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"id": 203628,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/203628/?format=api",
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"type": "speech",
"speaker_name": "Mr. Odoyo",
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"speaker": {
"id": 340,
"legal_name": "Peter Ochieng Odoyo",
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"content": "Mr. Deputy Speaker, Sir, the Government capacity to borrow from the local market which is usually guided by the budget deficit raises a question. It raises a question whether the Minister, in his wisdom, is merely looking for a way out to bring, through the paperless society, ways and means of robbing the poor Kenyan wananchi through Goldenberg-like scam. I am not satisfied that the Minister has put in place the internal mechanisms for monitoring such cashless and paperless borrowing. Is the Minister, in his wisdom, truly being honest to this House that, indeed, he is merely upgrading the system to bring it at par? Is he further creating avenue for stealing from the poor wananchi ? Mr. Deputy Speaker, Sir, today the CMA, as already indicated by another speaker, has brokers selling stocks so fast before the original buyer is able to recover. For example, the Kenya Reinsurance stock, even before these things were deposited, the stock was already being sold. That could only have happened through such similar amendments that the Minister wants today. Things like electronic control are ways in which the Minister is misleading this House. Mr. Deputy Speaker, Sir, I believe that before the Internal Loans Act is amended, there are several other laws and regulations that the Minister needs to bring to this House. For example, cyber laws that control electronic transactions. The CMA needs to be strengthened to monitor all these people trading. The Minister needs to amend other aspects of the Central Bank of Kenya Act. Unless the institutional capacity is put in place, amendments of the Internal Loans Act, may be a further avenue for the looters, who the Minister may not be aware of, to take full advantage of weaknesses in the system. The institutional capacity is not there. Mr. Deputy Speaker, Sir, my appeal to the Minister is that, such a law requires him to inform the House about other laws that must be amended, so that we can safeguard Government money. September 18, 2007 PARLIAMENTARY DEBATES 3999 Further, Mr. Deputy Speaker, Sir, it is well known that when you borrow excessively, you print money. You create inflation. This amendment will make it very easy for the Minister to borrow as he wishes. In fact, he can trade left, right and centre on capital markets and on paper and cashless society at such a level that, by the time we realize, this country and taxpayers would have lost a lot of money. I, therefore, appeal to the Minister, and especially the person who seconded the Bill, Ms. Martha Karua to, please, use her legal capability, together with the Attorney-General, to advise us on which other laws need to be amended, so that we can protect our country and not have another Goldenberg or Anglo Leasing. It is in the record of this House that we amended some laws so that we do not look after instances that happened before 2003. The Minister for Finance should continue to lead us in the right direction, even though we accept that he has got a 90-day term. Be that as it may, we appeal to the Minister: Please, protect this country's money! It is taxpayers' money! That is my plea to the Minister. Mr. Deputy Speaker, Sir, this particular amendment raises the question of external loans. Many a times, internal and external loans are borrowed for different functions. But to amend the Internal Loans Act without affecting the external loans is misleading because there is no balance. What you may want to allow in internal loans, you may not want to allow for external loans. What you may allow in external loans, you may not allow for internal loans. Where is the balance between the two? Finally, Mr. Deputy Speaker, Sir, the amendment to the Central Bank Act to enable the Central Bank to monitor the capacity of the Government to borrow must be put in place. If we do not do that, this Internal Loans Act will enable the Minister to borrow well beyond the capacity of the Government to repay. Now that we are facing elections, that borrowing needs to be looked at carefully. With those few remarks, I beg to oppose this particular amendment, before the other amendments to the Central Bank Act, Capital Markets Authority Act and the Investments Act are put in place."
}