The government has suspended operations of Salima Sugar Company although the reasons behind the decision have not yet been made public.

The company, which has in the past been linked to allegations of corruption and financial mismanagement, has faced growing scrutiny from the public and oversight institutions over its operations and the use of state resources.

Commenting on the development, economic expert Derrick Mina expressed concern over the potential economic repercussions of the suspension.

He warned that the move could negatively impact production levels, employment, and government revenue collection.

Mina further urged authorities to communicate the rationale behind the suspension to the public, saying transparency is crucial in maintaining investor confidence and preventing speculation.