Now MPs want TriStar’s Kananathan arrested

Nov 04, 2006

PARLIAMENT’S public accounts committee has recommended that the African Growth Opportunity Act (AGOA) operations be transferred from State House to the trade ministry.

By Mary Karugaba
PARLIAMENT’S public accounts committee has recommended that the African Growth Opportunity Act (AGOA) operations be transferred from State House to the trade ministry.
The committee chaired by Nandala Mafabi also resolved that the activities of AGOA be vested under the minister of trade for supervision.
Mafabi said, “AGOA is a trade issue and should be under the ministry of trade. “I think TriStar failed partly because of being supervised by different organs. Removing AGOA from State House does not mean we have taken away its oversight function.
“We only want technical people handle this sector,” Mafabi said.
The legislator criticised Apparel TriStar managing director Velupillai Kananathan for failing the company “yet the Government had injected billions of money.”
“Kananathan should be arrested for mishandling the enterprise. He should be blamed for everything,” he said.
The MPs’ query came after the trade ministry permanent secretary Dr. Sam Nahamya complained that the Government had not paid arrears amounting to over sh16m for TriStar food suppliers since 2004.
Nahamya said the ministry pays up to sh800m per year on the operations of AGOA activities such as transport, training of the girls, office rent, officers’ allowances, travels, fuel and vehicle maintenance.
. “I am ashamed to tell you (MP) that the ministry has no money to pay over shs16m to AGOA food suppliers since 2004. Its unfortunate that we spend sh800m to something that is not under our control,” he told MPs.
He was appearing before the committee to answer queries raised by the Auditor General in his 2004/5 financial year report.
The Auditor said there were no competent qualified support staff at the secretariat to technically handle the task of export promotion of the AGOA products.
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