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{
    "id": 1021707,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1021707/?format=api",
    "text_counter": 283,
    "type": "speech",
    "speaker_name": "Seme, ODM",
    "speaker_title": "Hon. (Dr.) James Nyikal",
    "speaker": {
        "id": 434,
        "legal_name": "James Nyikal",
        "slug": "james-nyikal"
    },
    "content": "For example, one common thing they found among all corporations is lack of security or ownership of properties like buildings, land and equipment. Most corporations lack properly secured properties, do not have title deeds and often this leads to losses. If you look at mono- corporations, they have huge tracts of land without title deeds. This has led to massive losses and irregular acquisitions of land. In the end, people have suffered because those lands were acquired using improper ways and innocent buyers have gotten into problems. For this, they have made recommendations addressing how those agencies can be assisted. They found issues concerning management of contracts. We all know that procurement in particular is the conduit of massive losses that this country suffers in our State corporations. They have brought out issues like single-sourcing, mis-procurement, delay in procurement and not linking procurement to time processes like buildings. So that, in the end, money is lost. In some cases, because of mis-procurement, corporations lose money because they have to pay out since procurement was not properly done. I find this commendable. Even when there are losses, they found out that many corporations do not use the court processes properly. There are delays in taking matters to court. When they go to court, they do not use the appropriate offices. They found out they use private law firms and when they use the Attorney-General’s Office, there is poor or weak representation. Again, the State corporations lose resources because of this. They also found out that financial management in our corporations is a general area of weakness. What they noticed and brought out is that many corporations seem to rely on State grants and funds. They seem to behave as if even if they do not manage their funds well, they will be bailed out. For example, with regard to Kenya Airways (KQ), we know the number of times we have bailed them out. We are now planning to take it over. State corporations seem to realize that even if they mismanage their funds, they will not run down. They will be bailed out using State grants. This is an issue they have brought out. Even in the accounting management, you find that most State corporations are reluctant or unwilling to submit their accounting documents for proper auditing - again, resulting in huge losses. So, they have made appropriate recommendations in all these areas and I applaud them. As I end, I want to say if those general weaknesses are addressed and recommendations implemented by the State corporations and agencies that oversee them like ministries, this will go a long way in resolving some of the issues we experience. I find this Report educative in giving us an overview of what the problems are in our State corporations. I call upon the Committee on Implementation to take this Report and ensure it is implemented. They should take the agencies charged with implementation to task. If this is done, we will not have to keep chasing every State corporation. They looked at about 40 corporations and have addressed the same general issues. So, the Committee on Implementation should take this Report and implement the recommendations since this will go a long way. With that, Hon. Temporary Deputy Speaker, I support this Report."
}