Kakamega Senator Cleophas Malala has slammed Deputy President(DP) William Ruto over his remarks regarding the takeover of Mumias Sugar Company.
On Friday, during the launch of the Wanga Technical and Vocational College in Mumias East, Kakamega County, the DP said the government will surrender 20 per cent of its shares in the ailing company to Kakamega county.
Senator Malala on Saturday dismissed the remarks saying the government does not have any shares with the company since it is under receivership.
“Mumias Sugar Company was delisted in the Nairobi Stock Market Exchange by Capital Markets Authority. And that only means no one has shares including the government since the company is under receivership.
Dont come to our people who need help and begin lying to them that you have the powers to let out the 20 per cent government shares when you know very well Mumias Sugar company has been delisted,” said Malala.
The Senator went ahead to condemn to any such moves in future saying it is a way of surrendering the debt burden to the County government of Kakamega.
“And if truly he is giving us 20 per cent that is like giving us 20 per cent of the huge debts the company is being required to clear,” added the Senator.
Malalah urged the government to write off the huge debts the company owes the government saying it is the only way that the company can get back to life.
“What we want as the county government is for the national government to write off all debts that Mumias owes the government. KCB, KRA and KPLC are all government institutions that are owed by Mumias Sugar Company.
So Deputy President if you claim you want to help in reviving the Mumias Sugar Company let the debts be written off before saying you are transferring ownership to county government,” added Malala.
On Friday the DP said he government had given the company billions of shillings but it failed to pick up making the government quit funding its revival.
According to Ruto, Ksh4 billion was given to the company but still, the company failed to get back to life.
He urged the local leaders and farmers to allow KCB to take over the operations at Mumias Sugar Company saying it was the only hope remaining in the revival efforts.
KCB’s move to takeover Mumias Sugar company faced opposition from region’s leaders who opposed the move saying it will disadvantage their community.
On Tuesday, however, sugar farmers took to the street to protest against politicians stand saying that they are supporting the bank’s takeover.
They urged politicians to keep off the revival efforts.