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Kisumu

4/10/2007

Arrum Tidi

The Awndo based Sony Company is bought in a new mega financial scandal involving the purchase of 25 new contractors at alleged inflated prices.

According to information reaching us, the company was given over Kshs. 100 milion to purchase new tractors to boost its transparent fleet. Due to bad land terrain the specific instruction was that the company was to purchase only tractors with horsepower of no less than 11o and 120 units respectively.

The firm was advised to purchase 8 tractors with 120 horsepower and the rest should have to be on the range of 110 horsepower units.

Sony advertised the tender for the supplies of the tractors. The advert attracted 25 companies and individual traders. But the tender was secretly opened. It allegedly foavoured one form.

But the company for some unknown reason down graded the tender requirement to 90 and 110 horsepower units respectively and sourced the from CMC.

The company later awarded the tender to CMC for the supplies of NewHolland tractors with the range of 90 and 110 engine horsepower. Each tractor was sourced at an exorbitant price of between Kshs. 3.4 million and Kshs. 3.6 million each respectively.

But papers in our position plus cash sale receipts has revealed that the same CMC has sold the tractors of the same horsepower at a discount prices between Kshs 3 million and Kshs 3,150,000 per each unit to other customers. The question remains sell the sale to Sony Sugar at different prices?

Farmers in Awendo are up in arms calling for the government to launch investigation with the view to establish the reason why Sony Sugar is charged excessively with extra Kshs 500,000 on top of each tractor purchased by the company.

A new Hollan leader was also sold at Kshs 7.2 in a price which is suspicious and not transparent. The farmers also wanted the government to investigate the allegation that prior to the awarding of the tender the chairman of the Sony Sugar Board of Directors Mr. Herbert Ojwang and a top unnamed official in the Ministry of Agriculture had visited CMC offices in Nairobi where the deal concerning Sony Sugar new tractors was sealed. Even long the tenders were secretly opened.

In the deal, according to experts Sony Sugar Company is overcharged by between Kshs 440,000 and Kshs 500,000 respectively and that unnamed person who allegedly brokered the deal stand to benefit from between Ksh 12.5 million to Kshs 15 million in "Kick-backs"

The CMC was secretly awarded tender in total defiance of the technical committee’s evaluation and recommendations. The type of the tractors bought from the CMC will not withstand the ban land terrain in the zone sugar growing zones when used in cane transportation within Awenda and its environs.

The matters, says the farmers should be thoroughly investigated by the Kenya Anti-Corruption Commission (KACC) and if any culprit are detected such people should be prosecuted contacted for comments Sony Sugar Board Chairman Mr. Herbert Ojuang’ was hasty but rubbished the claims. He however promised to contact this writer but did not fulfill his promise.

The New Sony Sugar CEO could not be reached for his comments over the allegations.

Ends

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