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{
    "id": 1087014,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1087014/?format=api",
    "text_counter": 33,
    "type": "speech",
    "speaker_name": "Sen. Ndwiga",
    "speaker_title": "",
    "speaker": {
        "id": 278,
        "legal_name": "Peter Njeru Ndwiga",
        "slug": "peter-ndwiga"
    },
    "content": "Thank you, Mr. Speaker, Sir. Standing Order No. 51(1), provides that a Chairperson of a Committee may make a Statement relating to a matter for which the Committee is responsible. In fulfillment of this provision, I wish to make a Statement regarding the state of Mumias Sugar Company Limited and its impending take over or resuscitation. Mr. Speaker, Sir, at a sitting of the Senate held on 2nd June, 2021, pursuant to Standing Order No. 48(1), Sen. Cleophas Malala, MP, requested for a Statement from the Chairperson of the Standing Committee on Agriculture, Livestock and Fisheries on the state of Mumias Sugar Company Limited and its impending take over. In the Statement, the Senator sought the following information- (1)The current state of the company’s asset and liabilities indicating the value and core and non-core assets and which entity undertook such evaluation, if any. (2) The fate of the current receiver manager. (3)Details of when and by whom, the decision to lease out the company was made and any correspondence on the said decision to the Capital Market Authority (CMA) and other regulatory bodies. Also to provide details of the following- Procedure to be followed by the Government in selling its stake in the company and the biding process including who the bidders were, when the bidding took place; when the evaluation of submitted tenders was done; what criteria was used to pick the successful tenderers; what were the relevant legal instruments under which the process of leasing was conducted; whether there was public participation in the process and which other companies submitted their bids for the tender and when they were invited to bid; the companies revival plan and details of the entity deemed to be qualified to take over Mumias Sugar Company Limited and a justification for the same; whether stakeholders were consulted and a report of such consultations, if any, including the creditors and debtors and who shall pay the pending debts owed by the company particularly debts owed to farmers and workers. The Hon. Deputy Speaker directed the Committee to report within two weeks. The Committee met with the receiver manager, Mumias Sugar Company Limited, Mr. Ponangipalli Venkata Ramana Rao on Wednesday 9th June, 2021. He briefed the Committee as follows- a) A restraining order was issued by the courts restraining the sale of immovable assets of the Company on 6th November, 2019, which order was thereafter varied on 12th May, 2021 to include movable assets. The Order has limited debt recovery options and available options to restart the Company’s operations; b) The Receiver Manager restarted distillery operations in February, 2020, however, this faced several challenges e.g. shortage of molasses and high costs The electronic version of the Senate Hansard Report is for information purposes only.A certified version of this Report can be obtained from the Hansard Editor, Senate."
}