Auditor: ICT authority is technically insolvent

Ali,

This…

“The auditor, in a report tabled in the National Assembly last week, said
the agency’s liabilities of Sh1.6 billion exceed its Sh386 million
assets…”

What a difference a couple of years makes 🙁

Rgds

On Mon, Oct 22, 2018 at 10:44 AM, Admin CampusCiti via kictanet <
kictanet@lists.kictanet.or.ke> wrote:

> I’m curious to understand this insolvency conclusion.
>
> Just picked up this explanation of insolvency from Wikipedia.
>
> *Insolvency* is the state of being unable to pay the money owed, by a
> person or company, on time; those in a state of insolvency are said to be
> insolvent. There are two forms: cash-flow insolvency and balance-sheet
> insolvency.
>
> *Cash-flow insolvency* is when a person or company has enough assets to
> pay what is owed, but does not have the appropriate form of payment. For
> example, a person may own a large house and a valuable car, but not have
> enough liquid assets to pay a debt when it falls due. Cash-flow insolvency
> can usually be resolved by negotiation. For example, the bill collector may
> wait until the car is sold and the debtor agrees to pay a penalty.
>
> *Balance-sheet insolvency* is when a person or company does not have
> enough assets to pay all of their debts. The person or company might
> enter bankruptcy, but not necessarily. Once a loss is accepted by all
> parties, negotiation is often able to resolve the situation without
> bankruptcy.
>
> A company that is balance-sheet insolvent may still have enough cash to
> pay its next bill on time. However, most laws will not let the company pay
> that bill unless it will directly help all their creditors. For example, an
> insolvent farmer may be allowed to hire people to help harvest the crop,
> because not harvesting and selling the crop would be even worse for his
> creditors.
>
> I suggest that we don’t consume news that is shallow and half baked. This
> is a critical government agency and sensationalism does no one any favors.
> The editors have a fiduciary responsibility to expound and give us an
> in-depth expose of what the auditor’s report actually says and an
> interpretation of what it means.
> My two cents.
>
> *Ali Hussein*
>
> +254 0713 601113
>
> Twitter: @AliHKassim
>
> Skype: abu-jomo
>
> LinkedIn: ke.linkedin.com/in/alihkassim
> <ke.linkedin.com/in/alihkassim>
>
> Blog: www.alyhussein.com
>
> “Discovery consists in seeing what everyone else has seen and thinking
> what no one else has thought”. ~ Albert Szent-Györgyi
>
> Sent from my iPad
>
> On 22 Oct 2018, at 8:07 AM, S.M. Muraya via kictanet <
> kictanet@lists.kictanet.or.ke> wrote:
>
> Priorities, priorities, priorities..
>
> Auditor: ICT authority is technically insolvent
>
> www.nation.co.ke/news/Auditor–ICT-authority-is-
> technically-insolvent/1056-4816222-1ob4pwz/index.html
>
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people’s times and bandwidth,
> share knowledge, don’t flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
>

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