MPs questioned the Government over payments of pending bills and a currency printing deal with a foreign company. A member sought Treasury’s assurance funds are not squandered.
Rangwe MP Martin Ogindo claimed pending bills worth billions of shillings, some whose eligibility for payment was suspect, had been converted into bonds payable through the Consolidated Fund Service.
Ogindo said taxpayers’ money is lost in servicing questionable ventures, including "the continuous payments for Ken Ren for which we are paying close to Sh5 billion yearly."
Ken Ren refers to a botched joint venture entered in the early 1970’s between the Government and an American firm, Ken Ren Chemical and Fertilizer Company, to establish a fertiliser processing plant at Mombasa, which collapsed in scandal.
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Finance Committee chairman Chris Okemo also questioned the currency printing deal between the Government and a UK firm, De La Rue. This was during scrutiny of Treasury’s budget in the House.
Okemo sought assurance the firm was charging competitive prices and not taking advantage of monopoly to slap taxpayers with exorbitant bills.
"We should not mix equity participation by Government with competitive pricing in procurement. Even though security is key, we should strike a balance," Okemo said.
But Finance Minister Uhuru Kenyatta said a Cabinet sub-committee had cleared the deal with De La Rue after certifying the public would get value for their money.
"I acknowledge the need to ensure equity participation does not lead to exorbitant charges. Other countries like Canada and UK have their own currency printing firms but I am sure we are not out of line with the practice in other countries," Uhuru said.
He said there was nothing to hide in the Consolidated Fund services.
