JKIA takeover has taken a new twist after Uasin Gishu governor Jacton Mandago opposed Deputy President William Ruto’s plea to Members of Parliament to allow the merger between Kenya Airways (KQ) and Kenya Airports Authority (KAA).
Mandago argued that it was not possible for a KQ take over the management of KAA when the former has been on record making loses from time to time and has always been bailed out by the government.
The North rift governor said that the deal would have only been meaningful had the proposal suggested KAA to takeover management of KQ in the merger.
“In the whole world, I have never seen a company that is making loses takeover management of a company that is making profit, it is always the reverse. Kenya Airports Authority should have takeover the management of Kenya Airways, that would have been acceptable,”he said.
The governor also took issue with the management of KQ over the funds the government has been pumping in as bail out demanding to know how they were used given the company was still struggling financially.
“Kenya Airways must first tell us how they have been spending bail out money that has always been issued to the company by government for many years now,” said Mandago
He vowed to frustrate the efforts for the merger urging MPs to remain firm and steadfast to reject the proposal. “As the governor whose county has the third largest airport in the country I will not allow that and Members of Parliament should reject that proposal completely,” he added .
Ruto had endorsed the proposal arguing that the merger would help resuscitate KQ which has been struggling economically.
However, Parliament’s Public Investments Committee (PIC) and Transport Committee members vowed to reject the proposal questioning how a financially crippled company would manage a stable entity.
RE Read more: https://www.tuko.co.ke/299783-uasin-gishu-governor-jacton-mandago-sharply-differs-ruto-jkia-merger-kenya-airways.html#299783