Migori MP John Pesa says this would give the cane farmers legal say in operations of the factories.
“By allowing 49 per cent as transferable shares to other investors, this will help local farmers own the factories legally,” he said, adding that this would prevent instances similar to Mumias experience where farmers lost to new investors.
Mr Pesa, accompanied by colleagues Mr Benson Mbai (Masinga), Dr Victor Munyaka (Machakos Town), Mr Evans Akula (Kwisero) and Dr Robert Monda (Nyaribari Chache), claimed there was substantial loss of cane in terms of weight, often manipulated by factory weighbridges.
Free issue of shares
In their report delivered at a Mombasa hotel yesterday, the Agriculture, Livestock and Cooperatives Committee recommends that immediate inventory of cane delivered to each factory targeted for privatisation be used as basis for free issue of shares to a minimum of 30 per cent to local farmers as compensation.
The report observes that there is simmering conflict between West Kenya Sugar and newly established Butali Sugar Company, which should be addressed immediately.
Says the report signed by committee chairman John Mututho (Naivasha): “This action is meant to build investor confidence.”
The report wants the same be extended to Miwani’s dispute with Grossley Holdings, which it recommends could be resolved in out of court settlement.
No tangible results
On the receivership of Miwani and Muhuroni sugar companies, the committee recommends the sacking of the two receiver managers, saying they have not produced any tangible results.
“Despite their long stay since 2005, with a salary package of Sh1,250,000 per month, nothing has been realised,” the report notes.
The committee is furious over Nzoia Sugar Company’s failure to appear before it and recommends immediate scrutiny of its operations instituted. “Particular attention should be directed to the cumulative loss amounting to over Sh20 billion,” says the report.
On proposed Tana Delta and Ramisi sugar factories, the committee wants the government to involve the local communities and resolve the underlying issues before sustainable implementation can be executed.
The committee calls for the amendment of the Sugar Act so that farmers who have delivered their cane be paid within 14 days failure to which the amount should attract interest.
