Public relations tops contracts awarded by Privatization Commission

The Privatization Commission is most concerned about its image as it spent sh32, 190, 000 in public relations to Engage Commissions in the year ending June 2016, the highest contract awarded by the state corporation.

Dyer and Blair is second at sh14, 732, 630 spent for transaction advisory services of privatization of sugar companies. In 2015, five sugar companies Chemelil, Miwani, Muhoroni, Nzoia and Sony Sugar were approved by the commission for privatization but the move was challenged in court. It was however thrown out in November last year by Justice Chacha Mwita who said the application was premature adding that that the court cannot be asked to resolve the dispute. He said it would be usurping the prior jurisdiction of the organs of the Intergovernmental relations Act, through which the governments shall make every reasonable effort to settle the dispute.

Following the decision which was a consolidated petition by Kisumu, Bungoma and Migori county governments against the privatization of the sugar companies, acting commission’ CEO Jacqueline Muindi, said they hope to close the sale in August this year of the 51 per cent stakes in the companies.

The strategic investors will have 51 per cent of shareholding in each of the five sugar companies. The remaining 49 per cent will be divided into two, where a trust – to be formed by farmers and employees, will hold 24 per cent and the government will hold 25 per cent, which they currently hold temporarily.

Established through the Privatization Act 2005, it commenced its operations in January 2009. The main activities of the commission are to formulate, manage and implement the privatization programme and make and implement specific proposals for privatization in accordance with the privatization programme.

Rent to Telkom Kenya to the tune of sh6,383,026 is third.

KPMG are fourth at sh4,000,00 for provision of enterprise risk management services while Mazars are fifth at sh2,094,960. Two internal audits were conducted during the year while Kenya Bureau of Standards also conducted a surveillance audit to establish level of compliance with ISO 9001:2008 quality standards.

In the list of top ten contracts by the commission, the other five are Kenya Airways, Jubilee Insurance, Extreme Computing Services, Kenya Railways Corporation and Kleansley Hygene Plus Limited. Kleansley were awarded sh732, 192 for comprehensive cleaning, fumigation and sanitary bins for 12 months.


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