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{
    "id": 575499,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/575499/?format=api",
    "text_counter": 322,
    "type": "speech",
    "speaker_name": "Hon. Angatia",
    "speaker_title": "",
    "speaker": {
        "id": 2153,
        "legal_name": "Ayub Savula Angatia",
        "slug": "ayub-savula-angatia"
    },
    "content": "Hon. Temporary Deputy Speaker, I am an experienced businessman and I understand what a financial report of a company means. I understand what insolvency means. I was saying that Mumias Sugar Company is leaning towards insolvency and banks have already written to it. I said that the President and his deputy intervened and negotiated with the banks to give more time to Mumias Sugar Company to sort out its balance sheet and restructure the loans. If they were paying Kshs2 million in a month, they should restructure it, so that they can pay Kshs500,000 and take like three or four years more. This will enable them to return to profitability through efficient cash flows to sustain the repayment of the loans. That is what I was saying. There are no procedures under the Banking Act governing insolvency. This means that external forces had to intervene to save the company. The Banking Act does not clearly specify the mechanism that can be used to renegotiate a loan to avoid the company heading towards insolvency and receiver managers being sent to it. People were just discussing haphazardly. You can go to a bank to renegotiate your loan and they tell you to pay them half of the loan or clear all the arrears before they can give you room to negotiate. If you do not have anything to pay, how will you pay a half? 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."
}