This archive report was first published on 18 June 2021.
OMTATAH WANTS COURT TO FREEZE BIDS FOR MUMIAS SUGAR REVIVAL ¶
June 18, 2021
Activist Okiya Omtatah has moved to court seeking an order to temporarily suspend a directive by the Senate to Mumias Sugar Company receiver manager Ponangipalli Venkata Ramana Rao from inviting bids from investors to salvage the troubled miller.
According to Omtatah, the Senate's Agriculture Committee directed Rao to re-advertise the bid to salvage the company within 14 days, following concerns over a secretive bidding process.
However, Omtatah claims that Rao secretly invited eight investors, including Catalysis Group of Russia, Sarrai Group of Uganda, and Kibos Sugar and Devki Group, without proper planning or transparency.
He alleges that none of the bidders had the capacity to revive the company, and that Rao's actions may be aimed at disposing of the company to his cronies for a song.
Omtatah also points out that Rao has mismanaged the ethanol operations and shut them down in March 2021, halting all manufacturing operations at the company.
He further claims that Rao has neglected many assets of Mumias Sugar Company, including the Nucleus Estate and machinery, resulting in huge losses due to the deterioration of the assets.
The neglected assets, especially the nucleus estate, pose a danger to the public, Omtatah adds.
