Energy Committee Engages Attorney General on Implications of Terminating Powe Purchase Agreement
The National Assembly Energy Committee has today quizzed the Attorney General (AG), Hon Justin Muturi regarding the inquiry into the high cost of electricity in the country.
The Committee led by Hon. Vincent Musyoka (Mwala) sought the AG’s counsel on the legal implications for terminating some of the Power Purchase Agreements and whether the Government can takeover some of the power plants in order to reduce the cost on the consumers.
In addition, the Committee also raised concerns on the possibility of exploring Mutual Legal Assistance principle in establishing beneficial owners of power companies registered in other countries.
“What options do we have to unearth the Directors of the companies hiding in other names of companies registered outside Kenya?” Asked Hon. Musyoka.
In response, Hon. Justin Muturi pointed out that his office could issue an advisory upon conclusion of the technical Committee’s task on reviewing and re-negotiating the PPA’s under the stewardship of the Ministry of Energy and Kenya Power is concluded.
On the Mutual Legal Assistance on Beneficial Ownership, the AG indicated that for that to take effect, there must be an active criminal matter in place.
“The issues raised here haven’t progressed to a level of investigation. However, the process involves DCI, DPP, EACC, AG’s office then Foreign Affairs”, said Hon. Muturi.
The AG disclosed to the Committee that it’s in violation of the applicable Law for the Registrar of Companies to claim he doesn’t have information.
“Section 994 (4) of the Companies Act states that the Registrar shall keep the Foreign Companies Register at such a place or places as are prescribed in its head office and shall ensure that it is kept for inspection by interested persons during normal business hours of the Register”. Stated AG
In view of the technical team engaging IPPs on power negotiations, the AG urged the Committee to insist on weekly updates.
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