firms revival failed.
Echesa faulted Musalia’s opposition to the revival plans of the company as fronted by Kakamega county Governor Wycliffe Oparanya and instead wanted a judicial commission to probe failure of the firm.
Speaking in Navakholo, on Saturday, December 29, Echesa said the concerns of residents were to have their delayed payments released and the commission was of no interest to them.
“We recently carried out investigations on those who have led to failure of the company. We came across a company by the name Fast Assurance which has been paid over 380 million since 2014 up to 2017,” said Echesa.
The CS said they were surprised that the company had been receiving the money all along but payment for residents who supplied cane could not be paid.
“We probed the company and found out director number one of Fast Assurance is Musalia Mudavadi who is now telling us to wait for judicial commission of inquiry. I want to ask Musalia Mudavadi if the company is not his, he should come out and reject it,” he added.
The company has not been in operation for almost a year despite government pumping in millions of money for its revival. Residents have faulted management of the company claiming the it has been rendered nonoperational intentionally by cartels who want to have it sold to private investors.
The company now owes over KSh 10 billion to banks, KSh 1.2 billion to Kenya Power, KSh 80 million to transporters, KSh 15 million, KSh 10 million to packaging material suppliers and chemical suppliers respectively.