BY SAM ALFAN.
West Kenya Sugar Company has opposed an appeal by Gakwamba Farmers seeking to overturn a decision by the High Court cancelling a 20-year lease of Mumias Sugar to Uganda based Sarrai Group.
The sugar miller told the appellate court that Gakwamba’s appeal does not disclose any arguable case, with chances of success.
The company says the draft appeal by the farmers’ cooperative society constitutes unsubstantiated and misplaced attacks on the ruling of Justice Alfred Mabeya delivered on April 14.
Through Senior Counsel Paul Muite and Martin Gitonga, West Kenya said the application by Gakwamba Farmers is frivolous, incompetent and an abuse of the court process.
“It is apparent that the application has been filed with an activist agenda of frustrating the appointment of the new administrator of Mumias Sugar and preventing the cancellation of the lease issued to Sarrai Group ltd,” Muite submitted.
The lawyers added that Gakwamba has failed to substantiate claims that Justice Mabeya’s ruling disregarded the social economic impact it will have and particularly that it had occasioned the loss of jobs.
“No evidence has been tabled by Gakwamba Farmers to demonstrate the number of employees appointed by Mumias subsequent to the award of the lease awarded to Sarrai and that such employment was solely pegged on the substance of the said lease,” the lawyers added.
They added that it was absurd for Gakwamba farmers to expect Sarrai Group to remain in possession and control of the premises of Mumias after cancellation of the lease.
West Kenya dismissed claims by the farmers that there was a vacuum in the administration. “There is no vacuum in the administration, control and management of Mumias and appointment of Kereto Marima as administrator of Mumias ushers in fresh impetus in the revival plans of Mumias,” West Sugar said.
They said the high court agreed with arguments by the West Kenya sugar that the entire bidding process and opening of the bids was marred with opacity, lack of accountability and transparency by administrator Ramana Rao.
In his decision, Justice Mabeya held that Rao overstepped his mandate by undertaking the role of the Competition Authority of Kenya in his determination that awarding the lease to West Kenya would give it a dominant position in the sugar market.
West Sugar director Jaswant Singh Rai questioned the criteria adopted by Rao in awarding the lease to Sarrai Group who was the lowest bidder and bypassing other higher bids.
High court held that Rao failed to provide any justifiable explanation for the unconscionable award of the lowest bidder (Sarrai Group).
The High Court also questioned the refusal by Rao to produce in court the lease awarding the lease to Sarrai Group without plausible explanation yet the said lease was the subject of the contentious proceedings.
Justice Mabeya directed the removal of Rao saying he failed to discharge his duties as an administrator in the best interests of Mumias.
The judge observed that whereas Rao in his capacity as receiver has collected Sh800 million between September 2019 and September 2021, not a single cent was applied towards repayment of the KCB debt and Rao favored the status quo of perpetual indebtedness.
The company further adds that Rao removal as administrator was not influenced by extraneous factors as alleged by Gakwamba Farmers but was underpinned by determination of malpractices on his part in the performance of functions as administrator and receiver of Mumias.
