Finance Committee Faults National Treasury Over Handling Of Impending Sale Of Uchumi Langata Hyper Land
National Assembly Departmental Committee on Finance chairperson Kuria Kimani
By PSCU
Worth Noting:
- “PS, the Government of Kenya is the major creditor in this matter- owed about KS h1.2 bn yet there is no confirmation that after the court verdict, the National Treasury filed any objections to the sale before the expiry of the timeline set by the court, nor filed an appeal when the court granted leave to the bank to enforce the sale”, he observed.
- Other members sought to know why the National Treasury never opted to clear the loan owed to UBA bank to safeguard the interests of taxpayers. The government through the National Treasury owns a stake in the defunct Uchumi Supermarkets.
The National Assembly Departmental Committee on Finance and National Planning has faulted the National Treasury for lack of a proactive response towards the sale of Uchumi Langata Hyper Land sought by a foreign bank, a creditor to Uchumi Supermarkets.
The matter which is before the committee following a Statement sought by Soy Constituency legislator, David Kiplagat follows a petition filed in court by a creditor; UBA bank, who sought the court’s leave to enforce the recovery of KSh163 million loan, through the sale of the land which was offered as collateral security when Uchumi sought the loan.
Speaking when the committee met with the Principal Secretary for National Treasury, Dr. Chris Kiptoo, members led by the chairperson Kuria Kimani expressed concerns over the manner in which the government had responded to the matter during and after the litigation process.
“PS, the Government of Kenya is the major creditor in this matter- owed about KS h1.2 bn yet there is no confirmation that after the court verdict, the National Treasury filed any objections to the sale before the expiry of the timeline set by the court, nor filed an appeal when the court granted leave to the bank to enforce the sale”, he observed.
Other members sought to know why the National Treasury never opted to clear the loan owed to UBA bank to safeguard the interests of taxpayers. The government through the National Treasury owns a stake in the defunct Uchumi Supermarkets.
“Why should one creditor owed about 10% of the total value of the land be the one seeking the enforcement of the sale to recover their loan? Would it be more prudent to pay them off and halt the sale and have the government keep the land in public interest? posed Adipo Okuome.
Appearing on behalf of Kiplagat who had sought a response on the floor of the House, Nandi Hills legislator Hon. Bernard Kitur observed that while the government had extended a KSh1.2 bn loan facility to Uchumi Supermarkets earmarked to boost its turnaround efforts, there had been follow up on how the firm was operating. He implored on the PS to have his State Department take interest on how Uchumi Supermarkets can be revived to safeguard the jobs of employees working there and business for the suppliers.
“PS, all that your State Department needs to do is to engage with Uchumi Supermarkets and see how to boost their turnaround efforts. They do not even require exchequer funding.”, he held.
In response, PS Kiptoo acknowledged that due to some technical challenges, there had been lapses in handling the matter but which had not been deliberate. He revealed to the Committee that while serving as PS Trade, he had negotiated for the cabinet’s approval for the loan facility, but due to mismanagement, the expected turnaround did not materialize.
“I admit that we have not acted as government should, on this matter. This largely because we do not have representation at the Board. I will however meet with Uchumi to ensure that we get the most optimal value for money”, he told the MPs.
The PS further admitted that there was need to secure the land until a proper valuation had been made . UBA had in a report filed in court given the value of the land at KSh600 million as at 2018.
The chairperson directed that the PS appears at a later date to shed more light on the matter, including offering a confirmation as to whether the Attorney General’s office had filed an appeal on the court ruling.
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