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{
    "id": 1095400,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1095400/?format=api",
    "text_counter": 259,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "in the course of the year and report the same to the shareholders to assure them that their money has been applied in furtherance to the objectives of the company. That all stems from the old practice of Agency Theory where the shareholders will have certain expectations of what they want to do. They then appoint their agents who become the directors and who then hire managers. The two are usually at variance in terms of their expectations. The shareholders may want one thing done, the directors one and the managers another. You now need the auditor to come, look and assure the principals that their agents behaved in exactly the same way as they would have wished and provided them with value for money. In our situation, the principals are the people of Kenya. The people of Kenya have elected an Executive headed by the President, given them certain mandates and monies and asked them to go ahead and execute and account back to them. Since Kenyans cannot receive those audit reports or be called to an annual general meeting to receive the reports of the auditors, they have appointed the National Assembly which represents them in that AGM on a continuous basis. We represent all those people and receive their reports in terms of what the Executive has done. Hon. Members, you will recall that we are actually the ones who appoint the Auditor- General. However, the Auditor-General himself needs to be audited and hence, we, on behalf of the people, we are being called upon again this afternoon to also get an auditor to audit our auditor who we appointed to audit the Executive and all the other independent institutions. Hon Aden Duale has enumerated the issues that we need covered. I do not want to go through that. Most importantly, has the money that we have given to the Office of the Auditor-General been applied to the right purposes? That is the standard. The independent auditor will also be expected to test and verify that the Auditor-General has applied auditing standards and performed work in accordance with the highest possible standards in carrying out the audits of the Executive. So, it is a two-way thing: value for money and quality control. I expect that when we receive the reports for the 2018/2019, as well as the 2019/2020 financial years, we will make them our responsibility. I know the Chairman of the Public Accounts Committee (PAC) has stepped out, but I know there are still some Members here. I would like to emphasise that when M/s Ronalds LLP gives their report and appears before PAC - which I hope they will, so as to present that report to you on our behalf – some of the things that you will expect them to take you through are what the Auditor- General has been doing, how they have been applying the monies and why we are having issues in the counties. You visit the counties and do not need to be told who owns what. Everyone is saying how that building is now owned by the chief officer of the county, yet the local bank manager does not tell you that the so-called person has applied for a loan. You can see the lifestyle changes within the counties. We would like to see what the Auditor-General is doing, particularly at the county level, so that even as we see development and people becoming development-conscious courtesy of the devolved funds at the personal level, we also want to be sure that it is not our money that is getting personalised. Those are the things that we want to hear from the Auditor-General. If the Auditor- General has not told us that, we would want to hear from M/s Ronalds LLP that they also went back to those areas where the Auditor-General has given very clean audits and have also concurred with the Auditor-General. This is so that those lifestyle issues that are basically like sore thumbs that show that things could be wrong up there can actually be done at the second level. M/s Ronalds LLP should not just look at their job as going to look at the books of the Auditor-General. We want them to give us quality control and quality assurance that the Auditor-General has done everything possible to uncover how our money is being used, not just at the national level, but 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."
}