Contrary to the news that has been trending, it is now alleged that Auditor General Edward Ouko has rubbished reports that the port of Mombasa is poised for take over by Chinese Bank, Exim Bank, in case Kenya fails to repay loan used to build the Standard Gauge Railway (SGR).
In a tweet, the Auditor General said that he has not released such a report.
“Our attention has been drawn to reports that Office of the Auditor General has released an audit report on Kenya Ports Authority for FY 2017/18. This is to clarify that the Office has not released any such report,” tweeted the auditor general.
Early today, it was reported that Auditor General had released a report indicating that the Mombasa Port could be taken over by Chinese bank, the Exim bank in case she defaults the SGR loan.
In the report signed by F T Kimani on behalf of the Auditor General Edward Ouko, he stated that the government used the Kenya Ports Authority assets as security to secure loans, but kept it under wraps in their financial statement.
“China Exim bank would become a principle over KPA if Kenya Railways Commission defaults in its obligations and China Exim Bank exercise power over the escrow account security,” read the report in part.
The audit showed that KPA’s revenue was Sh 42.7 billion as at June 30, 2018, a 7.9 percent increase from the Sh39.6 billion recorded the previous year.
A report by Auditor-General Edward Ouko reportedly states that the payment agreement substantively means the revenue of the Kenya Ports Authority would be used to clear the debt.
This was if the minimum volumes required for consignments are not met.
The letter says, “KPA assets are exposed since the authority signed the agreement in which it has been referred to as a borrower under clause 17.5.”
It adds, “Any proceedings against its assets by the lender would not be protected by sovereign immunity since the government waived the immunity on the KPA assets by signing the agreement.”
Kenyans have since released a public outcry and expressed their disappointment in the government after the reveal.Do you believe that the auditor’s report was nothing but a scam?