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{
    "id": 122506,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/122506/?format=api",
    "text_counter": 352,
    "type": "other",
    "speaker_name": "",
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    "speaker": null,
    "content": "This is a very sad story of how a joint venture went in a bad way just because those investors knew very well that the Government would provide guarantees since Government holds 34 per cent of the companyâs shareholding. This industry could always be classified as strategic in the sense that it was the only one that was manufacturing paper in the country. So, its collapse has really put us in a very awkward position. Those investors looted the company and made it bankrupt. Mr. Temporary Deputy Speaker, Sir, those people, literally, made the company insolvent by taking away its money through transfers, over-pricing and all other manner of milking it dry, knowing very well that the Government would back them up. When they realised that it was taking too long for the Government to back them up, they quit in a huff. It might as well have been good that they quit because, even if we had continued putting in more money, it would not have made any difference. So, we are aware of the suffering of, particularly, the people in Webuye but we wish to plead with them, and with the hon. Member of that area, that we are still committed to reviving the factory. It is taking a little longer than it was anticipated, but we hope to achieve something. I do not want to give a time-frame but, before December, we should be able to say whether those other lenders will be coming forward to write-off the loan. We can then proceed with the Cabinet Memo and set a proper date for sale under receivership. So, the matter is in progress. We are waiting for further write-offs. Mr. Temporary Deputy Speaker, Sir, this Report is good. As I said, I commend the Committee for keeping the Government on its toes. With those remarks, I beg to support."
}

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