Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1021437,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1021437/?format=api",
    "text_counter": 13,
    "type": "speech",
    "speaker_name": "Hon. Speaker",
    "speaker_title": "",
    "speaker": null,
    "content": "amounting to 50 per cent of the monies allocated to the counties by the County Allocation of Revenue Bill, 2019. The Motion draws on the provisions of Regulation 134 of the Public Finance Management (National Government) Regulations, 2015 and effectively seeks to invoke the vote- on-account process for county governments. The concern which the Leader of the Minority Party seeks to resolve is extremely valid, but as I have noted in this Communication, a vote-on-account in respect of funds of county governments is not tenable at the moment. Hon. Members, in guiding Parliament on how to cushion county governments while resolving any impasse for the passage of a Division of Revenue Bill, the Supreme Court also urged the Speakers of the two Houses of Parliament to entrench its decision in law by initiating appropriate legislative action. Fortunately, well before the determination of the Supreme Court in the Advisory Opinion Reference No.3 of 2019 was issued, the Budget and Appropriations Committee of the National Assembly introduced the Public Finance (Amendment) Bill, 2019 (National Assembly Bill No.63 of 2019) to put in place interim measures to allow county governments to access their minimum share of revenue to enable them to offer services to the public, pending enactment of a Division of Revenue Bill. The Bill was considered and passed by the National Assembly on 18th September 2019 and forwarded to the Senate for consideration. However, this Bill only sought to deal with a scenario where there is an impasse in the passage of the Division of Revenue Bill. Presently, of the two annual revenue bills, only the County Allocation of Revenue Bill is pending. Hon. Members, in view of the strict requirements of the law and in order to put in place a credible mechanism to address the concerns of the county governments on the disbursement of funds, pending the passage of the County Allocation of Revenue Bill, both now and in the future; two options now present themselves to the House. On one hand, the Budget and Appropriations Committee may introduce a Bill proposing amendments to the Public Finance Management Act, 2012 to anchor in law the Vote-on-Account option for disbursement of funds to the county governments, in case of future delays in the passage of the County Allocation of Revenue Bill. Alternatively, having already deliberated on and passed an amendment to the Public Finance Management Act to cater for any delay in the passage of the Division of Revenue Bill, the House may opt to await the consideration, amendment and passage of the Public Finance Management (Amendment) Bill, 2019 (National Assembly Bill No.63 of 2019) by the Senate and expedite its conclusion and presentation for presidential assent. Hon. Members, noting that the proposed amendments to the Public Finance Management Act, 2012 shall require consideration and passage by the two Houses of Parliament, the second option offers a more convenient avenue of averting a financial crisis at the counties within a shorter timeframe. To this end, I have requested the Leader of the Majority Party and the Leader of the Minority Party to urgently engage the Senate Majority and Minority Leadership with a view of fast-tracking the consideration and passage by the Senate of the Public Finance Management (Amendment) Bill (National Assembly Bill No.63 of 2019), with appropriate amendments providing in law the requisite withdrawals from the Consolidated Fund, in the event of any delays in the passage of the annual County Allocation of Revenue Act. This will ensure that the county governments continue to function whether or not there is a stalemate or delays in the passage of either of the two Annual Revenue Bills, both now and in the future. Hon. Members, I remain confident that the Senate will rise to the occasion and dispense with the Bill with its usual diligence on matters integral to the protection of devolution. On the part of the National Assembly, the House Business Committee (HBC) and the Budget and Appropriations Committee are already seized of the matter. As the Chairperson of the House 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."
}