End Mumias Sugar feuds – Business Daily

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End Mumias Sugar feuds


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Entrance gate at Mumias sugar company. PHOTO | ISAAC WALE | NMG

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Summary

  • After two years under the stewardship of Ponangipalli Venkata Ramana (PVR) Rao, High Court judge Alfred Mabeya last Thursday took the process back to the drawing board.
  • The judge canceled the 20-year lease awarded by Mr Rao and relieved him of his role as the administrator of the ailing miller, faulting him for not putting the interest of the firm above all else.
  • Going by the huge bids received before the lease was awarded to Sarai Group, it is clear there is a strong investor appetite.

If the latest twist in the never-ending Mumias Sugar Company #ticker: MSC saga demonstrates anything, it is that the government should take a leading role in efforts to revive the miller.

After two years under the stewardship of Ponangipalli Venkata Ramana (PVR) Rao, High Court judge Alfred Mabeya last Thursday took the process back to the drawing board.

The judge canceled the 20-year lease awarded by Mr Rao and relieved him of his role as the administrator of the ailing miller, faulting him for not putting the interest of the firm above all else.

The cancellation of the lease to Uganda’s Sarai Group is the latest setback for farmers and creditors who have been waiting anxiously for the miller’s revival. They have seen a lot of talk about revival, but little action despite the billions of shillings already spent.

For years, the revival has been thwarted by political fighting. In this latest attempt, the process was seemingly undone by rivalry among the billionaire Rai siblings.

But all is not lost. Going by the huge bids received before the lease was awarded to Sarai Group, it is clear there is a strong investor appetite. The squabbling should not be allowed to go on endlessly – not when there is so much at stake.

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