HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept
{
"id": 316195,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/316195/?format=api",
"text_counter": 467,
"type": "other",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "In addition, we include the condition that the Government must do a proper and/or sufficient due diligence, particularly feasibility studies and cost-benefit analysis to ascertain the profitability and viability of the Ruaraka plant before investing in it. Another recommendation that this Committee would like to make is that the Treasury must take the necessary steps and at the same time fast-track the bringing to Parliament for enactment, legislation guaranteeing the CBK independence, in the context of Article 231(3) of the Constitution of Kenya. Mr. Temporary Deputy Speaker, Sir, we, finally, recommend that, in light of Article 231(3) of the Constitution of Kenya, the CBK should competitively procure bank notes as and when required, without any direction whatsoever; or control by any person or body. The situation can clearly be seen to cause the delay in the finalization of this joint venture, and should not be a reason for direct procurement of bank notes from De La Rue at a price which is not competitive. Mr. Temporary Deputy Speaker, Sir, we have made these recommendations for the following reasons. (a) Mr. Kimunya: For those who have the report, I beg you to join me in looking at the executive summary of the report. We have found that since Independence, the Government of Kenya has been procuring bank notes from De La Rue company, which has changed names from time to time. Initially, the company printed bank notes at its United Kingdom plant until 1994 when it set up a plant at Ruaraka in Nairobi. In December, 2002, following the expiry of a 10-year contract between the bank and the company, the bank entered into another 10-year currency printing contract with the company without a competitive tendering process. The contract was cancelled in 2003 by the bank on the orders of the then Minister for Finance, Mr. David Mwiraria, who called for a competitive procurement process. The Committee was satisfied that the action of Mr. Mwiraria was correct. Through a competitive procurement process, a tender of 1.71 billion pieces of bank notes was awarded to De La Rue at a cost of US$51.1 million, or Kshs3.75 billion. A contract to that effect was signed on 4th May, 2006. This contract was for printing new generation bank notes. The unique thing about the new generation bank notes was that the notes were smaller in size and had advanced security features. The contract was, unfortunately, cancelled in November, 2007 on a directive from Mr. Amos Kimunya, then Minister for Finance, on the grounds that the Government intended to enter into a joint venture with De La Rue company. Mr. Temporary Deputy Speaker, Sir, having said so about Mr. Kimunya, I want to request hon. Members to see the proof of what Mr. Kimunya did. If you have the book and the report, we have annexed two letters from Mr. Kimunya. There is a letter, annex No. 10, which is a letter from Mr. Kimunya to then Acting Governor, Jacinta Mwatela, dated 25th August, 2006. There is a second letter from Mr. Kimunya, which is evidence, dated 1st November, 2007. This is annexture No.15. Let me go to the letter of 1st November, 2007. This is the letter in which Mr. Kimunya directed Prof. Njuguna Ndung’u to cancel the contract. The date of the letter is 1st November, 2007. In this letter, Mr. Kimunya cancelled the contract. It is appendix No. 15. The letter is from the Ministry of Finance and is marked “Secret”. The reference number of the letter is “Our Ref. Confidential/ 36/02. Through this letter, hon. Kimunya cancelled the contract. The reason we thought it was wrong for him to have cancelled the contract was because Treasury"
}