COURT TOLD HOW LEASE OF MUMIAS WAS HURRIED BY ADMINISTRATOR.

BY SAM ALFAN.

Court appointed administrator for Mumias Sugar Company is on the spot for failing to ensure that due process was followed in the leasing of assets of the ailing miller.

Making submissions before the High Court, five farmers who have challenged the lease to Uganda-based Sarrai Group further said Ponangipalli Venkata Romana Rao failed to discharge his duties as the administrator in an accountable manner.

Their lawyer Kibe Mungai told Justice Alfred Mabeya the evaluation of the bids and the leasing of Mumias to Sarrai was opaque and shrouded in secrecy against the Competition Act.

“There was no full disclosure about the size of the bids,” said Kibe.

Lawyer Paul Muite who represents West Sugar Company said his clients would have managed to offset the debts accrued by Mumias in a very short span compared to Uganda’s Sarrai Group which was the smallest bidder but was awarded the lease.

Lawyer Martin Gitonga who also represents West Sugar Company submitted that had the receiver manager involved creditors in a meeting to discuss the lease, they would not have settled on the lowest bidder.

“The creditors would not have approved giving the lease to the lowest bidder. This suit is as a result of the misconduct of the receiver,” Gitonga submitted.

Gitonga also lauded KCB bank for wanting people to believe that they put a seal to lease the Mumias Sugar assets to the lowest bidder.

This would mean that the money owed to them by the sugar giant will not be recovered fully.

Justice Mabeya also struck out an affidavit by the Attorney General after lawyer James Orengo said it was filed outside the given timelines.

“No leave of the court was sought in order to file the replying affidavit,” ruled the judge.