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BY LUKE KAPCHANGA DN/WEBUYE CORRUPTION 8/3/2005
The government should move in and investigate management of Nzoia sugar company over its continued
deduction of presumptive tax which was abolished in the year 2000.
The chairman of Nzoia outgrower company (NOCO), Mr John Musakali called on the anti-corruption authority
to probe the company because farmers are being deducted the presumptive tax.
Mr Musakali said farmers have lossed close to over shs.120million in the abolished tax to the factory which has to be
repaid with immediate effect.
He complained that the management has been deducting the money against the governments directive and those
behind the scandal should be prosecuted.
Speaking at the NOCO offices, the chairman gave the management at Nzoia 7 days to start refunding the money to farmers
or they take action to paralyse operations at the factory.
The official said the presumptive tax which is 2% of the gross pay of cane proceeds was supposed to go to the government
but as the miller continued deducting the money it remained with management.
He accused the management for stealing farmers money due to ignorance and were going to use all means to get it back.
Mr Musakali complained that since the government released shs.300million in April last year to clear the farmers accumulated debts
the records have been tampered with and the payment system is in a mess.
He claimed the farmers files got lost to confuse them from getting the correct payments of their cane proceeds and this also
gave way for them not to complain about illegal deductions.
He blamed the managing director and chairman for not giving right information on the disapearance of the records leading to the
farmers suffering and poor pay.
At the same time trouble erupted at Nzoia factory when cane cutters boycotted harvesting and torched cane to protest against being
hired by contractors.
A company employee was stripped naked and beaten by angry canecutters at the companies nuclieus estate when she told them to register
with new contractors.
The mob of canecutters mobilised their collegues in other farms to boycott the harvesting as they set the crop on fire.
Last week over 100 hectares of under age cane was burnt and is rotting on the ground because it could not be crushed.
Sources at the company said that management is revising the contracts of cane cutters so that they are recruited and hired
by sub-contractors to have them not answerable to the company.
There are claims that top managers have won the tender of hiring and supplying canecutters who are also opposed to the arrangement.
The managing director Mr Josphat Akoyo told the nation when they sought comment through his secretary that there is no problem.
He refused to talk to the press saying that he was busy with the board members.
BY LUKE KAPCHANGA DN/WEBUYE CORRUPTION 8/3/2005
The government should move in and investigate management of Nzoia sugar company over its continued
deduction of presumptive tax which was abolished in the year 2000.
The chairman of Nzoia outgrower company (NOCO), Mr John Musakali called on the anti-corruption authority
to probe the company because farmers are being deducted the presumptive tax.
Mr Musakali said farmers have lossed close to over shs.120million in the abolished tax to the factory which has to be
repaid with immediate effect.
He complained that the management has been deducting the money against the governments directive and those
behind the scandal should be prosecuted.
Speaking at the NOCO offices, the chairman gave the management at Nzoia 7 days to start refunding the money to farmers
or they take action to paralyse operations at the factory.
The official said the presumptive tax which is 2% of the gross pay of cane proceeds was supposed to go to the government
but as the miller continued deducting the money it remained with management.
He accused the management for stealing farmers money due to ignorance and were going to use all means to get it back.
Mr Musakali complained that since the government released shs.300million in April last year to clear the farmers accumulated debts
the records have been tampered with and the payment system is in a mess.
He claimed the farmers files got lost to confuse them from getting the correct payments of their cane proceeds and this also
gave way for them not to complain about illegal deductions.
He blamed the managing director and chairman for not giving right information on the disapearance of the records leading to the
farmers suffering and poor pay.
At the same time trouble erupted at Nzoia factory when cane cutters boycotted harvesting and torched cane to protest against being
hired by contractors.
A company employee was stripped naked and beaten by angry canecutters at the companies nuclieus estate when she told them to register
with new contractors.
The mob of canecutters mobilised their collegues in other farms to boycott the harvesting as they set the crop on fire.
Last week over 100 hectares of under age cane was burnt and is rotting on the ground because it could not be crushed.
Sources at the company said that management is revising the contracts of cane cutters so that they are recruited and hired
by sub-contractors to have them not answerable to the company.
There are claims that top managers have won the tender of hiring and supplying canecutters who are also opposed to the arrangement.
The managing director Mr Josphat Akoyo told the nation when they sought comment through his secretary that there is no problem.
He refused to talk to the press saying that he was busy with the board members.
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