This archive report was first published on 30 July 2019.
On July 30, 2019, the Privatisation Commission picked Baker Tilly Merali's to advise on the sale of five State-owned sugar millers, with the accounting firm set to earn Sh109 million in professional fees.
The commission had initially set a deadline of July 31 to dispose of the loss-making entities, but the State failed to meet the target.
According to internal documents seen by the Business Daily, the fees for consultancy services were shared among five companies, translating to Sh21.5 million per sugar company.
Chief executive Joseph Koskey defended the process, stating that the advisory had four components, including legal, technical, financial, and valuation, and that the selected firm had tapped other companies for various aspects of the advisory.
"This is value for money," Mr Koskey said, adding that the lead consultant was on the ground to advise on the transaction until its completion.
Mr Koskey cited political interference and the delay in the release of the sugar task force report as challenges to the process, stating that the findings of the task force could inform the future of the millers.
