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{
    "id": 141916,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/141916/?format=api",
    "text_counter": 468,
    "type": "other",
    "speaker_name": "",
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    "speaker": null,
    "content": "Mr. Temporary Deputy Speaker, Sir, we observed with concern the failure by the concessioner to meet its financial obligations even as per the concession agreement which required the concessionaire meet certain obligations such as payment of concession fees and rent for use of premises within the stipulated time. At the time of writing this Report, this company had not paid the concession agreement fee and the rent. In another case of misuse of State corporations’ assets, between 2000 and 2004, the management of the Communications Commission of Kenya (CCK) bought furniture and other household appliances for officers at a cost of Kshs5, 763,144. The Committee observed that the furniture in question could have been fully depreciated by the time the officers left the Board and the depreciated value should have been recovered from these officers. The Board acted in disregard of the Public Procurement and Disposal Act in approving this process. We recommend that the CEOs ensure that the Public Procurement and Disposal Act of 2005 is stringently adhered to in the disposal of corporations’ assets. We also recommend that depreciated values of assets be recovered from the officers. Mr. Temporary Deputy Speaker, Sir, we were also able to establish that corporations usually procured unusable goods. One of the cases was where some State corporations entered into contracts for purchase of goods that turned out to be unusable leading to wastage of public funds. Between 20th October, 1998 and 3rd November, 1998, the KFS Limited purchased stocks worth Kshs5, 695,960 for the Mtongwe II Ferry, when the company was already in the process of disposing this vessel. Similarly, the Coffee Board of Kenya (CBK) in the year 1997/98 purchased a computer and related equipment valued at Kshs36, 526,286. It is shameful to note that to date, the computer has not been commissioned for use even though the equipment has been depreciated in the books of accounts for the CBK. The Committee was concerned that no attempt was made to dispose of this asset. The Committee noted that the purchase reflected mismanagement and lack of foresight by the management of the CBK. We recommend that the CEO observes stringently the provisions of the Public Procurement and Disposal Act and adheres to it. We also recommend that the Inspectorate of State corporations should investigate the circumstances leading to the purchase and consequent dumping of this computer plant and make a report to the PIC by 31st December 2009. Mr. Temporary Deputy Speaker, Sir, we also established that some State Corporations were investing in non-core activities. We realized that some of the corporations were operating outside their core mandate for which they were formed. It was observed that between the year 1989 and 1997, the Industrial and Commercial Development Corporation (ICDC) incurred an expenditure amounting to Kshs63, 050,644 to construct a centre for human resource development at the Moi University and treated the amount as a donation. The Committee noted that the construction of the said buildings falls outside the mandate of the corporation. Even though social responsibility may have required the assistance of the corporation, the latter had no capacity to supervise the works and a donation as required by the university would have sufficed."
}