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{
    "id": 1275818,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1275818/?format=api",
    "text_counter": 342,
    "type": "speech",
    "speaker_name": "Sen. Osotsi",
    "speaker_title": "",
    "speaker": {
        "id": 13588,
        "legal_name": "Osotsi Godfrey Otieno",
        "slug": "osotsi-godfrey-otieno"
    },
    "content": "“The Cabinet Secretary shall submit to the National Assembly by 30th April in every year a report on debt status and the borrowing undertaken by the national Government.” Mr. Temporary Speaker, Sir, this Clause ignores the role of the Senate. Article 225 (1) of the Constitution on financial control, states – “An Act of Parliament shall provide for the establishment, functions and responsibilities of the national Treasury.” Article 225 (2) talks about - “Parliament shall enact legislation to ensure both expenditure control and transparency in all governments and establish mechanisms to ensure their implementation.” Article 225(2) clearly implies that the Senate has a role in financial control in determining expenditure control and transparency in all governments. All governments include even county governments. This particular Clause offends Article 225 of the Constitution that requires involvement of Parliament, in this case, the National Assembly and the Senate. Hon. Senators, I implore you that we should not pass this Bill unless the amendments that recognize the role of the Senate are included in this Bill. I have also noticed that the amendments that requires the Cabinet Secretary to determine by regulation that all or part of the public debt or resulting financial obligation is a charge on another public fund, it is unconstitutional. If you refer to Article 214(1) of the Constitution on public debt, it is very clear. It states– “The public debt is a charge on the Consolidated Fund, but an Act of Parliament may provide for charging all or part of the public debt to other public funds.” The Cabinet Secretary for National Treasury wants to give himself powers that he does not have by circumventing an Act of Parliament and bringing in regulation. The Constitution does not refer to regulation. It refers to an Act of Parliament. The reading of that Amendment offends the Constitution and makes this Bill unconstitutional. I agree with my colleagues who have suggested the amendment to amend the debt threshold to 55 per cent of the GDP in present value terms. I support that. However, that can only work if you have an economy that is thriving; where the cost of living is managed, there is no inflation, and it is stable. The period given of five years is short. I think we are going to have a challenge of attaining the 55 per cent threshold because of the current economic situation in our country. Mr. Temporary Speaker, Sir, this Bill also seeks to amend the Public Finance and Management (PFM) Act since it makes reference to the public debt and not the national debt. I even wonder where they got the word ‘national debt’ from because it is a strange term in the Constitution. It forgets about the county government. I, therefore, agree with the amendment. The PFM Act needs to be amended so that any reference to the national debt is replaced with public debt."
}