PRIVATIZATION OF SUGAR FACTORIES SUSPENDED TO AWAIT COURT CASE OUTCOME.

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Transitional Authority through lawyer Steve Mogaka who filed the case seeking orders to halt the intended privatization of sugar companies leaving Milimani law courts.

BY SAM ALFAN.
High court has suspended the intended privatization of five sugar factories, pending the hearing and determination of a judicial review application challenging invitation for expression of interest.

Justice George Odunga, said until the hearing by all parties the application filed the Transitional Authority is heard there will no further advertisement inviting investors to place their expression of interest.

The judge directed that the application be served on Privatization Commission and attorney general and the matter be heard by all parties on January 19.

The Transitional Authority through lawyer Steve Mogaka, moved to court seeking orders to halt the intended privatization of Nzoia Sugar, South Nyanza, Chemeli. Muhoroni and Miwani sugar companies, saying the advertisement seeking invitation to forward expression of interest was premature.

The lawyer told the court that the advertisement placed by Privatization Commission which appeared in the local daily news papers of December 8 inviting strategic partners to invest in the five sugar factories lacked merits and is waste of public funds.

He said that the advertisement is in breach of section 35 of the Transition to devolved Government Act and the same should stopped to allow proper procedures to be followed.

Mr Mogaka submitted that the impugned acts violate Article 35 of the constitution which require any public entity to furnish any information before seeking request for expression of interest

“The process of invitation for expression of interest is procedurally and substantively in violation of express provision of the law” he said.

He said that Transition Authority has not been provided with information by the commission to enable it performs its statutory duty before invitation is carried out.

The court heard that any further expenditure which includes more advertising or invitation for expression of interest will be a waste of public funds.

Mr Mogaka said that, its better to protect prospective investors from wasting their funds the Privatization Commission has withheld information regarding, intended privatization of the five sugar companies.

He said that at the hearing of the substantive application, the court will be asked to quash, prohibit and compel the commission not advertise for expression of interest regarding the five sugar companies.

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