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{
    "id": 42353,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/42353/?format=api",
    "text_counter": 460,
    "type": "speech",
    "speaker_name": "Mr. Wako",
    "speaker_title": "The Attorney-General",
    "speaker": {
        "id": 208,
        "legal_name": "Sylvester Wakoli Bifwoli",
        "slug": "wakoli-bifwoli"
    },
    "content": "you have in your possession, then you will be committing an offence. Clause 298 will deal with you. Mr. Deputy Speaker, Sir, the bankrupt person can also commit an offence if he conceals books of accounts and papers or falsifies those books of account. A bankrupt person also commits an offence under Clause 302 on page 967, if he fraudulently disposes off the property particularly knowing that he is bankrupt. For example, he can now start selling all his property quietly and so on, for the period of five years then he will be committing an offence under this Act. We have had cases in this country, particularly by foreigners. They commit acts of bankruptcy and then try to leave the jurisdiction of the country or they leave the country. In that case, an offence is being committed. Mr. Deputy Speaker, Sir, a bankrupt person also commits an offence when despite knowing that he is bankrupt, obtains credit for himself or for the purpose of engaging in some other businesses. That is also an offence because the creditor under those circumstances will not be protected. A bankrupt person commits an offence where there is failure to keep proper accounts of businesses. The whole chapter deals with the offences that can be committed by a person who has been declared bankrupt. The whole purpose of that is to ensure that the creditors are protected. Although they may not be entitled to full payment, but at least all the properties of the bankrupt person can be realized and go towards clearing the credit. Mr. Deputy Speaker, Sir, for the companies, again bankruptcy can be declared by the court or the company can voluntarily decide to declare itself bankrupt. Even where it does so, the court must give assent to that bankruptcy. Clauses 365 to 380 provide for the constitution of a committee of inspection. If the creditors feel that a committee should be appointed to carry out an inspection of a person who has been declared bankrupt, such a committee can be set up under those clauses and the powers of the committee; what they can do and cannot do is clearly set out. Mr. Deputy Speaker, Sir, Clauses 420 to 421 which are on page 1064 clearly state, when all the properties have been realized and you have creditors, how are they to be paid. In what order must they be paid? Which creditors are entitled to prior payments and so on? Clause 421 on page 1064 provides the order of priority on how the various persons have to be paid. Needless to say, the cost and expenses of winding up have to be paid first, followed by wages and salaries of the workers, followed by any amount due to employees as retrenchment benefits, followed by amounts due in respect of Workmen’s Compensation Act and so on. Then now what is left can be divided on pro rata basis amongst the creditors. But the employee’s benefits and salary are taken care of and they must be paid first before the amount that has been realized can be distributed amongst the creditors. Mr. Deputy Speaker, Sir, I am very pleased to move this Bill. If enacted it will bring us very close to one of the best laws we have in this country on insolvency law. This Bill combined with the Companies Bill which went through Second Reading in this House recently, and the Partnership Bill which has also gone through; a combination of these three Bills I think will bring a number of our commercial laws to date."
}