{"id":2228,"date":"2022-01-11T13:18:35","date_gmt":"2022-01-11T13:18:35","guid":{"rendered":"https:\/\/countysplash.co.ke\/?p=2228"},"modified":"2022-01-11T13:18:35","modified_gmt":"2022-01-11T13:18:35","slug":"investigations-how-the-death-of-death-of-nzoia-outgrowers-company-noco-was-planned-and-executed","status":"publish","type":"post","link":"https:\/\/horizonnews.co.ke\/?p=2228","title":{"rendered":"INVESTIGATIONS: How the death of death of Nzoia Outgrowers Company (Noco) was planned and executed"},"content":{"rendered":"\n

By County Splash Team<\/code><\/strong><\/p>\n\n\n\n

Bungoma<\/code><\/strong><\/p>\n\n\n\n

When farmers Outgrower Company collapsed, its employees lost jobs and cane farmers contracted by Nzoia Sugar Company were left on their own and at the mercy of sugar millers who would exploit them at will.<\/p>\n\n\n\n

\u201cNoco was brought down by powerful forces (sugar barons) that were against\nits existence so that they can sneak cheap sugar into the country. They wanted\ncane farmers to remain on their own so that they can be exploited and dictate\nprices of cane delivered to the factory,\u201d said Jack Munialo, a cane farmer from\nSikata.<\/p>\n\n\n\n

\"\"
Some of the remaining tractors of Noco<\/code><\/strong><\/figcaption><\/figure>\n\n\n\n

Mr. Munialo said when Noco and Nzoia Sugar used to operate like Siamese twins, locals got jobs, cane farmers had money in their pockets and roads were opened up within the Nzoia sugar belt but now it has become relics of loss and poverty<\/p>\n\n\n\n

\u201cWe (cane farmers) were able to take our children to good schools but that\u2019s a thing of the past. Its Noco that ensured Nzoia sugar remained afloat and now it\u2019s struggling. Its previous managers and those of Noco are responsible for this mess,\u201d claimed Munialo.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Noco was established in 1991 through an Act of Parliament. It was charged with the sole responsibility of developing sugarcane and looking into the welfare of the farmers.<\/p>\n\n\n\n

Noco and Nzoia Sugar Company (NSC) signed a Memorandum of Understanding\n(MoU) that would see the miller retain 15 per cent levy from every tonne of sugarcane\ndelivered at the factory for crushing and have the money deposited on Noco bank\naccount.<\/p>\n\n\n\n

The arrangement was to introduce a revolving fund that Noco would lend out\nto the farmers at lower rates compared to what commercial banks would charge.<\/p>\n\n\n\n

\"\"
Some of the remaining tractors of Noco<\/code><\/strong> <\/figcaption><\/figure>\n\n\n\n

Noco received Sh347.297million loan from the defunct Kenya Sugar Board (KSB) – now Sugar Directorate in 1995 to help fund its operations including provision of subsidized fertilizer, seed cane, farm inputs, and expand area under sugarcane.<\/p>\n\n\n\n

For almost a decade, Nzoia sugar and the Out grower company enjoyed cordial relationship until 1999 when trouble started. <\/p>\n\n\n\n

It all started with Nzoia Sugar Company revising the levy fee charged on\nfarmers proceeds from 15 per cent to a paltry 1percent in 1999 and withheld\nremittances to the Noco account.<\/p>\n\n\n\n

A two year investigations by the County Splash News established that a breach in the Memorandum of Understanding (MoU) between the sister firms led to a serious financial dispute that would plunge Noco into financial crisis.<\/p>\n\n\n\n

The farmer\u2019s out-grower company filed a suit (HCC no. 312 of 1999) at the Bungoma Law Courts seeking orders from the court compelling Nzoia Sugar to pay Sh889 million they had deducted from farmers as retention levy, which had not been remitted to Noco\u2019s books of account.<\/p>\n\n\n\n

This is contained in an audit report by the Kenya Sugar Board that was released in 2011.<\/p>\n\n\n\n

\"\"
Some of the remaining tractors of Noco<\/code><\/strong><\/figcaption><\/figure>\n\n\n\n

Noco won the case but the management of Nzoia sugar contested the ruling at\nthe Court of Appeal in Eldoret (Civil Appeal no. 198 of 2005) which was\ndismissed on September 22, 2010.<\/p>\n\n\n\n

