The legal battle surrounding the leasing of Mumias Sugar Company to Ugandan firm has taken a new twist after West Kenya Sugar Mill was been dragged into the saga.
Gakwamba Farmers Cooperative Society Limited has accused West Kenya of using their society to fight the lease because it lost the tender.
The West Kenya obtained an order from the High Court in Vihiga on January 11, restraining Tumaz & Tumaz Enterprises Ltd and the miller’s receiver-manager Ponangipalli Rao from interfering with the lease that was awarded to Sarrai Group of Uganda.
However, the farmers through lawyer Danstan Omari claim that the West Sugar Mill are not farmers to Mumias Sugar and don’t know anything about the suit filed in court neither do they have minutes passing any resolution to institute any suit as is their norm.
“We did not authorize the firm of Kibe Mungai to represent us in this matter or any other. There was no resolution passed either authorizing them to render their legal services,” the farmers claim.
Through their manager Henry Ojude, the farmers claim that Charles Ochieng did not have any authorization to swear an affidavit on their behalf.
“We are aware that the firm of Kibe Mungai represents the interest of Jaswani Rai who is the director of West Kenya Co which also bid in the same tender and is only using our society with an ill motive and in an ethical and unprofessional manner to file suit to benefit from the leasing of Mumias Sugar,” reads court papers.
Justice William Musyoka gave the restraining orders until the case by Kakamega County is heard and determined on January 25.
“That, pending disposal of the motion or either-or further orders of the court, interim conservatory order in rem, is hereby issued restraining the first and second respondents jointly and severally, their agents, or any person acting under their behest or any other person, from terminating, interfering, altering the lease contract between Mumias Sugar Company (In Receivership) and the interested party herein,” he said.
However, the farmers say that the application seeking to stop the lease of Mumias Sugar is an abuse of the court process and should be dismissed with costs.
The lease was suspended on December 29, pending determination of a petition filed by Tumaz & Tumaz, which claims the bidding was marred with fraud and illegalities.
This is after Tumaz & Tumaz Enteprises moved to court accusing Sarbjit Rai, the owner of Sarrai Group, Rakesh Kumar Bvats (manager) and KCB Group appointed receiver manager Ponangipalli Rao of disobeying a court directive, which froze the 20-year deal.
The company, through Julius Mwale, however, said Sarrai Group, which is associated with the Rai family, has been on the ground since December 24 undertaking different activities including meeting with officials from Kenya Power in a bid to have electricity restored to the plant.
Sarrai has allegedly been meeting with engineers at the firm to discuss ways of acquiring new spare parts to revive the milling plant and also began recruitment of new staff in disregard of the court order.
Sarrai Group had tried lifting the order on January 3 and filed exhibits in court showing tractors ploughing Mumias nucleus estate.
Kumar had argued that the suspension of the lease was issued after the company had taken over Mumias, a fact that was not disclosed to the court.
“The respondents as well as the said officers or agents were duly served with the orders of this court on 30th and 31st December, 2021 but in blatant breach and arrogance ignored the authority and dignity of this honourable court,” lawyer Javier Munzala for Tumaz said.
He accused Sarrai Group of purporting to take over the assets of Mumias by carrying out construction works, ploughing of the farms and rehabilitating roads within the company, in contempt of the court order.
He said the Ugandan-based company had changed the security guards at Mumias and initiated recruitment in respect of vacancies at the miller.
Munzala said Rai, Kumar and Rao should be punished for contempt for disregarding the court order.
Justice Jairus Ngaah certified the contempt application as urgent but directed the case to be handled by Justice Anthony Ndung’u, who had issued order suspending the lease.