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{
    "id": 1285159,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1285159/?format=api",
    "text_counter": 508,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": " The Committee took a lot of time to deliberate on this matter before we came to this conclusion. To take Members through, Clause 44 has two sub-sections. Clause 1 reads as follows as per the Order Paper: “Any proceeds from the sale of a public entity’s shareholding shall be deposited in a special interest-bearing account established for the public entity in order to protect the erosion of the balance sheet of the public entity.” This protects the proceeds from the sale of a public entity. We are talking about billions of shillings benefiting the bank without necessarily getting interest. That is why we are putting this requirement that it will have to be an interest-bearing account. In the original Bill, Clause 44 had another clause that read: “Subject to the approval of the Cabinet Secretary, the proceeds under Subsection (1) may be – (a) used to liquidate the debts of the State corporation; (b) used to pay the costs of financial organisation in restructuring of the State corporation; (c) used to pay for capital investments by the State corporation; (d) used to defray the cost incurred by the Authority in the privatisation, which payment shall not exceed five per cent per annum…” This proposal is deleting that subsection because this original Bill would have meant we have, for example, sold off Kenya Airways, but we have given the Authority permission to use the proceeds of that sale to pay consultants and all manner of expenses, as is in the original Bill. This would have meant that no money would go to the Consolidated Fund Services account because knowing how these officers would operate, they would spend all the proceeds of that privatisation."
}