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{
    "id": 1352621,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1352621/?format=api",
    "text_counter": 2381,
    "type": "speech",
    "speaker_name": "Balambala, JP",
    "speaker_title": "Hon. Abdi Shurie",
    "speaker": {
        "id": 13294,
        "legal_name": "Abdi Omar Shurie",
        "slug": "abdi-omar-shurie-2"
    },
    "content": "any public debt-related activities. During the review of the Report, it was noted that information pertaining to loan balances brought forward and carried down, amortisations and borrowings undertaken by national Government entities were among the key pieces of information that were left out of the Report. This made it hard to determine the overall impact of the loans acquired on the overall debt stock. Hon. Temporary Speaker, there is a need to go beyond the parameters that are set for oversight and apply innovation to achieve effective and efficient use of resources for the country. This can be done through the submission of project-specific information when the Reports are submitted to Parliament. There are benefits to this end. First and foremost, this will enable the National Assembly to review the quality of projects financed by loans contracted. Therefore, it will firm up the country's repayment capacity. It will also streamline the project assessment and appraisal process. Secondly, this will guarantee the efficient utilisation of resources and maximise the benefits accruable from the selected projects before the commencement of the loan repayment. This will promote confidence in the national Government processes and public debt regulatory institutions, which may ultimately contribute to the deduction of borrowing costs by our international development partners. Hon. Temporary Speaker, after consultative engagements, the Committee makes several recommendations for consideration by the House. To mention but a few, the Committee recommends: 1. Subsequent reports submitted by the National Treasury should ensure full compliance with Section 31(1) and (3) of the PFM Act, 2012. 2. The National Treasury should ensure that the reports indicate all loans made to the national Government, national Government entities, and county governments, as well as loan balances, brought forward, and carried down, drawings and amortizations on new loans. 3. Quarterly reporting on project/programme loans should be guided by programme-based budgeting principles, and the respective project valuations, appraisals, and assessment reports should be attached. 4. To facilitate oversight of debt and to promote transparency and accountability of loans and contracts entered into, the National Treasury should attach the contracts signed against each submitted report and should not enter into any contract that does not adhere to the principles of public finance as set out under Article 201 of the Constitution. 5. The National Treasury should address factors affecting timely and full disbursement of loan financing and submit a report to the National Assembly within 60 days of adopting this Report, indicating actions taken to increase the efficient disbursement of loan financing. 6. Within 90 days, the National Treasury should fully digitise the loan approval and monitoring system to enhance reporting, transparency and accountability. This should also include training technical personnel and establishing a system accessible to other public finance management institutions such as the Central Bank of Kenya (CBK), the Office of the Controller of Budget and the Office of the Auditor-General. In conclusion, the Committee also noted that reforms relating to public debt management have lagged, even as strides have been made in other areas of public finance management, such as enhancing procedures for revenue collection and expenditure determination. As such, the Committee is dedicated to addressing gaps prevalent in the legal framework relating to reporting, transparency and accountability in loan appreciation and the 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."
}