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"id": 188936,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/188936/?format=api",
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"type": "speech",
"speaker_name": "Mr. Michuki",
"speaker_title": "The Minister for Environment and Mineral Resources",
"speaker": {
"id": 183,
"legal_name": "John Njoroge Michuki",
"slug": "john-michuki"
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"content": "to undertake the audit. In their report, Deloitte & Touch noted that as at 31st December, 2006, the total non-performing advances were Kshs58 billion, made up of Kshs20.3 billion Government initiated loans and Kshs37.7 billion commercial loans. 1940 PARLIAMENTARY DEBATES July 17, 2008 Mr. Speaker, Sir, the Government initiated loans were given to public institutions as follows: On 27th September, 1990, the Kenya Meat Commission received an overdraft of Kshs120 million, which was followed by a guarantee of Kshs87 million. The balance as at the end of the year 2006 was Kshs3,753,508,112. On 29th November, 1991, Cyper Enterprises Limited was given an overdraft of Ksh90 million which by December, 2006, rose to Kshs916,808,032. On 22nd February, 1990, the Lake Basin Development Authority took an overdraft of Kshs3 million. Over the years, it had developed because of accrued interest, to Kshs909,386,000, and a few shillings on top. On 10th May, 1991 Nzoia Sugar Company took an overdraft of Kshs100 million. It was Kshs886 million as at the end of 2006. Muhoroni Sugar Company, 24th February, 1989 took an overdraft of Kshs60 million and a loan of Kshs15 million, the total loan of Kshs28.5 million, letters of credit of Kshs7 million and guarantees of Kshs0.45 million. At the end of 2006, the amount due from Muhoroni was Kshs1,101,591,944. Border taxes in 1989, cash BP£3 million. It is now almost BP£1.5 billion. Then the Kenya Taxi Cab London-look taxis in 1989 cash against BP£3 million and the loan is escalating all the time. Mr. Speaker, Sir, then we come to direct credit to the same companies. Letters of credit BP£5.75 million. Then we have Spareworld Limited. I will explain who these companies are in greater detail, because it is important that you know how these things are, so that as hon. Members make statements in this House, they bear in mind that they are hon. Members. Those were letters of credit and for Spareworld Limited, there were spare parts bought for the Nyayo Buses at that time. Somebody was given a letter of credit to import spare parts for the Nyayo Buses and the whole thing continued. Then we have Duke Kenya Limited in the same group of companies. There was bills discounting. I do not know how one discounts bills of this magnitude at ago. These were Kshs34 million and letters of credit of Kshs10.5 million. There was the Government car loan to civil servants. Car loans guaranteed by the Government of Kenya up to Kshs200 million which, in 2006, stood at approximately Kshs448 million. Mr. Speaker, Sir, this is the story of those companies. The report by the auditors came out with a few points. First, the Government or related entities had requested facilities through formal applications, or other duly authorized correspondences, and that actual disbursements took place. Secondly, letters of offer were issued by the National Bank of Kenya (NBK) and accepted by the Government and/or related entities for some of the facilities. There were other correspondences acknowledging the debt by the entities and the Government. Thirdly, the Government acknowledged the debts and committed itself to pay the same through the annual letters issued to the NBK by the Minister for Finance at that time. After a thorough review of key issues by the restructuring committee an agreement was signed on 31st May, 2007 providing for the issuance of non-negotiable and non-tradable bonds of Kshs20 billion as provided for in the 2006/2007 Financial Year Budget, and shown in the Printed Estimates as approved by Parliament. Mr. Speaker, Sir, the hon. Member for Nambale raised several questions, which gave the impression of wrong doing. Allow me to address them one by one."
}