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Speaking at a press briefing in his office, Mining Cabinet Secretary Najib Balala said the new Mining Bill, which was at the cabinet level would help streamline the mining industry saying all companies would get equal treatment by paying a flat rate in license fees and mining royalties, measures he said could earn the government over Sh10 billion immediately the measures were put in place. He also revoked 31 mining licences issued by the mining ministry between January and May this year saying they were issued in unclear circumstances. At the same time, the government has formed a taskforce to look into issuance of over 500 licences to mining companies since 2003, amidst reports that some were mere briefcase entities engaging in speculation and had no capacity to conduct commercial exploitation. Mr Balala said preliminary investigations indicated that only 20 out of the 500 companies were credible, with others out to make profits through speculation and hoarding of mineral resources, and making super profits by only paying a pittance to government by operating under the cover of export subsidies and other forms of preferential treatment.
In a move set to streamline Kenya's mining sector, Mining Cabinet Secretary Najib Balala has revoked all licenses issued from January to August 2013 to mining companies across the country. Balala says the decision was arrived at as a number of the licenses issued did not follow the 'set parameters' of the ministry. The Cabinet Secretary further announced the review in royalties to be charged on various minerals. The move to revoke the licenses is estimated to affect over 31 companies. NTV's Aby Agina has the details.
Parliament recess
No description available.
Balala revokes 31 mining licences
By GEOFFREY MOSOKU
KENYA: Members of Parliament put Moi Teaching and Referral Hospital (MTRH) on the spot after it emerged the facility signed a memorandum of Sh17 billion with two Chinese firms.
The hospital signed a deal to engage China Aerospace Construction Group to carry out upgrading and expansion of the facility on October 2012. However, this year on May 3, the country's second biggest referral hospital entered into another deal with China Wu Yi for the same project, without cancelling the first one.
The hospital admitted that they engaged a South African firm, TECMED in May 2012, but stopped any further engagement with it after Chinese government offered to finance the multi-billion shilling project on condition that only Chinese firms are considered for the contract.
Although the tender has not been awarded, MPs have expressed concern that the project may be derailed as it emerged that the earlier memorandum was binding. The MoU with China Aerospace is said to be having a clause that says, "MTRH does not engage with any other firm".
The legislators want to establish if the hospital sidestepped the first company and is now favouring China Wu Yi, and whether the MoU with China Aerospace won't return to haunt the project.
Another concern is why seven senior officials accepted a seven-day trip to China facilitated by China Wu Yi, a month after signing the memorandum yet they had not engaged further China Aerospace eight months after signing an MoU.
Delay
"We want to know under what circumstances MTRH signed a memorandum with the two companies. This may end up pitting the firms against each other and may cause unnecessary delay," Health committee chair Rachel Nyamai said.
The committee yesterday ordered the management of MTRH hospital to furnish MPs with details of the two memoranda.
The legislators put hospital CEO John Kibosia to task to explain the status of the project given the existence of the two memoranda.
The MPs wondered why the CEO led management team to China last month on an all-expense-paid trip.
"The committee may consider this trip as a bribe," Dr Nyamai said before ordering Dr Kibosia to return to the committee on Tuesday next week.
Embakasi North MP John Gakuya also wanted the hospital boss to explain why they had technically knocked out some companies, especially those from Spain that had expressed interest in the project.
The delegation to China included Dr Kibosia, Deputy Director Finance and Administration Agunda Ochanda, Deputy Director Francis Ogaro, Radiology and Imaging Head Of Department Ezekiel Chemulwo, hospital engineer Joseph Atogo, HOD Laboratory Services Florence Tum and Project co-ordinator Silas Tum.
Dr Kibosia defended the July 1 to 9 trip, saying it was part of due diligence in determining capacities of the companies that responded to the proposal. "The visit to China was to help the hospital carry out due diligence and make evaluations of Chinese medical equipment manufacturers. The visit was also meant to enrich our conceptual requirements of a modern referral hospital," he told the MPs.
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