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"id": 1464442,
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"type": "speech",
"speaker_name": "Butere, ODM",
"speaker_title": "Hon. Nicholas Mwale",
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"content": "This report is basically straightforward and brief. I, therefore, wish to request the House to adopt our report and approve award of the audit services to PKF Kenya Limited."
},
{
"id": 1464443,
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"type": "speech",
"speaker_name": "Butere, ODM",
"speaker_title": "Hon. Nicholas Mwale",
"speaker": null,
"content": "In a nutshell, just to conclude, before I request my colleague Hon. Oundo to second, the genesis of this report is Article 226(4) of the Constitution which gives the National Assembly powers to appoint a qualified accounting firm that will audit the operations and efficiency of the Office of the Auditor-General. It is on that basis that the Accounting Officer of the National Assembly, the Clerk of the National Assembly, contacted the Public Accounts Committee to go through the process and request the House through this report to approve PKF Kenya LLP partnership as the accounting firm which will audit the Office of the Auditor- General. As we know for us to have effective use of our taxpayer’s money we need to have a strong, robust and efficient accounting firm. This accounting firm is the Office of the Auditor- General. We appreciate the Report and the work of the Office of the Auditor-General (OAG), but we want to have an independent firm that is going to help this House and Kenyans in general, to audit the operations of the OAG. That is why I am pleading with the House to accept this Report. We should allow PKF Kenya to begin its work of auditing the operations and efficiency of the OAG. In conclusion, Hon. Temporary Speaker, I have heard and seen Members who have congratulated His Excellency the President, Dr William Samoei Ruto, for appointments in the Broad-Based Government. I want to take this opportunity as the Vice-Chairman of the Public Accounts Committee to congratulate and appreciate the President for nominating our Chairman, Hon. John Mbadi. By the President appointing Hon. John Mbadi, he ascertained that the Public Accounts Committee has leaders who are brilliant enough to lead this country even at the higher echelons of power, including the Ministry of National Treasury and Economic Planning. I want to assure this House that this Committee is committed and that it is efficient. This Report has been evaluated well by the Committee and I believe that if we pass it, we will make sure that the operations at the OAG are effective, transparent, and of benefit to Kenyans. I want to stop there and request my colleague, a Member of the Committee, Hon. Oundo, the Member of Parliament for Funyula to second the Report. Thank you."
},
{
"id": 1464444,
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"type": "speech",
"speaker_name": "Hon. Peter Kaluma",
"speaker_title": "The Temporary Speaker",
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"legal_name": "George Peter Opondo Kaluma",
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"content": " Thank you, Hon. Vice-Chairman, Public Accounts Committee. Hon. Wilberforce Oundo, proceed to second."
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{
"id": 1464445,
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"type": "speech",
"speaker_name": "Hon. (Dr) Ojiambo Oundo (",
"speaker_title": "",
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"content": "Funyula, ODM): Thank you, Hon. Temporary Speaker. I stand to second the Motion by the Public Accounts Committee of the National Assembly of the Republic of Kenya in its Report proposing the appointment of an audit firm to audit the Auditor-General. This House, by dint of the Constitution of Kenya, appropriates funds to the OAG as required by the Constitution in order to enable them to undertake the works or assignments mandated to them under the Constitution and the relevant Acts of Parliament. Concomitantly, the House must, therefore, audit or oversee the funds that have been appropriated to confirm and satisfy themselves that they have, indeed, utilised those funds as provided for under the Constitution, any written law, and relevant operational procedures or manuals. This is to ensure there is value for money and efficiency. We have always said that power corrupts, and absolute power corrupts absolutely. If you give the OAG funds and there is no hint at all in law that you have to check if they have used those funds prudently, then there will be a tendency to misuse and misappropriate those funds due to human nature. That is why the drafters of the Constitution in their wisdom said the Auditor-General must also be audited. Of course, it is ironical because it is the Auditor- General who is supposed to catch the thief. The PKF firm, and I hope that I have pronounced The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
},
{
"id": 1464446,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1464446/?format=api",
"text_counter": 327,
"type": "speech",
"speaker_name": "Hon. (Dr) Ojiambo Oundo (",
"speaker_title": "",
"speaker": null,
"content": "it correctly because my gadgets are on the other side, ought to go to the OAG and apply the strict professional standards that everybody expects them to. As it was reported when we were in the Committee, the Clerk of the National Assembly clearly admitted that they are having challenges in getting as many audit firms as possible to participate in the tendering process to find an auditor for the OAG. The reason is very simple. By the very large volume of work, the OAG as we were told, occasionally, outsources some of its work to audit firms in this country. Obviously, there is a conflict of interest, and they find this other side to be, probably, with better pay than waiting to audit the OAG for something less. Probably, in the fullness of time, we might have to find separate mechanisms even if it means going beyond the boundaries and the borders of Kenya so that the tendering and procurement process can have some meaning. Having only two firms participating, and one by design and/or by coincidence is knocked off completely at the technical evaluation stage... I even do not know which words to use for that. I cannot imagine an audit firm the class and standard of Nelson and Francis LLP presenting a forged tax compliance certificate. Was it by convenience? Was it by conveyor complicity so that we have a straight-line process to the end for PKF? How reckless can they be yet the audit firms