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"speaker_name": "Mr. Michuki",
"speaker_title": "The Minister for Environment and Mineral Resources",
"speaker": {
"id": 183,
"legal_name": "John Njoroge Michuki",
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"content": " Mr. Deputy Speaker, Sir, I wish to respond to a number of issues raised in the House last week by my friend, hon. Okemo, regarding the constitution of the Privatization Commission and its involvement in the Safaricom Initial Public Offer (IPO) and other privatization transactions. Mr. Deputy Speaker, Sir, with regard to a statement made by hon. Okemo, that the Minister for Finance constituted the Privatization Commission without reference to the relevant Committee of Parliament as provided for in the Privatization Act, I wish to respond as follows and request that hon. Okemo becomes attentive. 1. Through a letter No.CONF351/03 dated 24th September, 2007, addressed to the Chairman of the Committee on Finance, Planning and Trade, the Minister for Finance requested the Committee to approve the seven Members of the Commission who were supposed to be approved by the Committee of Parliament. 2. The Committee approved the list of the Members as per the Committee Chairman's letter Reference No.NA/DCF/FTP/2007(57) dated 5th October, 2007 and another letter of the same reference, except that at the end it is (58), dated 16th October. I wish to table copies of these letters before this House. It is attached to a copy of this Statement which I will hand over to the Clerk of the National Assembly. With regard to the statement made by the hon. Member that there is no evidence whatsoever that the Commission was involved in the privatization process as required by the law, I wish to clarify that as required by the Third Schedule of the Act, the Commission took over the preparation of the Safaricom IPO as an on-going transaction. Indeed, to bring the Commission on board, the Treasury team, during the Commission's first meeting held on 27th February, 2008, adequately briefed it on where the team had reached in processing the transaction. The Commission subsequently held meetings at various stages of the transaction and the Chairman of the Commission addressed various public fora, such as the announcement of the offer price on 14th March, 2008. The launch of the offer on 28th March, 2008 and the commencement of the trading of the Safaricom shares at the Nairobi Stock Exchange (NSE) on 9th June, 2008 was also announced by the Chairman. Similarly, the Chairman also addressed the Press on various occassions. Mr. Deputy Speaker, Sir, it is worth emphasizing that the Commission fully participated in the international roadshows and provided approval as required. I wish to table the remarks made by the Chairman of the Privatization Commission during the launch of the offer, as evidence of the Commission's participation. 2364 PARLIAMENTARY DEBATE August 6, 2008 Mr. Deputy Speaker, Sir, the hon. Member also requested that the House be informed about the involvement of the Privatization Commission in any privatization that has either taken place, or is contemplated to take place in the future. As I have already stated, the Privatization Commission has been involved in the Safaricom IPO transaction and will take over the privatization of the National Bank of Kenya (NBK), which was recently approved by the Cabinet. Mr. Deputy Speaker, Sir, I also wish to inform this House that as required by Section 17(1) of the Privatization Act of the year 2005, the Commission has prepared and submitted a privatization programme to the Treasury to facilitate the required Cabinet approval and subsequent gazettement. Upon the approval and gazettement of the programme, the Commission will proceed to prepare, as required by the law, detailed privatization proposals for each transaction to be approved by the Cabinet. The Commission will then proceed to implement the approved transactions. I trust that Mr. Okemo has been very attentive. Mr. Deputy Speaker, Sir, in the spirit of accountability and service to Kenyan people, I wish to reiterate my Ministry's commitment to keep this House fully briefed on this future privatization transactions and other important matters pertaining to the management of the economic and financial affairs of our beloved country. Indeed, I intend to initiate, at my own motion, discussions with the Committee of this House on a variety of matters that are within the purview of the Treasury, so that we move forward with the same frequencies. Mr. Deputy Speaker, Sir, I hope that this brings to rest this matter. I wish to lay the documents on the Table."
}