National Assembly Trade Committee chairman Bernard Shinali and members during a tour of the Internal Container Depot on June 10 to probe imported sugar that was allegedly unfit for consumption /DOUGLAS OKIDDY
The National Assembly’s Trade Committee also found KSB in contravention of the law after revelations that it is operating without a properly constituted board.
KSB currently has five board members out of the required 11 members.
The board has a quorum of eight members to transact business on behalf of the entity.
Without a proper board in place, MPs said KSB could not make some major decisions, including allowing the importation of raw sugar.
KSB was meeting with the committee chaired by Ikolomani MP Bernard Shinali, which has been probing claims of irregular importation of raw sugar said to be unfit for human consumption.
The sugar industry regulator was represented by its director for regulations and compliance, Samuel Kemboi, during the meeting.
Shinali, while pointing at the breach, noted that the board, as is currently constituted, cannot raise the quorum to make critical decisions like the importation of sugar.
“You have listed the names of a few board members, does that not make a fully constituted board, or quorum to deal on any matters of the board?”
Kemboi, while admitting the board is currently not fully constituted, noted that some members are yet to join the board.
Led by Mathare MP Anthony Oluoch, the lawmakers demanded an explanation on how KSB okayed the importation of raw sugar.
The MPs also noted that amendments to allow a proper procedure were not brought to the committee on delegated legislation for action.
According to Oluoch, the procedure provided for in KSB corrigenda, which allows amendment of typographical or small errors in legal notices or regulations and asked whether the KSB appeared before the delegated committee to correct the errors before they issued the license.
“Seems there is no correction on the face of it. So as it is, the board cannot validly issue a license until you correct the regulation. Remember what Article 94 says and this must go on record,” Oluoch stated.
“Nobody, including yourself has the power to do anything that has the force of law other than Parliament. Parliament has delegated that power to the committee of delegated legislation. You cannot correct that on your own free will.”
“We appeared in the committee to amend the errors of the regulations but we did not appear to correct it,” Kemboi responded.
Aldai MP Marianne Kitany also sought clarification on the regulations which provides that raw sugar is not allowed to freely trade in the market like normal free sugar.
“Where is that in the law that says you can bring raw sugar but do not freely trade in the market. He needs to respond where he gets this statement. He says the management of the sugar board are the ones that issue licenses. I would like him to guide me in the act where the management of sugar board is given the mandate to issue licenses,” Kitany said.
Kemboi defended KSB, saying their mandate stem from Section 12 of the Sugar Act.
He also explained that Mombasa Sugar Refinery applied to import 30,000 metric tons from Brazil which arrived and without a certificate of conformity and could not be discharged.
This led to the importation of another 27,000 metric tons from South Africa, which is subject to the investigations.
But the committee was not convinced. It accuses KSB of laxity, which MPs linked to loss of huge amounts of money and increased cases of cancer due to the circulation of commodities unfit for human consumption.
INSTANT ANALYSIS
MPs accuse the Kenya Sugar Board of irregularly allowing the importation of raw sugar in the country and making critical decisions without a fully constituted Board.
