HOW SARRAI REPACKAGES BRAZILIAN SUGAR IN MUMIAS PACKETS.- As leaders enjoy cheap cash.

UGANDAN- Investor Sarrai group has been importing 8000 metric tons a week and repackaging in Mumias Sugar-branded bags. We can now reveal.

Under tight security escort, trucks of sugar are seen entering the company late nights from Uganda boarder post at a warehouse in Shibale where the company is located, offloaded and repackaged.

An insider told eshikumo2030.blogspot.com that a mini Printer was installed at the sugar stores for printing the Mumias Sugar-lebbled bags and packets.

The trick according to the insider is to use the Mumias trade mark to sell sugar that is not certified in terms of quality. 

So far hundreds of tons of sugar, in gunny bags are stored at a warehouse in Shibale and leaders are fully aware of the activities. 

SARRAI conduits at the company have been colluding with local opinion leaders by issuing out sugar, money in cash and other promises as the Indian continues to make millions selling "Mumias Sugar" that is otherwise not Mumias Sugar. 

As this is happening on the ground, The High Court in Nairobi last week pushed the sentencing of Sarbjit Singh Rai, Rakesh Kumar and Stephen Kihumba of Sarrai Group to June 15 in a contempt of court case.

This is after Justice Dorah Chepkwony recused herself from the Mumias Sugar lease case since she has been transferred.

The three officials were directed to appear before Justice Alfred Mabeya- the presiding judge of the Commercial division, and show cause why they should not be jailed for contempt of court, for continued operations at Mumias Sugar Company (MSC) despite being ordered to stop.

Justice Chepkwony found them guilty of contempt of court last month and fined them Ksh 100,000 before directing them to appear before Judge Mabeya for sentencing because she was on transfer.

Justice Mabeya, on his part, pushed the sentencing of Rai, Rakesh Kumar and Kihumba to June 15 before Justice Josephine Mongare.

Sarbjit Singh Rai the owner of Uganda-based Sarrai Group controversially won a 20-year lease to operate Mumias Sugar Company.

Judge Chepkwony ruled last month that Sarrai Group had proceeded with the operations at the miller despite being ordered to cease operations on July 28, 2022.

The Uganda-based company had been awarded a 20-year lease to operate the troubled miller but was later cancelled.

KCB Group, which had placed the miller under administration had challenged the decision and was granted temporary orders in September last year, for them to continue operating, a stand supported by Sarrai Group.

In his ruling on April 14, 2022, Justice Mabeya said if the lowest lease amount of Ksh 5.8 billion by Sarrai Group were accepted, the sugar miller would never bounce back to profit.

He said the amount was insufficient to settle the debt owed, pay cane farmers and resume the company’s operations.

“The receiver manager cum administrator was seriously conflicted in awarding the lease to Sarrai Group.

“The lease should have been awarded to a company with the financial muscle to bring the company back to life. I do not understand why he disregarded the highest bidders,” Mabeya said in his ruling.

Tumaz and Tumaz emerged as the top bidder with Ksh 27.6 billion for a 20-year lease in the Mumias Sugar bidding process which had attracted a total of eight bidders
ENDS. 

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