Mumias Sugar: Tumaz and Tumaz Enterprises File Contempt of Court Case Against Sarrai

Tumaz and Tumaz Enterprises, a joint bidder for the assets of Mumias, which placed the highest bid of Kshs 27.6 billion vs Sarrai's Ksh.11.5 billion for Mumias lease.

Tumaz and Tumaz Enterprises has filed a contempt of court case in court against Ugandan firm Sarrai Group and Mumias Sugar Company receiver-manager Ponangipalli Venkata Ramana Rao for disobeying a court order that had suspended the lease award.

Tumaz and Tumaz Enterprises, a joint bidder for the assets of Mumias, placed the highest bid of Kshs 27.6 billion vs Sarrai’s Ksh.11.5 billion for Mumias lease. 

Tumaz argues that Sarrai Group had started work at the sugar miller despite a court order suspending the lease on December 29th, 2021, and which was served to both Sarrai and Rao on December 30th and 31st.

Justice Jairus Ngaah directed on January 6th that the parties in the contempt of court case filed by Tumaz appear for a hearing on Monday, January 10th. 

“The orders alleged to have been breached and which now form the foundation of contempt proceedings were made by Justice Anthony Ndungu, I direct that this matter be mentioned on January 10th 2022 before Justice Ndungu for directions and orders he may deem appropriate,” ordered Justice Jairus Ngaah.

Tumaz further wrote to the Senate on January 6th through their lawyers to seek parliament’s intervention, in compelling Rao to provide information on the bidding outcome to bidders and the public. They also asked the Senate to request information on the procedure and evaluation of the technical bids including information on who carried out the evaluation and reasons why other bids were unsuccessful. 

The letter also requested the Senate to ask Rao to provide the impact of seizures of Cogen and ethanol plants by French lender Proparco and Ecobank respectively, whose assets were part of the August 4th tender notice by Rao.

The Ugandan investor says it has already set aside Ksh 1.1 billion to resuscitate the miller.

“To start operations in the projected six to eight months, Sarrai will inject $10 million (KSh1.3 billion),” the company said besides the legal suits filed in court. 

According to the Group, works to turn around Mumias Sugar Company Limited (In Receivership) have formally commenced following the asset takeover of December 23, 2021.

“We’ve finished ploughing over 400 hectares of the nucleus estate in preparation for the planting season. We are also in the process of servicing the tractors and other moving vehicles as well as rehabilitate machinery in the plant that had been idle for over three years.”