Senators now want the government to set up a caretaker team to guard its assets in the five state-owned sugar mills earmarked for privatisation.
The Committee on Agriculture, Livestock and Fisheries on Wednesday noted a high risk of plunder by the millers' managers with the looming privatisation.
In a meeting with the Livestock Principal Secretary Harry Kimutai and Agriculture Chief Administrative Secretary Andrew Tuimur, the team chaired by Njeru Ndwiga (Embu) warned the government that there may not be assets to privatise if the current managers are allowed to oversee the process.
JOB LOSS
Migori Senator Ochillo Ayacko, a member of the committee, said, “There is need for preservation of the assets, otherwise we will have nothing to privatise when the time comes."
Mr Ayacko said the current managers are apprehensive that they will lose their jobs once the factories are privatised so they may not take care of the government's assets.
“Some of the bosses are no longer interested in the operations of the companies hence the need to protect the assets,” he said.
SUMMONSES
Mr Ndwiga said that due to the urgency of the privatisation of the public millers, the committee will next week summon Agriculture Cabinet Secretary Mwangi Kiunjuri and the Privatization Commission chaired by former Funyula MP Paul Otuoma.
In March, Mr Kiunjuri defended the plan saying investors will inject more money that will result in the purchase of new machines, especially for state-owned sugar companies such as Chemelil, Miwani, Muhoroni, Nzoia and Sony Sugar.
The injection of private capital in the firms, he said, will help rehabilitate and modernise the millers for competitive and sustainable production.
HIGH STAKE
The government plans to sell a 51 per cent stake in the companies to strategic investors and reserve 24 per cent for farmers and employees.
The privatisation strategy, approved by the National Assembly in 2015, will see the factories opened up to partners who will come with financial, technical and operational expertise in exchange for the 51 per cent stake.
The Privatization Commission has been holding stakeholder engagements with residents and farmers to get them to buy into the plan.
As at March 2018, the five state-owned millers had a combined debt of Sh89 billion. The debts were, however, written off by the government early this year to pave way for the privatisation.
DAILY NATION
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