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"id": 1568387,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1568387/?format=api",
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"type": "speech",
"speaker_name": "Navakholo, ODM",
"speaker_title": "Hon. Emmanuel Wangwe",
"speaker": null,
"content": "trading status of KBC, which is not a good thing. Therefore, what do we recommend? Upon adoption of this report, KBC should submit a comprehensive report with the details of the loan to the National Treasury and the Auditor-General. The National Treasury should also comment on the status of the loan and advice on when they intend to write it off, if need be. On the issue of KBC, there are problems related to title deeds. The Corporation had title deeds for eight parcels of land. At the same time, it had 32 parcels without title deeds or other legal documents of ownership. The title deeds for LR. No. 209/5918, the Broadcasting House, still exists in the name of the old person. As a lawyer, you will agree with me that the title called Chief Secretary Colony and Protectorate of Kenya is a colonial reference to our titles, dating from before Independence. It is important that KBC gets its title. As it is now, it does not have it in the modern way. Therefore, valuing that property is not possible. The management was not able to value it because they say that the title is obsolete. I do not know the person who is supposed to handle it. According to them, they contracted a law firm, which is yet to issue a new title. This makes the whole issue messy and unacceptable to the Committee. Therefore, we recommended that the Accounting Officer at KBC should submit to the National Treasury and the Auditor-General an updated fixed asset register, detailing all the company’s assets with the respective information that needs to be disclosed. Why do we need this? When the title has not been valued, it means it is not posted in the accounts, as it has no value. Without a register of fixed assets, it is impossible to trace that property or its location. There is also the issue of inter-agency trading, where the Ministry could direct KBC to give part of its assets to a sister agency. In this particular case, five power generators valued at Ksh29 million were loaned by the Corporation, at the direction of the Government, to Kenya Electricity Generating Company PLC (KenGen) to alleviate the 2001 power crisis. However, the generators have never been returned to the Corporation. Once the assets were given out at the Government’s direction, someone ended up retaining them forever, and nobody followed up. Therefore, we felt it was important that, within three months upon adoption, EACC initiates an investigation into how the loaned generators to KenGen were procured, whether there was any malpractice in the initial procurement, and whether the generators were idle at the time of loaning. The findings should be submitted to the DPP. It is claimed that the generators were given, but there is no follow-up evidence to confirm this, nor were there any instructions. The management said they were instructed to give out the generators. So, we do not really know whether the generators were handed over to KenGen or not. There is also an issue at KBC affecting the going concern aspect. This relates to various organisations with which it entered into negotiations, particularly those in the broadcasting sector. Apart from the OECF loan of 1989, KBC has entered into negotiations with other organisations such as MultiChoice Africa, among others. Hon. Deputy Speaker, therefore, the entry into these negotiations has affected the operation positively and negatively. The Committee recommends that upon adoption of this Report, the KBC should submit to the National Treasury and the Auditor-General a comprehensive report with the details of all the organisations that have entered into commercial transactions with it for the purpose of going concern effects. Finally, the KBC model is good to adopt, but it has left the organisation in limbo without knowing whether to transact on its own or through the contracted agencies which it works with. It gives a positive return on one side but if it is not monitored well, it can lead to the extinction of the organisation. With those remarks, I thank my colleagues whom we sat with tirelessly in sessions together. I also thank the secretariat for taking their time and compiling this Report. I also thank the Clerk of the National Assembly for the effective support, through the Director of 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."
}