Vartox Resource Inc., a company that bought the debts of a local bank in Mumias Sugar, has withdrawn its petition at the appeals court, just days after a round of arrests and abduction of billionaires linked to the battle over the control of the ailing sugar miller.
Vartox Resource Inc. through its lawyers stated that it no longer wanted to challenge a 20-year lease awarded to the Sarrai group in 2021 a day after President William Ruto issued threats to sugar tycoons over exploiting Western Kenya residents.
The firm was claiming billions from Mumias Sugar Company for loans inherited from the local commercial bank.
The bank had taken over the loans from two lending institutions which had advanced the money using Mumias Sugar’s ethanol and power generation plants as security.
“Take notice that Vartox Resources Inc., the third respondent in these proceedings hereby wholly withdraws its application dated December 25, 2022,” the application filed at the Court of Appeal read.
Coincidentally, Vartox Resources Inc. chose to withdraw the multi-billion case two days after the CEO of the bank where they inherited Mumia Sugar's debts was arrested and questioned on suspicion of money laundering.
In the appeal, Vartox had argued that the 20-year lease to Sarrai Group based in Uganda was a move by another financial institution to deny other bidders a chance to manage the sugar company.
The Dubai-based company while filling the petition had argued that the awarding of the lease to the group headed by Sarbi Singh Rai had not been made in a transparent manner.
The Sugar saga
Yesterday while addressing Kakamega residents, President William Ruto revealed that sugar tycoons were exploiting Kenyans by having cases in court that dragged on for years.
He warned that the tycoons had three options; Move out of the country, go to jail, or go to heaven.
“I have told them to withdraw the court cases before we start planning the sugar industry again,” Ruto stated.
Sarbi Singh Rai’s brother the Agriculture and Food AuthorityJaswant Singh Rai who runs Kabras Sugar was abducted in broad daylight on Saturday but released unharmed 24 hours later.
According to the Agriculture and Food Authority Jaswant also owns West Kenya Sugar Company Limited which had been listed as 3rd affected party.
