The Deputy President William Ruto has said that the State is planning to offload its shareholding in troubled Mumias Sugar Company and surrender to the County Government in a bid to revive and steer its development.
Speaking in Kakamega County earlier today, the DP has revealed that the National and County Government were in talks to have the shares handed over so that a lasting solution would be found to solve the menace in the company.
Ideally, Ruto said that a plan is already in works where where the County Government will be given higher and major roles to play in running the company affairs.
“We have agreed as the national government and told the county government that we’re in the process of surrendering the shares we hold to them so that together with other county stakeholders they can find a lasting solution,” said Ruto.
The National Government owns 20 percent of shares in the company with Sh3.7 billion poured into to facilitate the strategies and develop the company sinking into deep waters.
Mumias sugar company started collapsing in 2012 as it experienced low sugar output, decreased profits, inefficiency and embezzlement of funds.
Around the same year, an audit report revealed traces of financial irregularities which top management had hid from the company’s Board of Directors, leading to a loss of over KSh1 billion.
The Company has since been a ghost project, with majority of workers loosing their jobs and rendered jobless.
In the last 2013 elections the Uhuru-Ruto government had made the Company part of their agenda, promising Mumias residents that they would get the company back to its feet once elected.
However, they were empty promises as almost seven years later, the company is still collapsed, with zero effort to help resuscitate it.
Speaking during the official launch of Wanga Technical and Vocational College in Mumias East on Friday,DP urged the KCB bank to seek talks with the county government on how the receivership could amicably be handled and help revive the miller.
“We brought the first Sh2 billion here it went under, we added another Sh2 billion again it was misappropriated, we looked at that and said enough is enough,” said Ruto.
Among the leaders that accompanied DP William Ruto during the visit were Ben Washiali (Mumias East), Malulu Injendi (Malava), Enock Kibunguchy (Lukayani), John Waluke (Sirisia) and former Kakamega senator Boni Khalwale.