Mumias Sugar receiver manager on the spot over misconduct in lease case

Lawyer Paul Muite submitting during the hearing of the Mumias Sugar Co. lease case. Photo/Suek

Mumias Sugar Company receiver manager is on the spot for failing to ensure due process was followed in the leasing of Mumias Co. assets.

Ponangipalli Venkata Romans Rao, is alleged to have failed to discharge his duties in an accountable manner.

During the hearing of the Mumias lease suit before Justice Alfred Mabeya, lawyer Kibe Mungai for five of the applicants submitted thatthere was illegality and corruption in the award of the tender.

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

Lawyer Paul Muite who represents the highest bidder, West Sugar Company said his clients would have managed to offset the 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.

Rao is named the 1st defendant in the case.

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 agreed to give it to 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 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.