Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The officials are accused of involvement in clearing the illegal consignments/FILE

Agriculture

Private company imported sugar on behalf of Sony Sugar

Sony Sugar received Sh82 million in profit from the joint venture with the private company which financed the importation of sugar/ moniangoh2030

NAIROBI, Kenya, Jul, 19 – Sony Sugar Company says it did not import sugar during the duty-free import window granted by the government last year.

Acting Chief Executive Officer Bernard Otieno says the company had no capacity to finance any importation but signed a partnership with another company to bring in 50,000 Metric tons in a profit-sharing arrangement.

“The godowns where the sugar was stored were no ours. We were basically a consignee for this sugar. If you look in the agreement the obligation of storing packaging and distribution was with the other party,” Otieno explained.

His explanation at the Joint parliamentary committee probing the entry of contraband sugar into the Kenyan market was not convincing to the MPs, after saying the firm did not see the sugar even though they received Sh82 million as profit.

The MPs further questioned why Sony Sugar had to partner with private companies for importation yet the un-named company did not have the importation permit.

“The sugar was consigned to a private importer only at a commission of Sh82 million hence putting the lives of Kenyans at risk. Can you take responsibility if that is the same sugar outside there with impurities?” asked Busia Woman Representative Florence Mutua.

Dagoretti North Member of Parliament Simba Arati seconded her sentiments saying Sony Sugar is the genesis of the sugar crisis that the country is now experiencing

“You as the acting CEO, aren’t you ashamed, haven’t  you  broken the regulation pertaining to public service by allowing importation beyond period and generally getting waver off duty?” Arati wondered.

The joint committee has been probing the sugar scandal for over a month now as Kenya Bureau of Standards said it has not detected elements of heavy metals in samples of the sugar it collected from the local market and tested so far.

Appearing before the joint sitting of the National Assembly committees on Trade and Industry, KEBS acting Managing-Director Moses Ikiara on Tuesday said their tests did not reveal any traces of Mercury, arsenic, lead and copper.

Advertisement. Scroll to continue reading.

So far, he said, they have tested 53 samples that were sourced from 17 out of Kenya’s 47 counties.

Ikiara further added that of the 53 samples, 38 complied with the standards, representing 72 per cent conformity.

15 samples, however, failed the exam of moisture, yeast and mould, colour, total viable count and polarization, according to the acting MD.

Additionally, Dr Ikiara said Kebs detected copper and lead in two samples from sugar seized in Eastleigh and Ruiru, which had not been released into the local market.

The Joint Committee is expected to deliver its final report concerning the sugar saga on Tuesday next week.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...