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Parliament rebuffs allotting more funds to sick textile firm
12 Oct '10
1 min read
The Government's decision to invest sh1.5b to re-capitalise Phenix Logistics, a privately-owned textile company has been rebuffed by the Parliament.
However, Fred Omach, Finance State Minister has informed the MPs that, they have already released the fund to the company as capitalization money, but the MPs are stressing to treat the sum as recoverable loan.
Meanwhile, while submitting a report on the Supplementary Appropriations Bill 2010, the Budget Committee Chairwoman, Rose Akol, said that, as Phenix Logistics could not manage to generate profits, hence the Committee was resisting the Government's move.
Akol further stated that, the government has invested a considerate sum in the company since its inception hence the Committee has suggested that the Government should submit a status report for inspection.
The company with 79 percent government share, which by now has drawn billions of shillings in from Government by way of support, has still not succeeded in attaining self-reliance.
However, Fred Omach, Finance State Minister has informed the MPs that, they have already released the fund to the company as capitalization money, but the MPs are stressing to treat the sum as recoverable loan.
Meanwhile, while submitting a report on the Supplementary Appropriations Bill 2010, the Budget Committee Chairwoman, Rose Akol, said that, as Phenix Logistics could not manage to generate profits, hence the Committee was resisting the Government's move.
Akol further stated that, the government has invested a considerate sum in the company since its inception hence the Committee has suggested that the Government should submit a status report for inspection.
The company with 79 percent government share, which by now has drawn billions of shillings in from Government by way of support, has still not succeeded in attaining self-reliance.
Fibre2fashion News Desk - India
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