MPs suspend law on state-sponsored assets due to possible abuse

Chairman of the National Assembly Finance Committee Kuria Kimani /FILE

MPs have suspended consideration of the Unclaimed Financial Assets (Amendment) Bill, 2023, after the executive body of the proposed bill failed to clarify to the committee what the amendment in the parent bill was intended to address.

The National Assembly’s Departmental Committee on Finance and National Planning expressed concern that the proposed amendment, if left unchecked, would be open to abuse and could pave the way for easy transfer of proceeds from economic crimes.

Unclaimed Financial Assets Authority Caroline Chirchir, acting Chief Executive Officer, was taken to task when she appeared before the committee to explain the challenges that led to the proposed change.

Ainamoi MP Benjamin Langat, who chaired the session, wanted to know from the acting CEO of UFAA why they had proposed to give a claimant owner the power to appoint the payment of a claim to another person.

“The amendment that this bill seeks to implement has very serious consequences. Could you please explain to us the challenges you have faced in managing the Fund as an executive agency that led to this amendment?” he asked.

If passed, the amendment would have given an individual or entity with a legitimate claim to funds or assets the authority to direct that payment or settlement of their claim be made to another person or entity.

In response, Chirchir told the committee that while they agreed with the proposed amendment, the Authority had not exhaustively concluded discussions with the parent ministry – the Ministry of National Finance and Economic Planning on the bill – and was seeking more time to conclude the deliberations. , prompting lawmakers to read foreboding about the issue.

“Dear. Mr President, I just want to say that this is a bill. We have not had enough time to deliberate on the proposed amendment and we would try to get more time,” she told the committee.

Kesses lawmaker Julius Rutto was dissatisfied with the response and wondered how the Authority had not moved away from the purpose of the bill, yet they were expected to implement the proposed law if it was passed.

“The Authority is part of the government. What do you mean when you say this is a bill? We need to know who came up with the bill. We will not allow ourselves to make a law that promotes the interests of others,” Rutto said.

Kitui Rural MP David Mboni noted that the lack of sufficient safeguards in the proposed amendment was a recipe for disaster and warned against hasty consideration of the bill until it is clear what disadvantage it was intended to address.

“Dear. Mr President, we must be very careful with this amendment. What safeguards are in place to ensure that this provision is not abused? What happens if the designated beneficiary transfers before the claim is filed?” he asked.

With similar concerns, Chesumei MP Paul Biego also wanted to know at what point a beneficiary is expected to be designated and what happens in the event of the death of the designated beneficiary.

The substantive chairman, Kuria Kimani, who attended the meeting, later told members that he would also seek clarification from the proposer of the bill on this issue.

Langat instructed them to harmonize their position with the National Treasury before appearing before the committee again in two weeks.

At the same time, members have questioned the fact that accrued interest from unclaimed assets is not passed on to beneficiaries upon claim.

They hinted that the commission would revise the provisions of the law to provide that beneficiaries would receive a share of that interest upon request.