Vartox Resource. Inc., a Dubai-based company has withdrawn the case against Mumias Sugar Factory days after President William Ruto threatened sugar tycoons. He warned them against exploiting Western Kenya Residents through dragged-out court cases.
The company bought the debts of a local bank in Mumias Sugar. It then filed a petition at the appeals court against the sugar factory. It was claiming billions from Mumias Sugar Company for loans inherited from the local commercial bank.
The bank had inherited the loans from two lending institutions that advanced the money using Mumias Sugar’s ethanol and power generation plants as security.
In addition to that, the withdrawal comes in days after there has been a series of arrests and abductions of billionaires linked to the battle over the control of the sugar miller.
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Vartox through its lawyers stated that it no longer wanted to challenge a 20-year lease awarded to Sarrai Group in 2021.
“Take notice that Vartox Resources Inc., the third respondent in these proceedings hereby wholly withdraws its application dated December 25, 2022,” the filed application read.
Arrests Issued by the DCI
Coincidentally, the company chose to withdraw from the case just days after the CEO of the bank they inherited Mumias Sugar’s debts from was arrested. He was arrested and questioned on suspicion of money laundering.
Vartox’s involvement in Mumias lease battle was central to Victoria Commercial Bank (VCB) CEO Yogesh Pattni appearing before the Directorate of Criminal Investigations (DCI), and sleuths seeking to investigate the lender’s shillings and dollars accounts.
At the same time, it was the reason why DCI initially took West Kenya Sugar Company chairman Jaswant Rai from Jomo Kenyatta International Airport for questioning.
The DCI had filed a case seeking a warrant to investigate Victoria Bank in June this year. The application filed before the Milimani magistrate’s court indicated that the detective’s interest with the lender revolved around alleged money laundering as well as conspiracy to defraud, and fraud in relation to tax.
Vartox, argued in the appeal that the 20-year lease to Sarrai Group based in Uganda was a move by another financial institution. According to them, the other financial institution wants to deny other bidders a chance to manage this sugar company.
Read Also: Rai Released After Being Abducted
President Ruto Threatens
The President of Kenya, William Ruto spoke with Kakamega County residents yesterday. He revealed that sugar tycoons were exploiting Kenyans by having cases in court dragged on for years.
He warned the tycoons that they had three options; to move out of the country, to go to jail, or to go to heaven.
“I have told them to withdraw the court cases before we start planning the sugar industry again,” Ruto stated.
Part of the questions Kenyans are asking themselves is, why are the supermarkets filled with Mumias Sugar packets yet the sugar mill claims to be ailing and almost dead? They attributed this controversial idea to the existence of tycoons.
