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{
    "id": 132897,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/132897/?format=api",
    "text_counter": 268,
    "type": "speech",
    "speaker_name": "Mr. Kosgey",
    "speaker_title": "The Minister for Industrialization",
    "speaker": {
        "id": 177,
        "legal_name": "Henry Kiprono Kosgey",
        "slug": "henry-kosgey"
    },
    "content": " Mr. Deputy Speaker, Sir, the long and short of it is that we are still negotiating with the long-term and short-term lenders and they are very difficult. They have given conditions and one of the conditions that the short-term lenders have given is that they be allowed to appoint a receiver of their choice but the Government to underwrite the receivership cost, indemnify them against any future claims, renew the expired insurance cover for the company’s assets and pay rent to the landlords of all the premises occupied by the company. Also, that the receivership costs which will be treated as a loan from the Government to the receiver remains subordinate to the lenders’ debt when the company starts operating. The KPLC and Kobil, the major suppliers of oil and energy, have said that they want to be paid before they can even think of starting. So, we are still negotiating and the process has been very painful. One other legal question which we have not been able to answer is that legally this company is still owned 54 per cent by OPIL. If you revive it the way it is by putting a joint receivership and it is revived, they have a legal right to say” Thank you very much, you have revived our company, we have 54 per cent shareholding and anybody who has put in money, we will treat it as a debt!” . We have sought the Attorney-General’s opinion on how to treat this shareholder who ran away. I think we are almost reaching a conclusion and I will not read the remaining part of the comprehensive Statement. Even yesterday, as we passed the Vote for the Office of the Deputy Prime Minister and Ministry of Finance, we saw that we had been allocated Kshs800 million. We have already stepped up our current budget for the revival of Pan African Paper Mills in Webuye. Negotiations are on-going and the company will be operational maybe in the next two months. I. Hon. Members can ask supplementary questions because I have a lot of information."
}