The Senate wants an independent forensic audit done on Kenya Airways following revelations of massive misdeeds by the management and board of directors, as detailed in a report adopted by the House Thursday. They now want investigating agencies to probe the matter.
The lawmakers argued that Sh70 billion required to resuscitate the entity from collapse cannot be injected by the Government if those culpable have not been prosecuted. They further demanded the arrest of former KQ Chief Executive Officer Titus Naikuni and that the board be held accountable for the losses the company has incurred following the implementation of the Mawingu project contrary to expert advice. They have also called for the sacking of current boss Mbuvi Ngunze over incompetence.
Senate Majority Leader Senator Kithure Kindiki (Tharaka/Nithi), his Minority counterpart Senator Moses Wetang'ula (Bungoma), Deputy Majority Senator Charles Keter (Kericho), senators Amos Wako (Busia), Mutahi Kagwe (Nyeri), Chris Obure (Kisii), Muruiki Karue (Nyandarua), Boni Khalwale (Kakamega), Kipchumba Murkomen (Elgeyo/Marakwet), Neisuda Lesuuda (Nominated), Joy Gwendo (Nominated), Beatrice Elachi (Nominated) and Catherine Mukiite (Nominated) shelved their political differences and united in calling for the prosecution of those involved in the current mess.
They said the Ethic and Anti-Corruption Commission (EACC) and Directorate of Criminal Investigations should immediately send officers to the troubled airline. "EACC and DCI should arrest Mr Naikuni and the other top managers," said Dr Khalwale.
Khalwale, Murkomen and Elachi supported the investigation of Naikuni and other managers, while at the same time faulting the board over the recruitment, of Mr Ngunze. "A poor and weak team resulted in poor strategic decisions, which failed to make KQ profitable. The planning of routes is a big flop. We must hold some people accountable," said Khalwale.
He questioned why KQ is shielded from audit yet the Government is a shareholder, even as he accused the management of deliberately denying the committee crucial documents.
Senator Anyang' Nyong'o (Kisumu) who is chairing the select committee, while moving the motion for the adoption of the 91 page report, blamed Ngunze and the board for lacking strategic vision to steer the company to success.
"Our recommendations may be harsh but this report should be used as a tool to turn the fortunes of the airline around, which we believe must be done," stressed Prof Nyong'o.
In seconding the motion, Mombasa Senator Hassan Omar also poked holes in the conduct and capability of the board and management, as he concurred with Nyong'o that to revive the fortunes of KQ, heads must roll.
"Drastic measures must be taken to mitigate the challenges affecting the company and this includes addressing massive legal issues and interrogating management decisions. Kenya is a free market economy, however, we cannot constantly give excuses for our failures," he warned.
He emphasised: "KQ must deal with contextual realities, political and economic. The airline must have a homegrown client base and this can only be addressed through fair ticket pricing, which presently is out of reach for many Kenyans and foreigners."
The leaders questioned the airline's decision to purchase aircraft using a Cayman Island account that could be subject to personal interests. "Even as we deliberate on capital injection, it is important to enforce stringent conditions, which include complete overhaul of management and board. Prosecution of those culpable must be enforced. The issues of accountability must be taken seriously. Poor management has brought the national carrier to its knees," said Prof Kindiki.
He continued: "We must attach names and faces to what has happened at KQ." Mr Kagwe, the committee's deputy chair, questioned the rationale of injecting $700 million to save the company if there was no re-organisation. "The latency of management mistakes should not be allowed to continue, something must happen. We are not trying to micro-manage KQ but we have the capacity to advise on how taxpayers' money is appropriated," he explained.
