AGRICULTURE CABINET SECRETARY URGES POORLY PERFORMING PUBLIC SUGAR COMPANIESTO BE EFFICIENT IN SUGAR PRODUCTION AND WARNS AGAINST RELIANCE ON GOVERNMENT FINANCIAL BAILOUTS
By Bosco Magare
Public owned sugar companies have been warned that the government will no longer bailout poorly performing mills including other state enterprises and urged millers to enhance efficiency of factories to produce more sugar for the market.
The warning was issued by the Cabinet Secretary (CS) for Agriculture, Livestock & Fisheries Willy Bett during a familiarization tour of Chemelil Sugar Company.
Speaking during a meeting held at the company’s boardroom with the firm’s top management led by Managing Director Charles Owelle, the CS urged the managers to focus more onefficient production of sugar by the factory to satisfy the domestic market demand for the product.
Bett said Chemelil Sugar Company and other public owned mills including various state run enterprises can only survive the current competitive market environment by management and employees refocusing their attitudetowards their work ethics and by adopting an efficient business oriented approach in their operations.
The CS said the continued poor performance of state owned business corporations including other government institutions which are not making profits is wanting and very shameful .
‘’ There is urgent need for you as the top management team of Chemelil Sugar Company , to reassess yourselves and employees work ethics and attitude towards the same, ‘’ Bett said.
The CS advised the top management of the company to stop accusing and pointing fingers at one another and instead interrogates themselves especially as regards their atitude and work ethics.
‘’Let us ask ourselves whether each one of us is giving the best of our skills collectively for the benefit, good performance and efficient production of sugar by the company for the market, ‘’ Beth challenged the firm’s top managers.
Bett said the current poor performance by government owned enterprises and agencies is not because of low remuneration and salary payment to employees adding that staff of these institutions are better paid than those in the private sector.
‘’ Today , there is an emerging trend in which as government we are seeing a shift and movement by workers in the private sector into state owned institutions attracted by the existing good remunerations and salaries, ‘’ Bett said.
He said once the top management of the company and other government run institutions adopt an individual and collective positive attitude to work it will be possible for these state agencies and enterprises to perform well and meet the mandates for their existence and establishment.
‘’ Ladies and gentlemen, we have a country to protect for posterity. So let us change our workethics to be more efficient in our performance in order to safeguard these institutions for our children and future generations. Let us put in extra working hours at our work stations’’ he urged.
The CS said he is aware that a state owned sugar firm like Chemelil Sugar Company has certain challenges such as huge debts which are historical and not the creation of the current management team.
However, Bett advised the company’s top management to stop focusing on these challenges and instead look at them as opportunities to improve and perform better.
‘’ As government we are aware that most public owned sugar companies have problems which tend to be internal unlike privately owned mills. But, state owned mills have very skilled and experienced employees and workforce which should productively and productively be used for the good performance and survival of these firms,’’ Bett said.
Bett said it is only through such a refocused work attitude in government enterprises that they will be able to survive the competition of the current market place and avoid the continued reliance on bailouts from the state.
He warned that the government will not always be there to bailout poorly performing state owned companies, agencies and enterprises.
‘’ Government has reached a dead-end on the issue of bailout for state owned firms. And, the recent removal and scrapping of the Sugar Development Levy (SDL) by the government is a strong statement by the state that it is no longer going to be bailing out these institutions.
The CS pointed out at the example of poorly performing and ailing Uchumi Supermarket as hewarned state owned sugar companies not to be mired in the same situation.
‘’ The sugar industry generally has money which flows like manna. And sugar is the most sought product just like cocaine. So as management of these firms you need to take advantage of this demand for your product-sugar- by producing more and efficiently.
He said efficient production by the company and other public owned factories will also enable them to meet their obligations to stakeholders and more particularly cane farmers adding that ‘’ therefore there is no reason for public owned institutions not to make money and declare profits.’’
‘’ Resources gravitate where there is money. And thus cane farmers will want to do business with you and deliver to your factory as long as you timely pay them for their delivered produce. But, it pains me to see that the lives of cane farmers are deplorable due to poor management and performance of state run sugar mills. The suffering of cane farmers in the hands of crisis and financially challenged once prosperous Mumias Sugar Company pains me, Bett said.
Bett urged management of state owned sugar companies to make deliberate efforts to ensure cane farmers are timely paid so that they are able to improve their welfare and meet their individual obligations such paying school fees for their children’’ Bett said.
The CS said the establishment of the Cane Testing Unit (CTU) at Chemelil Sugar Company and other state owned mills is also a move in the right direction which will soon ensure millers make payments which are precise and equitable to both mills and cane growers.
Bett said apart from the poor performance of state owned institutions, these organizations are also currently bedeviled and gripped with a corruption syndrome.
He warned the management of these state firms against embracing corruption and corrupt practices since they are detrimental to the performance and survival of these institutions which have been established to meet various public objectives and mandates.
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Chemelil Sugar Company Limited