are listed on the stock exchange in this country? Is the financial sector in this country safe or not? Hon. Temporary Speaker, we need to re-look at the architecture of things because we are very likely going to have a monopoly. I was in the corporate world before I transitioned to academia. It is a basic rule that no audit firm should audit one company for three consecutive financial years. The reason for the continuous change is to ensure there is objectivity, fairness, and ability to pick out hidden account malady in any accounting records. We let PKF to audit the OAG for three consecutive financial years. In this particular tender, they will audit for two financial years. So, in totality, they would have audited for five financial years, which is against basic corporate governance structures in this country and all over the world. I call upon this Parliament, in its wisdom, next time it should tender knowing that very few Kenyan firms will wish to participate. So, please, make it an East African tender so that we can get an audit firm from Uganda, Tanzania, or even Somalia for a fair and competitive tendering process. Also, as a matter to note, the auditing process has gone beyond looking at the profit and loss account and preparing the balance sheet only. Auditing has gone out of the way to look at standing operation procedures. Is the Office of Auditor-General adequately resourced to undertake its tasks? In very many cases, it is not. We hope this Report will inform this Parliament or any subsequent Parliament to ensure that the OAG is adequately funded and resourced to have manpower with the technical ability and relevant experience to audit the very many Government entities they now are being forced to audit. They now have to audit primary schools, secondary schools, and other educational institutions. Hon. Temporary Speaker, both of us know how many those are, and how badly their books of accounts are maintained and need to be re-looked. Secondly, and this we must tell each other in this country without fear of sugar-coating any matter, the OAG is populated by the typical Kenyan who is driven by typical personal gain instead of public good. If you sit and talk to the accounting officers, they have very harrowing experiences with the officers sent to audit various Government entities. We have continuously said this. The Office of the Auditor-General also needs to be audited in terms of personal integrity and professionalism in the discharge of work. Whenever many of the reports produced by the Office of the Auditor-General are subjected to a test in any court of law, they fall short. That is why you do not get many convictions arising from the report of the Auditor-General. As a country, we must re-look at it, because the alternative is for us to continuously perpetuate corruption and then use the Office of the Auditor-General to cover it up. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
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"id": 1464447,
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"text_counter": 328,
"type": "speech",
"speaker_name": "Hon. (Dr) Ojiambo Oundo (",
"speaker_title": "",
"speaker": null,
"content": "Hon. Temporary Speaker, I hope PKF Kenya will be bold enough. Rather than just audit the books of accounts, they should go out in the field and interview those entities which are audited by the Auditor-General. They can share with them the experience of being audited by the Auditor-General, so that we can come to fore, and say exactly what is happening. When they come to audit NG-CDF accounts, many a time, they deliberately write very adverse reports. Before they are admitted here in Parliament, they sneak them to the media which now splashes, ‘A certain Member of Parliament has eaten bursary money.’ A Member of Parliament is not an accounting officer. He does not go to every single school asking for a receipt to confirm whether the bursary money has been sent. The officers in the Office of the Auditor- General must be infused with adequate professionalism, so that Kenyans can get value for money. As I conclude, I also want to tell the Office of the Auditor-General that there are no sacred cows in this country. There are no stones that are not capable of being turned. They must go out there and pick out the rot, starting with the county governments, as well as the national Government. We can save this country a lot of money. We do not have to borrow money. The Office of the Auditor-General is the backbone that can save this country. Let them go out and pick the rot. How do you explain a Cabinet Secretary affording to buy a house of Ksh215 million on a salary of less than a million shillings? How is that possible, yet that person has never been dragged to any court of law? Even if he is dragged to any court of law, the evidence is so weak that it cannot sustain a conviction. Hon. Temporary Speaker, I support the Motion."
},
{
"id": 1464448,
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"text_counter": 329,
"type": "speech",
"speaker_name": "Hon. Peter Kaluma",
"speaker_title": "The Temporary Speaker",
"speaker": {
"id": 1565,
"legal_name": "George Peter Opondo Kaluma",
"slug": "george-peter-opondo-kaluma"
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"content": " Hon. Tindi Mwale and Hon. (Dr) Wilberforce Oundo, confirm to us that you have seconded the Motion. Did you second?"
},
{
"id": 1464449,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1464449/?format=api",
"text_counter": 330,
"type": "speech",
"speaker_name": "Funyula, ODM",
"speaker_title": "Hon. (Dr) Ojiambo Oundo",
"speaker": null,
"content": " For record purposes, I second the Motion."
},
{
"id": 1464450,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1464450/?format=api",
"text_counter": 331,
"type": "speech",
"speaker_name": "Hon. Peter Kaluma",
"speaker_title": "The Temporary Speaker",
"speaker": {
"id": 1565,
"legal_name": "George Peter Opondo Kaluma",
"slug": "george-peter-opondo-kaluma"
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"content": " As I was saying, in your contributions in moving this particular Motion, you have confirmed to us that Parliament always outlives whoever the Member is. We do not feel that Hon. John Mbadi is now not the Chairperson of the Public Accounts Committee (PAC). Congratulations. Hon. Members, let me now propose this Question, so that the House may debate."
},
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"id": 1464451,
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"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "(Question proposed)"
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