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{
    "id": 734376,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/734376/?format=api",
    "text_counter": 163,
    "type": "speech",
    "speaker_name": "Hon. Wamunyinyi",
    "speaker_title": "",
    "speaker": {
        "id": 291,
        "legal_name": "Athanas Misiko Wafula Wamunyinyi",
        "slug": "athanas-wamunyinyi"
    },
    "content": "stating that all court cases filed by the World Duty Free and its associates or subsidiary companies against the KAA by the World Duty Free Shops had been withdrawn. However, Eng. Kamau did not table anything to show before the Committee that the cases had been withdrawn. So, during the taking of evidence, we established that there was nothing to show that the matter had been resolved as publicised by the then CS. Further, Eng. Kamau did not follow through to ensure that his public pronouncements on the 16th September 2013 were fully implemented and a deed of settlement entered into to protect public interest. This has led to an exposure of public funds of not less than Kshs17 billion arising from court awards that were made by judges during the hearing of the cases. Notwithstanding that fact, there were other costs that were incurred by the KAA, including management and legal fees and other matters related to the case. The damages that arose from the process of forceful eviction were a huge cost that the Kenyan public had to settle. The Committee observed that the deed settlement agreement between the KAA and the World Duty Free was never concluded in full because neither of the parties fulfilled the pre- conditions to meet their part of the bargain and this has contributed to the current stalemate. The Committee further observed that currently, Terminal 1A space is in use by the World Duty Free, Susan Duty Free, Duty Free International AG or other local duty free operator. However, despite the ongoing court cases, the spaces at Terminal 1 have been allocated to another company namely Meyer Duty Free limited on the pretext of temporary license which expired on September 2014 and renewed under unclear circumstances. This was extended without following the due process. This suggests that we are likely to experience further disputes even in the future with the current users of the space at the airport. The Committee also observed that the allocation of space to Meyer Duty Free Limited in Terminal 1A, which is the subject of the Committee inquiry, seems to have been undertaken in total disregard of the procurement laws and procedures. No procedures were followed as required by law and, therefore, this was also illegal. The external legal team headed by Mr. Fred Ngatia hired by the KAA to help resolve the WDF cases, has not fully achieved the intended objectives in terms of resolving the cases, but instead, slapped the KAA with a hefty legal fee note of approximately Kshs350 million. The KAA has to pay the legal fees yet it has not realised anything out of that representation. Mr. Fred Ngatia did not act in the best interest of his client, the KAA, in his representation of the same on the duty free cases. Despite numerous resolutions, he failed to advise the KAA to take the matter on the determination of the validity of the 1989 issue of lease agreement to court and instead advised that the international court had already determined the matter. He devised a strategy of forceful eviction of the World Duty Free from the airport and did not even follow through to ensure that the deed of settlement is registered in court. The consequence is that the World Duty Free has not withdrawn the case in court. Through his advice, KAA and the public stands to lose not less than Kshs7 billion. This is legal advice that misguided the KAA. It has exposed the Kenyan public and the taxpayer to a liability to the tune of Kshs10 billion. The Committee also observed that one Lucy Mbugua, the then Chief Executive Officer (CEO) of the KAA, failed in her duty to effectively manage the external professional legal team that KAA had hired. Instead, she resorted to accusations upon the Legal Counsel, Mr. Fred Ngatia, for not co-operating with his client, the KAA, in the matter of settlement with the World Duty Free Shops. 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."
}