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{
    "id": 520221,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/520221/?format=api",
    "text_counter": 229,
    "type": "speech",
    "speaker_name": "Hon. Wangwe",
    "speaker_title": "",
    "speaker": {
        "id": 2543,
        "legal_name": "Emmanuel Wangwe",
        "slug": "emmanuel-wangwe"
    },
    "content": "somebody is coming to take over the machinery and land. We know that that land was never paid for. It is a big problem and we want the Committee to really consider that during the privatisation process. Privatisation itself is good, but the process must adhere to concerns such as who owns the land. The land belongs to our people and not the people who are coming to take over the machines. However, there are some very good issues that the Report is showing and which I commend. The Report is pointing out that the farmers shall get, at the initial stage, 24 per cent. That means that the farmers shall own the new entity in terms of shareholding at a ratio of 24 per cent with a reserve shareholding of 6 per cent which will be added later on. This is a noble idea. I want to support that and insist that the Finance, Planning and Trade Committee should determine how the farmers are going to own the 24 per cent. It should not be a cohort of two or three farmers who will come together and say they own it. Let us have well established organizations like the one in Nzoia and Mumias Outgrowers Company (MOCO) in Mumias. Let us make sure that all the farmers own that jointly through the various co-operative societies. I also want to bring to the attention of the House the fact that the model the Report is suggesting to adopt is contrary to the model that was there in the Mumias Sugar Company privatisation process. If at all the model is going to adhere to that issue of 24 per cent, 6 per cent and 51 per cent, the challenge goes back to the Committee. Let it make sure that they bring on board a strategic investor. Let us not just go on the stock market and say that we are going to give out our factories for this-and-that as the Initial Public Offer (IPO). I would not want to suggest that they go to the stock market or to do anything other than to get a strategic investor. The strategic investor should be one person who will be in charge of those factories and manage them accordingly. Many private investors have come on board. Today, we have West Kenya Sugar Company and Butali Sugar Company as private sugar-milling entities. We also have a factory coming up in Nasewa in Busia County. That means that the sugar industry is very attractive. So, if there are more new entrants coming on board, why is it that the existing companies are not able to operate and make profits? At the same time, I wish to ask the Departmental Committee on Finance, Planning and Trade, as they undertake the process further, to also consider those directors who were there before. In the establishment of the sugar sector, we used to have zonal directors. What did they do? When we are writing off the debts of Nzoia Sugar Company amounting to Kshs28 billion, what did the directors do during their time? Who were they and what do they own? Are we just chasing the Kshs6.2 billion from the current Klynveld Peat Marwick Goerdeler (KPMG) in Mumias? Why can we not also go back and address the issue of the Kshs28 billion from Nzoia Sugar Company and all those other monies that we see in this Report? Finally, the machines and infrastructure are obsolete. The road network, factories, plants and sewer systems in the various establishments are obsolete. It calls on us to support the privatisation of those companies. Let us move the process, but with a lot of caution in terms of land, corruption by civil servants and the poor management strategies of the various factories. Thank you, hon. Speaker. I support. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}