24 Feb 2016 in National Assembly:
With those very many remarks, I support.
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18 Feb 2016 in National Assembly:
Thank you, Hon. Speaker for allowing me to shed light on the Report. I support this Report as amended. At the outset, I would like to classify this Report into four sections. When you look at how the Report has been given to us, it is in terms of the cane price. It has also been explained properly in terms of the factory and management. It has also been given to us in terms of the sugar pricing. I would also want to touch on the issue of the role of the Government in the management of the sugar sector.
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18 Feb 2016 in National Assembly:
At the outset, you see that there is a comment on the establishment of the prices. The Committee has found out that in the beginning, the cane prices were falling drastically. When you look at the Report on Note 20 which highlights the cane price as it has moved, it details that the price moved from Kshs4,911 to Kshs4,449. That kind of oscillation of prices leaves us with a question: How come the price of cane in that period was coming down whereas the price of sugar was going up.
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18 Feb 2016 in National Assembly:
The genesis of corruption in the sugar sector begins with the cane pricing. When you get the cane pricing wrong, it means you are paying your farmers wrong. I want to thank the Committee because that is the reality. That is the reality on the ground. I want to shed some light on that. It also goes along with the kind administration in the field, especially with the way Mumias Sugar has been doing. Most sugarcane farms are declared as measuring two acres and yet, in reality they measure one acre. So, companies give you inputs on credit and yet ...
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18 Feb 2016 in National Assembly:
There is the issue of the factory and the management, which has come out very clearly in the recommendations. A company is run by a Chief Executive Officer (CEO) and the factory administration. The epicentre of mismanagement of sugar factories also ends up in the factory itself. When the farmer sends cane to the factory, the weighbridge which determines the weight against which the farmer will be paid does not determined the weight properly. The genesis of the whole trouble starts when weight is not determined properly. This is because there is a mismatch in the declaration of what has ...
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18 Feb 2016 in National Assembly:
There is also the issue of management, which has been brought out very clearly in the observations. There is an admission on Recommendation 114. It says:- “THAT, the Kenya Revenue Authority (KRA) should be held responsible for the loss of Value Added Tax (VAT) amounting to Kshs577 million---” Then it qualifies that statement and says:- “--- for fictitious exports of sugar by Mumias Sugar Company (MSC).” When a report qualifies itself on the statement then it means that there is a problem with the management because it already acknowledges the fact that there is fictitious export of sugar from MSC. ...
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18 Feb 2016 in National Assembly:
not only the board or the management that is in charge of the management of a company. It is a joint effort between the management and the board. Therefore, these two organs should be held accountable with regard to what happened when they were signing the final returns to account for what they had done in that fiscal year.
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18 Feb 2016 in National Assembly:
The third point I want to talk about is on sugar pricing. As I said earlier on, there is a drop in cane pricing. This means that we should also benefit at the counter on how much we pay. However, you find that whereas there is a drop in cane pricing, there is increase in the price at the counter. That is an absolute abuse of any laid down rules of economics. When the input is lower, we expect an output to be lower too. We need to deal with that genesis of corruption.
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18 Feb 2016 in National Assembly:
Finally, I will talk on the role of the Government. We see the abuse of exports. The Committee has investigated the KRA officers and recommended that there was no full determination of corruption on what the KRA officials were saying and alluding to in terms of the exports. If the tax collector cannot account or show proof that those goods went out of this country then that is real corruption in practise. We want the KRA officers who were there then and who could still be there now to be held accountable and explain to Kenyans where our tax is.
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18 Feb 2016 in National Assembly:
In that view, I want to make a proposal. We have bodies like the Auditor-General who can go and investigate where KRA erred. We want the Auditor-General to disclose to us exactly what happened to MSC. Where is this tax leakage? What happened and who are the parties that should be held accountable? The Report says that this matter should be referred to the Ethics and Anti-Corruption Commission (EACC). Let the EACC take up the audited report from the Auditor-General with respect to this matter so that we curb any future issues arising out of that.
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