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{
    "id": 1174370,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1174370/?format=api",
    "text_counter": 1115,
    "type": "speech",
    "speaker_name": "Mvita, ODM",
    "speaker_title": "Hon. Abdullswamad Nassir",
    "speaker": {
        "id": 2433,
        "legal_name": "Abdulswamad Sheriff Nassir",
        "slug": "abdulswamad-sheriff-nassir"
    },
    "content": "minimum tonnage in the year 2020. This was by the time this audit was done. Our recommendation is that the National Treasury should renegotiate the entire payment arrangement with a view to discharging the KPA from the contract. Let it be a matter for the Kenya Railways Corporation (KRC). The burdens of one should not fall on another. We are also recommending that the EACC should investigate the signing of the payment agreement. There is nowhere throughout our investigations where we saw any approval from the mother Ministry, the Attorney-General or the Board. There are two signatures; that of the then Cabinet Secretary for Treasury, Henry Rotich, and the Managing Director, Gichiri Ndua. Let this be a lesson to other State officers who sign documents. These people will be hounded to explain how they put a whole State Corporation in jeopardy. Reports are going round that the Auditor- General was misled. We stand with the Auditor-General. My eyes have witnessed what was signed in the contracts. Clause 17.5 of the contract must be read within the entire payment agreement. From the outset, the agreement recognises the government of Kenya as the borrower. This is what the management says. They are saying that the KPA was not included; it is not so. Both the KPA and the KRC signed and agreed to be part and parcel of the contract. We recommend that the EACC investigates how we ended up getting into such a contract. We equally need to agree that the voice speaking now is speaking on behalf of all Kenyans. This particular agreement needs to be renegotiated. We have to. The Executive has to reverse the agreement. Another thing that is also important is that the KPA did not even have a loan arrangement. It had no copies of the preferential credit loan, which is the original SGR loan dated 11th May, 2014. They are just being told, “You are a third party and your role is simply to pay.” This is what it is. Lastly, before I request my sister, Hon. Mishi, to second, is the Lamu Port, which is another very ambitious project. The audit report had numerous queries, right from the way the contract was conceptualised. It was impossible for us to get to the bottom of the issue because the initiator of the Lamu Port project – the one who signed the contract – is the mother Ministry. Then in the middle of the process, the KPA was given an already signed and executed contract, and they were told the amount of money they had to pay to the company that was executing the contract. I want to state here that this particular company included the issue of the Lamu housing, including the berths and everything else. There are numerous audit queries here, however, unless we get to the genesis of how the contract started, this is a role that the next PIC will have to take with the same level of enthusiasm as we have. We have recommended that the Auditor-General should conduct a special audit on the Lamu Port matter to consolidate whatever the mother Ministry had already spent together with what the KPA had already spent. We cannot be able to judge just based on what the KPA had already done, because on the other part, the mother Ministry did something. Second is on the legality of just taking a contract and passing it over to a state corporation. This is going to be my last normal state corporation report. I, once again, with a lot of humility, want to thank members of my Committee. I have lived with them as brothers and sisters for a good five years. I thank the Office of the Auditor-General. It has exposed me to my next challenge and my next role of serving the people of Mombasa. It has exposed me on seeing where rot is,and where the rot should be sealed. I thank Parliament and all my clerks, from Mr. Evans Owanda, Mohammed Boru and the young attachés who were always with us, as well as the researcher. I couldn’t be more blessed. I was truly blessed to work with a very vibrant team which supported me and took me through a huge… I want to call this a passage into my next challenge The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}