Details are
now emerging over how national carrier Kenya Airways lost over Sh13billion in
an offer to purchase aircraft bought under the Mawingu project and which are
now rendered redundant.
During an appearance before the
National Assembly Transport and Infrastructure committee and the Senate
committee on Kenya airways inquiry, Acting transport Cabinet Secretary James
Macharia said the airline was now making fresh attempts to sell off at least
four aircraft which were grounded as the costs of operating them were high.
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Kenya Airways to sell
four of these Boeing 777-200ERs
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“We
have spoken to the management and they are selling four aircraft; some of them
777 and also some of the 737s. We are trying to see that this is done as
quickly as possible but chair you should know that selling an aircraft is not
like selling a car, it takes a long time… this is coming at a time when most
airlines are no doing well,” said Macharia.
Transport
Committee Chairman Maina Kamanda revealed that he was privy to information over
how an offer to purchase the four aircraft had been rejected by the airline
after the company that had expressed interest declined to pay kickbacks to the
tender committee.
“You
need to get the information right and get to know that the four aircraft at one
time had been advertised for sale and got the highest bidder, but because some
people who requested a commission did not get it, they cancelled the deal. They
advertised it after a few months and got half of what they got at that time,”
said Kamanda.
Macharia
said the matter was public knowledge but however declined to go into the
details saying they were investigating it and within two weeks, the ministry
would pronounce itself over what transpired.
During
an earlier appearance by the Kenya Airways management, the same issue emerged
that the airline had an initial offer of $322 million (Sh33 billion). However
the airlines’ Finance director Alex Mbugua said the best offer they had
received now was 185 million dollars (Sh19 billion).
Macharia
said he was working with the National Treasury to investigate cases of
financial impropriety as a forensic audit of the company’s books told a
different tale adding those found guilty would be penalised.
“The
balance sheet has a lot of queries and need to be investigated; the assets and
liabilities do not match the revenue,” said Macharia.
Macharia
who is the substantive Health CS pointed out that his ministry had since
cleared the routes that had been restricted due to the Ebola epidemic and had
since advised the airline to re-open those routes.
Macharia
disputed the proposals to have the government shares increased saying in the
airline industry which competitive and risky, the perils will be higher if the
government had more influence because the decisions are likely to be
politically motivated.
The
day saw the Cabinet Secretary find himself in the middle of the ‘sibling
rivalry’ between the Senate and the National Assembly when Kamanda directed him
not to appear before the Senate as the matter was not part of their mandate.
The
CS however honoured the summons with Nyeri Senator Mutahi Kagwe leading the
onslaught against the Lower House saying they were yet to mature and understand
how a bicameral Parliament works.
“The
issues we are facing are out of ignorance and immaturity. As in other bicameral
jurisdictions that have matured when one House starts a special committee on
something, it is very unlikely that the other House will investigate the same
thing, as we mature here, we hope this happens,” he said.
We
cannot afford to let KQ go down but bailing it out does not mean the Government
of Kenya putting money in the table. There has to be a plan…we have to be smart
because the government now cannot raise the Sh60 billion as we stand.
He
said there was a need to have a long-term initiative to rescue the airline
adding that the most important factor was to have the airline paid its debts
first.
Source: capitalfm
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