Confusion as NOCO is split into two

Written by Rosemary Wachiye 2011-11-24 10:27:00 Read 333 Times

Mr. Kingsley Mutali (R) receiving the New NOCO certificate from the company's new secretary  Julius Khakula. [Photo|Rosemary Wachiye|West Fm] Wrangles in the Nzoia Outgrowers company (NOCO) has resulted into formation of splinter groups one headed by Kingsley Mutali while the other headed by Humphrey Mukania.  The split has thrown sugar cane farmers from the region into confusion as they do not know which group to subscribe to. The confusion deepened after embattled Mutali emerged with certificates of the newly registered New NOCO on Wednesday November 23 at Pan Paper grounds in Webuye at a meeting with farmers where it was also used to launch and introduce its structures and policies. Notable during the meeting was former KSB chairman Saulo Busolo who is currently the director of the KSB Nzoia zone. Mutali now recognizes himself with New NOCO after Mr. Mukania was elected to head the NOCO but controversy arose as to the manner in which it was done with Kingsley going to the courts to seek for a solution. The New NOCO General Manger, Mr. Kingsley Mutali stated in the meeting that the company act states that for any company to exist legally there it has to have a company secretary which he said the group headed by Mukanai lacks. Mr. Mutali introduced Mr. Julius Khakula as the current Company Secretary and called upon the farmers to ignore the other NOCO stating that the one recognized by the government under the Kenya Sugar Board is now the New NOCO. “This is the only company that is recognized under Kenya Sugar Board which registered officially last month, farmers should ignore the other NOCO as it is not recognized anywhere, it doesn’t follow the company’s act and hence it’s not legal,” said Mr. Mutali. However, the offices remain unchanged. Mr. Mutali also added that in the previous Annual General meeting with the cane farmers at the Mabanga Farmers training Centre on June 25th 2011, the farmers agreed to change, NOCO from NOCO owned by guarantors to being owned by shares. He stated that the KSB also supported the transformation of all farmer companies to be changed to be of shares dominated by farmers and therefore that the New NOCO was following suit. “The New NOCO is the handing over of the company to the farmers as the main share holder just the way farmers had suggested earlier in the previous AGM and it is also in line with the KSB proposal of companies being owned by shares of farmers,” said Mutali. He added that all the NOCO company assets including the tractors, activities and all business are to be changed to be under the New NOCO management. Mr. Mutali has complained of Nzoia Sugar not remitting funds to NOCO and yet it has continued to deduct the funds from the farmers. He adds the last time they received the funds was around 1.2 Million in October. The Director of Kenya Sugar Board in Nzoia zone, Mr. Saul Busolo, called upon the workers to look at sugarcane farming as a trade and commercial business and therefore sell their cane to the best bidders. Busolo also called upon the Sugar factories to be ready for completion in the free market since those who offer the best prices per tone will get sugarcane. “I want the farmers to look at sugarcane farming as a commercial trade and by doing so they will make profits from the sale of their cane as compared to the way they are currently doing things as if they owe a certain firm and yet it doesn’t offer the best deal,” said Mr.Busolo. Busolo also stated that through the New NOCO they will negotiate a new contract whereby the farmers and the cane crushers meet at the weighbridges to avoid complains from the farmers about their cane being reduced in weight in their absence. He demanded that Nzoia Sugar Company increases the sugarcane prices per tone to be Sh.7, 000 for the farmers to benefit from their cane farming. “The cane prices should be increased following the increase in the sugar prices that have gone high and therefore the producers of the product should benefit also from their hard work,” said Busolo. He also suggested that the millers are the ones supposed to meet the transport costs of the cane from the farmer’s farm to the mill and the farmer is not to be deducted transport costs. On the issue of privatization of Nzoia Sugar Company Busolo stated that at the moment there is no privatization commission set in the country and therefore for the company to be privatized it will have to wait for such a commission to be formed first.