MPs reject more funding for Phenix Logistics
Oct 07, 2010
PARLIAMENT has rejected the Government’s move to re-capitalise Phenix Logistics, a private textile firm, with sh1.5b.
By Vision reporters
PARLIAMENT has rejected the Government’s move to re-capitalise Phenix Logistics, a private textile firm, with sh1.5b.
Although finance state minister Fred Omach explained that the money had already been provided as capitalisation to the company, the MPs insisted that the money be treated as a recoverable advance.
The budget committee chairperson, Rose Akol, while presenting a report on the Supplementary Appropriations Bill 2010, said the committee was opposed to the Government’s move since the company had failed to make profits.
She said the committee also recommended that the Government presents to Parliament a status report for scrutiny, since a lot of money had already been sunk to the company since it was established.
Government has a share holding of 79% in the company, but despite getting billions of shillings in support from Government, it has failed to stand on its own.
“We used the 3% of the approved budget as the law allows us. As far as government is concerned this is a strategic investment,†he said, amidst booing from legislators.
The sh1.5b was part of the Supplementary Appropriations Bill 2010 that was passed with amendments on Tuesday. A sum of sh333.97b was approved to meet additional expenditure for the 2009/2010 financial year.
Another sh6,642.29b, was approved for the financial year ending June 30, 2011.
The House, presided over by Speaker Edward Ssekandi, allowed the sh112.577b provided to the Ministry of Defense for supporting the army, to be treated as capital expenditure and not recurrent expenditure as earlier indicated in the budget.
The legislators agreed that the Public Service budget be slashed by sh1.2b to cover for the money provided in the supplementary budget for the setting up of a college for training civil servants.
MPs reluctantly approved sh450m for the Non-Performing Assets Recovery Trust (NPART), saying the trust was being wound up.
PARLIAMENT has rejected the Government’s move to re-capitalise Phenix Logistics, a private textile firm, with sh1.5b.
Although finance state minister Fred Omach explained that the money had already been provided as capitalisation to the company, the MPs insisted that the money be treated as a recoverable advance.
The budget committee chairperson, Rose Akol, while presenting a report on the Supplementary Appropriations Bill 2010, said the committee was opposed to the Government’s move since the company had failed to make profits.
She said the committee also recommended that the Government presents to Parliament a status report for scrutiny, since a lot of money had already been sunk to the company since it was established.
Government has a share holding of 79% in the company, but despite getting billions of shillings in support from Government, it has failed to stand on its own.
“We used the 3% of the approved budget as the law allows us. As far as government is concerned this is a strategic investment,†he said, amidst booing from legislators.
The sh1.5b was part of the Supplementary Appropriations Bill 2010 that was passed with amendments on Tuesday. A sum of sh333.97b was approved to meet additional expenditure for the 2009/2010 financial year.
Another sh6,642.29b, was approved for the financial year ending June 30, 2011.
The House, presided over by Speaker Edward Ssekandi, allowed the sh112.577b provided to the Ministry of Defense for supporting the army, to be treated as capital expenditure and not recurrent expenditure as earlier indicated in the budget.
The legislators agreed that the Public Service budget be slashed by sh1.2b to cover for the money provided in the supplementary budget for the setting up of a college for training civil servants.
MPs reluctantly approved sh450m for the Non-Performing Assets Recovery Trust (NPART), saying the trust was being wound up.