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{
    "id": 247388,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/247388/?format=api",
    "text_counter": 246,
    "type": "speech",
    "speaker_name": "Dr. Kituyi",
    "speaker_title": "The Minister for Trade and Industry",
    "speaker": {
        "id": 293,
        "legal_name": "Mukhisa Kituyi",
        "slug": "mukhisa-kituyi"
    },
    "content": " Thank you very much, Mr. Speaker, Sir. First, I will address the matters raised by Mr. Muite. The terms of engagement for the task force, whose membership includes my Permanent Secretary (PS), the Solicitor-General and the Investments Secretary, is to look at all aspects culminating in the collapse of Uchumi Supermarkets Limited. Any hon. Member with suggestions on issues to be looked at is welcome to present such to my Permanent Secretary. I want to assure the House that the issues that I have personally been interested in include the movement of the stocks of Uchumi Supermarkets Limited within 48 hours before the collapse of the company. Was there insider trading? Similarly, after the rights issue was announced in October, 2005, four Kenyan independent directors resigned from the Board of Uchumi Supermarkets Limited. They have never been replaced. What were the concerns? What were the issues that were related to that? Thirdly, the Managing Director of Uchumi Supermarkets Limited hired a South African consultant who was a key player on the sub-committee which moved up to the insolvency stage. Is there any conflict of interest between the people managing the process of killing Uchumi Supermarkets Limited and any subsequent interest? Four, the days when receivership means you are put in the hands of an undertaker are supposed to be behind us. A receivership attempts to rescue an enterprise. If it fails, then it can look to bury it. How do we, within a week, get into announcing the funeral of Uchumi Supermarkets Limited when we thought that we were taking cue to help turn it around? These are issues of public concern that we are interested in answers to. We have already informed the KACC to assist with investigations to establish whether there have been any fraudulent activities associated with the decline and collapse of this important public company. Mr. Speaker, Sir, whereas I share the sense that I have the responsibility of ensuring that the law is obeyed, and that the consumer, investor and public interests are protected in all registered commercial enterprises in this country, I have limits on managerial decisions of the boards of companies quoted at the Nairobi Stock Exchange. Similarly, as an under 10 per cent shareholder in Uchumi Supermarkets Limited, the Government cannot, on its own seek a unilateral bail-out solution. However, we are inviting suggestions of solution. Last week, I had a meeting with the leaders of a special purpose vehicle owned by Kenyans in the diaspora living in the United States of America who were looking into the possibility of raising money among themselves to redeem Uchumi Supermarkets Limited and not let it go out of the Kenyan hands. Similarly, members of the Kenya Private Sector Alliance (KEPSA) are coming June 13, 2006 PARLIAMENTARY DEBATES 1285 up with proposals about possible ways of redeeming the company. Mr. Speaker, Sir, we cannot make major decisions on the matter of the attempt to start selling off the assets of Uchumi Supermarkets Limited, which is before court right now. However, my position is that the custodian of public interest must look to the ultimate possibility of forestalling the pilfering of public historical assets before letting go."
}