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{
    "id": 99871,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/99871/?format=api",
    "text_counter": 30,
    "type": "speech",
    "speaker_name": "Mr. Nguyai",
    "speaker_title": "The Assistant Minister, Office of the Deputy Prime Minister and Ministry of Local Government",
    "speaker": {
        "id": 113,
        "legal_name": "Lewis Nganga Nguyai",
        "slug": "lewis-nguyai"
    },
    "content": " Mr. Temporary Deputy Speaker, Sir, I beg to reply. (a) Yes, I am aware that auctioneers acting on instructions of the National Bank of Kenya have already advertised for sale by public auction of Lumumba Estate in Kisumu Municipality on 2nd July, 2010, on an alleged default of a loan repayment by the council. (b) The National Bank of Kenya advanced the Council Kshs3 million overdraft in 1990 after the approval of such a facility by the Ministry and was advanced when the council had problems in paying salaries. The overdraft became unmanageable, then standing at Kshs11 million as at 1992 and the council changed it into a long-term loan facility which had the Ministerâs approval and was granted by the bank after registering a legal charge on the council property, block MCK/5/43 of Lumumba Estate. The bank is claiming Kshs103,598,063.50 as at 2nd February, 2010, which is due to accumulated accrued interest from the original debt of Kshs11 million. The amount currently claimed by the bank is in dispute and on receiving the notice from the bank on 6th February, 2010, the council went to the bank for negotiations. However, the bank surprised the council with the advertisement of the sale of houses before the negotiations were over. (c) The Municipal Council of Kisumu has instructed her lawyers through letter dated 14th June, 2010, to take up and conduct this matter. I wish to inform Parliament that an injunction has been granted today, 24th June, 2010, against the sale of Lumumba Estate by the National Bank of Kenya. In addition, I have been directly in touch with the Managing Director of the National Bank of Kenya and he has accepted to have the matter renegotiated between the Municipal Council of Kisumu and the National Bank of Kenya for an amicable settlement. Further, I have directed His Worship the Mayor of Kisumu to set up a team to negotiate the settlement of the outstanding loan."
}

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