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{
    "id": 1485399,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1485399/?format=api",
    "text_counter": 263,
    "type": "speech",
    "speaker_name": "Kiambaa, UDA",
    "speaker_title": "Hon. Njuguna Kawanjiku",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker, for giving me this opportunity. I rise to support the Report of the Committee on Delegated Legislation on the enquiry of the alleged irregular and illegal grant of tax exemption to the Blue Nile Rolling Mills under SOFA. As we are aware, the Report culminates from the enquiry carried out by the Committee upon Request for a Statement that I made to the House. In my Statement, I had sought the indulgence of the Committee to look into concerns relating to the legality of the SOFA, which had illegally exempted taxes returns of billions of shillings belonging to the people of Kenya to one company called the Blue Nile Rolling Mills. I have had a chance to pursue and certainly examine the Report of the Committee. I rise to support its findings as contained in the Report, particularly from paragraph 114 to 121. The Committee has established that the SOFA was unconstitutional for violating among other provisions Article 35 on access to information and Article 201(a) on openness and accountability in public finance. The circumstances under which the SOFA was executed with the Blue Nile Rolling Mills were shielded in secrecy in clear violation of fundamental pillars of our Constitution on openness, good governance, transparency, accountability, integrity, access to information, and in particular public participation. How one can exempt a company from paying hundreds of billions without disclosure is baffling and certainly cannot stand the test of our Constitution. What is even more worrying is that the SOFA, which is a statutory instrument, ought to have been submitted to this House for scrutiny in the manner provided for by the Statutory Instruments Act. This was never done. Consequently, the SOFA is certainly illegal, null and void for being contrary to the provision of the Statute. This House was bypassed to grant tax exemption in billions to a private company in complete disregard of our oversight role. This cannot stand the test of the Constitution. I agree with the recommendations of the Committee. In light of the foregoing, I support the recommendations of the Committee that the relevant bodies should take necessary legal action against all parties that were involved in the whole process of the irregular tax exemption. Additionally, I support the Committee’s recommendation that the Cabinet Secretary for the National Treasury and Economic Planning should submit guidelines for implementation of the SOFA to this House so that we do not encounter such illegalities in the future. In conclusion, allow me to thank the Committee. They did an amazing job. They made sure they looked into that enquiry. They gave a fair hearing to the company, the Ministry of National Treasury and Economic Planning, and everyone who was involved in passing this agreement. It was a serious oversight that this House was not involved and public participation was not conducted noting that they were exempting billions of money from the taxpayers. You are denying Kenyans an opportunity to earn this money by giving it to one individual without even consulting the people's representatives in this House. I, therefore, congratulate the Committee. Its findings should be taken into consideration. The Cabinet Secretary for the National Treasury and Economic Planning should provide guidelines on how exemptions should be carried out in the future in case we find ourselves as a country in a similar position. It cannot be allowed that people decide on issues that affect our country without involving this House. The mandate of this House is to pass laws 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."
}