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Kaluma to name cartels behind KQ woes within a week

06 August 2015, 08:05 Samuel Kisika

Nairobi – Homa Bay Town MP, Peter Kaluma has threatened to name powerful individuals and cartels bringing down Kenya Airways (KQ) after seven days if no action will have been taken by investigative agencies.

Kaluma claimed that he knows the culprits who are KQ’s major shareholders under a cartel of “local entrepreneurs” comprising local politicians, board members and former managers and associates of former managers or shareholders of the airline.

He said the cartels supplying goods and services including fuel, foodstuffs, clothing for air hostesses and pilots, plane lease to the airline, hotel and engineering services to the airline conspired in looting with the aim of bringing down the company as soon as possible so that they can purchase it at a throwaway price.

“Goods and services offered to the airline by companies associated to this dangerous cartel are charged 10 times the local prices. In so doing, the cartel has ensured this great airline making huge returns both locally and on international routes never makes profits,” said Kaluma.

“This is indeed the reason these ruthless individuals are busy purchasing shares of this fast-collapsing company,” he added.

Read Also: Kenya Airways might need KES 60 billion bailout

Kaluma said investigative agencies owe Kenyans an explanation as to why KQ’s over 100 pilots allegedly come from six families all associated with the responsible cartel despite adverts by the airline seeking to recruit pilots.

“We must be told why jet fuel and lubricant to the airline is supplied by a company closely associated with a major shareholder in the company and why the Board of Management never saw this obvious case of conflict of interest!” said Kaluma.

For instance, he demanded the investigative agencies and the Parliamentary public accounts committee probing into KQ’s financial woes to establish shareholders of NAS Company that supplies the airline with local goods and foodstuffs at exorbitant prices.

“We must be told why clothes, dresses and even shoes for airline staff are made in foreign countries such as China and Hong Kong by companies associated with this same cartel at over 15 times the local price yet our local designers can do a better job!” said Kaluma.

He further added that there should be answers regarding owners of planes leased to KQ and how much money leasers have been paid by the airline in the last three years.

He was addressing the press at Parliament Buildings.

“We cannot be told that the airline has made a huge loss of over KES 25 billion yet it has been leasing planes. The government made a capital injection of KES 4 billion in the airline and we must be told where huge incomes made by the airline have been going,” said Kaluma.

“We cannot be investing public funds into a public company only to be swallowed by greedy individuals calling themselves entrepreneurs,” he cautioned.

He further asked the government to ensure public officers involved in the bringing down KQ are removed from office and prosecuted.

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