President William Ruto has escalated his involvement in the intensifying struggle for control over Mumias Sugar Company for the second consecutive day.
The saga, which took root on Sunday with a stark proclamation, now stands as a fierce clash for dominance in the company’s future.
Addressing the issue, President Ruto declared, “There’s a cartel there, I don’t know who is taking who to court, someone claims they bought something, I’ve told them none of those people have anything there. All those crooks should leave. That company belongs to the citizens, and we will reorganize it. There will be no lawsuits; we won’t entertain them. They should take out the cases themselves and leave. I’ve given them three options for a peaceful solution: either they leave Kenya, or I’ll put them in jail, or they can travel to heaven. They have troubled us so much here in Mumias.”
The veil shrouding the abduction and subsequent release of businessman Jaswant Rai has thickened, with the interrogation of Yogesh Pattni, CEO of Victoria Commercial Bank.
Summoned by the Economic Crimes Unit, Pattni was questioned regarding his bank’s involvement in facilitating international company Vartox Resources Limited’s acquisition of Mumias Sugar Company’s debts.
This investigation also centered on the ongoing insolvency case in court.
Insiders familiar with the probe revealed to Citizen TV that Pattni’s links to Rai Group Chairman Jaswant Rai were also scrutinized.
Court documents in possession of Citizen TV unveil that on July 3, Victoria Commercial Bank and Vartox Resources Limited moved to court to halt the DCI’s Economic Crimes investigation against them. They sought to prevent summoning, interrogation, and document demands from the bank and company until a legal decision is reached.
A conservatory order was granted on July 5.
Pattni’s summons followed Jaswant Rai’s mysterious abduction by armed men on Wood Avenue. Curiously, the kidnappers, who captured one of Kenya’s leading sugar magnates operating multiple sugar companies, refrained from demanding ransom, leaving his release unexplained.
Rai’s lawyer, Kioko Kilukumi, confirmed his release but refrained from elaborating on the incident.
As questions swirl around the enigmatic kidnapping and release, President Ruto, attributing the obstacles to rejuvenate the ailing sugar company to Rai and fellow industrialists in the sector, has now mandated them to withdraw lawsuits or face dire consequences.
The journey to revive the once-mighty western-region sugar giant commenced in 2019, when KCB Bank appointed PVR Rao as the company’s receiver manager.
However, legal hurdles posed by creditors and interested parties have continuously plagued the revival efforts.