The court ordered that the dues be paid but the ruling led to the \u2018bitter\ndivorce\u2019 of Nzoia Sugar and Noco on November 22, 2010 after termination of an\nexisting MoU signed in 1991.<\/p>\n\n\n\n

Nzoia Sugar Company stopped deducting the 1 per cent sugar levy on cane\ndelivered as well as not remitting deductions to Noco as a way of crippling the\nout grower institution financially vide its notice NSC\/GAD\/CS\/21\/2010.By that\ntime, the debt had accrued to at least Sh889million<\/p>\n\n\n\n

Pursuant to clause 14 of the agreement, notice is hereby given that the\nagreement between Nzoia Sugar Company and Nzoia Outgrowers company shall be\nterminated upon the lapse of 18 months from the date hereof,\u201d reads part of the\ntermination letter signed by Benson Khwatenge, then Company Secretary.<\/p>\n\n\n\n

The letter was titled \u2018Notice of termination of agreement between Nzoia\nOutgrowers Company Ltd and Nzoia Sugar relating to the Nzoia Outgrowers scheme\ndated October 11, 1991,\u201d<\/p>\n\n\n\n

In response to our queries, Nzoia sugar management dismissed the audit report saying they are not aware of it and therefore not privy to the contents of the audit report.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The management avers that what is raised in the report are mere allegations\nand misrepresentation of facts.<\/p>\n\n\n\n

 \u201cWe stopped remitting Capital Levy to\nNOCO, as there was no legal agreement between NOCO and Nzoia Sugar Company to\nremit the levy.There was no legal agreement between the farmers and NOCO as\nwell as a public outcry from our farmers who had rejected the idea of being\ndeducted capital levy for NOCO,\u201d reads in part a letter from Nzoia Sugar. <\/p>\n\n\n\n

On court order, the they said the court ordered them to pay Noco members (cane farmers) a total of Sh.473.66million being arrears of the cane payment as at 30th June 1999 and another Sh42.27million as retention fund arrears as at 28th February,1999.<\/p>\n\n\n\n

They said they were also ordered to pay another Sh27.03million to\nNoco,saying the money was a grant from the USAID to Noco dating back to\nSeptember 1,1999 and Sh6.61million as the cost of the abrital proceedings\nincluding acrued interest.<\/p>\n\n\n\n

The miller was to pay a total of Sh549.57million but by the time the court\nmade the order, it had gained interest to a tune of Sh889million.<\/p>\n\n\n\n

According to the management,  they\ncomplied with the court order and settled everything in May 2012 but no proof\nwas provided to show that the said payments were made.\u201cNzoia Sugar Company does\nnot owe Noco any money at all. It is in fact Noco that owes NSC,\u201d<\/p>\n\n\n\n

They said that they paid out the money and the matter was settled in May\n2012 but documents in our possession shows that the management of the sugar\nmiller and that of Noco entered into an out of court settlement and revised the\namount downwards from Sh889million to Sh62million.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A down payment of Sh10million was made to Noco on May 14, 2012 and the then\nNoco Chairman Joash Wamang\u2019oli\nreceived the money.<\/p>\n\n\n\n

\u201cThat Noco gives Nzoia Sugar time to procure the relevant approvals on the\npayment of the Sh52million balance. That Noco and Nzoia Sugar hereby mark\nBungoma court case HCC No. 312 of 1999 as fully settled,\u201d reads part of the out\nof court agreement.<\/p>\n\n\n\n

However, no one knows where the Sh10million down payment was taken to and\nwhether the Sh52million balance was paid out or not.<\/p>\n\n\n\n

Mr. Wamang\u2019oli when\nreached for comments sided with the Nzoia Sugar Management saying Nzoia Sugar\nCompany has no debt with Noco.<\/p>\n\n\n\n

Until recently, Wamang\u2019oli\nhas been the Chairman of Nzoia Sugar board of directors but Agriculture Cabinet\nSecretary Peter Munya sacked his appointment and the entire board in order to\npave the way for miller to be leased out. He is still a director at Noco to\ndate.<\/p>\n\n\n\n

