The government has suspended Bungoma’s Nzoia Sugar Company MD CPA Wanjala Makokha for three months over corruption allegations.
Announcing his Suspension, the Chief Administrative Secretary (CAS) Agriculture Lawrence Omuhaka said it was a government decision to restructure the firm.
Agriculture Cabinet Secretary Peter Munya picked Dr. Chrispinus Ogutu Omondi from the ministry of agriculture as the acting Nzoia Sugar Managing Director.
“Makokha has failed in his duties and the minister saw it good to restracture the firm through suspending the MD, already the team of investigators are on the ground investigating the alleged corruption issues,” said Omuhaka.
Ogutu comes from Butula in Busia county and cane farmers are optimistic that he will turn around the firm fortunes to benefit cane farmers.
Here are the main reasons why CPA Makokha was suspended;
Farmers have not been paid for over 9 months with 700M yet the Company is crushing sugar daily worth Sh30 million The factory workers have not been paid and are in arrears with over Sh2 billion.
The MD started by paying them half salary and later defaulted.
The machines have not been serviced for 6 years now hence the sugar produced does not meet the set set standards by COMESA.
The MD awarded his cronies a tender for Biometric machine worth Sh200 Million through a company called unit Maize company without procedure.
The MD cut nucleus sugar worth 700,000 tones and sold to Butali Sugar without due process and money not traced in the books of account of Nzoia Sugar.
Indigenous trees cut and sold without due process. The money never reached the company accounts.
The MD has been diverting money meant for Farmers for individual use by taking advantage of absence of the board of Directors to oversight him.
The MD awarded an insurance tender to a firm based in Kisumu without competitive bidding because the firm has links to his own firm called Riann Insurance agencies.
Cane cutters have never been paid for the last one year despite sugar being transported from the farms.