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{
    "id": 1134381,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1134381/?format=api",
    "text_counter": 187,
    "type": "speech",
    "speaker_name": "Sen. (Eng.) Hargura",
    "speaker_title": "",
    "speaker": {
        "id": 827,
        "legal_name": "Godana Hargura",
        "slug": "godana-hargura"
    },
    "content": "those are residents of the same county which is incurring those kinds of injustices against them. Madam Deputy Speaker, lastly, is the issue of outstanding Government guaranteed debts to state corporations. It has been said clearly about Kenya Airways, but I would like to comment something about Kenya Power Company. If you look at Kenya Power Company, it is a profit-making organization because it does not produce, but buys power from power producers and sells to the consumers at a higher price. It is supposed to be making profit. Nonetheless, because of corruption which has permeated all parts of the institutions of Government, the procurement sector of Kenya Power Company has been one of the most corrupt and we know the issue of purchasing equipment that is not usable like the transformers. This is money being lost to the extent that this kind of organization which has little input in terms of production, but buys powers and sells, is making losses. It all comes from the power purchase agreements they have with the independent power producers. We have seen the biggest generator of power, Kenya Electricity Generating Company PLC (KenGen), being paid less than the independent power producers several times because of the agreements they have. There is a case that has been in the news in the last two months. The Kshs18 billion we are paying to an independent power producer; Lake Turkana Wind Power Project because of what they call deemed generated electricity. The Auditor General did an audit and produced a report in April this year 2021 specifically on that amount of money which we are paying. We have paid Kshs10 billion and the rest is factored into our bills. The rates at which they have agreed, which is supposed to be a fixed rate for 20 years, have been increased so that they can recover that money from our bills. It has been passed to us and the worst part which seems not to be coming out in the press is the Auditor General said that when this project started, the power line, which is the cause of the problem, was supposed to be the responsibility of Lake Turkana Wind Power. Along the way, KenGen was created. By the time KenGen came into the picture the procurement process for the power line had started. It a clear case of conflict of interest. Lake Turkana Wind Power was involved in the procurement of the contractor. They did the survey of the line themselves, then, they were involved in the procurement of the contractor. This is what the Auditor General has said. By the time KenGen was taking over, already ISOLUX had been identified, and this is the company that went bankrupt and caused this delay. It has been identified and the report is clear that the technical and the financial evaluation of that company was the responsibility of Lake Turkana Wind Power. They handed over the process to KenGen who did not do another procurement, but took up from there. The company which Lake Turkana Wind Power had identified is the one which went bankrupt. Now, Lake Turkana Wind Power is using that excuse that ISOLUX went under and the process delayed. This is why we are now paying that kind of money. Madam Deputy Speaker, I support the Report of the Committee with the recommendations."
}