\u201cNoco had sued Nzoia Sugar Company for non-payment of farmers for cane\ndelivered and the money which had been paid. Kingsley Mutali (then Noco General\nManager) went to court demanding Sh889m which had no basis and wanted to put\nthe sugar miller under receivership,\u201d said Wamang\u2019oli in an interview at his home with The Standard.<\/p>\n\n\n\n

He added: \u201cThe Sh889million being demanded by Mr. Mutali was a hoax, the\nonly money they owed us was Sh62million which was paid out. He was just being\nerroneous, sensational and malicious. Noco failed to appear during the\njudgement day and an order was issued reversing the earlier order made in\nEldoret from Sh898.99million to Sh62million,\u201d<\/p>\n\n\n\n

But the current Noco Chairman Christopher Sifuna has maintained that Nzoia\nSugar Company did not make any payments as ordered by the court according to\ntheir books of account.<\/p>\n\n\n\n

\u201cThe arbitrary award by the Eldoret High Court of Sh889million was not paid.\nWe also want the capital levy of Sh15million they have been deducting from the\nover 70, 000 farmers we have since 2010 and another Sh700million of cane\ndelivered to Nzoia Sugar from 2017 to date. In short Noco wants from Nzoia\nSugar at least Sh1.6billion.<\/p>\n\n\n\n

Sifuna said they are planning to move to court to get orders to auction the\ncompany so that we they can recover their money.<\/p>\n\n\n\n

Ends<\/p>\n","protected":false},"excerpt":{"rendered":"

By County Splash Team Bungoma When farmers Outgrower Company collapsed, its employees lost jobs and cane farmers contracted by Nzoia Sugar Company were left on their own and at the mercy of sugar millers who would exploit them at will. \u201cNoco was brought down by powerful forces (sugar barons) that were against its existence so […]<\/p>\n","protected":false},"author":4,"featured_media":2229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2228","post","type-post","status-publish","format-standard","has-post-thumbnail","category-kenya-news"],"yoast_head":"\nINVESTIGATIONS: How the death of death of Nzoia Outgrowers Company (Noco) was planned and executed - Horizon News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/horizonnews.co.ke\/?p=2228\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"INVESTIGATIONS: How the death of death of Nzoia Outgrowers Company (Noco) was planned and executed - Horizon News\" \/>\n<meta property=\"og:description\" content=\"By County Splash Team Bungoma When farmers Outgrower Company collapsed, its employees lost jobs and cane farmers contracted by Nzoia Sugar Company were left on their own and at the mercy of sugar millers who would exploit them at will. \u201cNoco was brought down by powerful forces (sugar barons) that were against its existence so […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/horizonnews.co.ke\/?p=2228\" \/>\n<meta property=\"og:site_name\" content=\"Horizon News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/horizonnewsglobal\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-11T13:18:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/horizonnews.co.ke\/wp-content\/uploads\/2022\/01\/file7dtli2zlqc1x2ewqbcy.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Horizon News\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Horizon News\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/horizonnews.co.ke\/?p=2228#article\",\"isPartOf\":{\"@id\":\"https:\/\/horizonnews.co.ke\/?p=2228\"},\"author\":{\"name\":\"Horizon News\",\"@id\":\"https:\/\/horizonnews.co.ke\/#\/schema\/person\/0aaeb0e26ff89059b5ef81bcf454e3c4\"},\"headline\":\"INVESTIGATIONS: How the death of death of Nzoia Outgrowers Company (Noco) was planned and executed\",\"datePublished\":\"2022-01-11T13:18:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/horizonnews.co.ke\/?p=2228\"},\"wordCount\":1364,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/horizonnews.co.ke\/#organization\"},\"image\":{\"@id\":\"https:\/\/horizonnews.co.ke\/?p=2228#primaryimage\"},\"thumbnailUrl\":\"https:\/\/horizonnews.co.ke\/wp-content\/uploads\/2022\/01\/file7dtli2zlqc1x2ewqbcy.jpg\",\"articleSection\":[\"Kenya News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/horizonnews.co.ke\/?p=2228#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/horizonnews.co.ke\/?p=2228\",\"url\":\"https:\/\/horizonnews.co.ke\/?p=2228\",\"name\":\"INVESTIGATIONS: How the death of death of Nzoia Outgrowers Company (Noco) was planned and executed - 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