Dubai-based firm Vartox Resources Limited has announced its intention to withdraw an application previously filed with the court of appeal in connection to the 20-year lease granted to the Ugandan-based Sarrai Group for the management of Mumias Sugar Company.
The application had sought permission to present additional evidence related to the ruling issued by Justice Alfred Mabeya on April 14, which invalidated the 20-year agreement awarded to Sarrai Group. The company has now formally submitted a notice of withdrawal concerning this matter.
Justice Mabeya’s decision to cancel the deal was predicated on concerns that the arrangement favored KCB Group and disregarded the interests of Mumias shareholders and other creditors. As a result of his ruling, the company was directed to vacate the premises, and Ponangipali Ramana Rao was removed from his position as the Administrator of Mumias Sugar Company.
Subsequently, KCB Group contested Justice Mabeya’s decision and obtained a temporary order from the court of appeal to suspend the ruling.
In more recent developments, the high court appointed Harveen Gadhoke as the new administrator of Mumias Sugar Company, succeeding Kerato Marima whose term had expired. This appointment is effective for a period of one year.
The saga surrounding the management of Mumias Sugar Company underscores the complex legal and financial issues at play in these matters, as various parties vie for control and seek to address the company’s challenges amidst changing administrative roles and legal actions.