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{
    "id": 1378717,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1378717/?format=api",
    "text_counter": 373,
    "type": "speech",
    "speaker_name": "Navakholo, ODM",
    "speaker_title": "Hon. Emmanuel Wangwe",
    "speaker": null,
    "content": "In considering the audit accounts of State corporations, the Committee was guided by the Constitution of Kenya, statutes and declarations. There are numerous statutes which we have referred to. We made general observations and recommendations which cut across all the 23 State corporations. I may cite a few in the interest of time. In the consideration of the management submissions of the various State corporations, the Committee noted cross-cutting matters. The Committee was guided by Article 95 of the Constitution on the role of the National Assembly as well as its mandate under the National Assembly Standing Order 206(b) and strategic objectives that each of the State corporations is expected to achieve. The Committee was further guided by Section 15(2) of the State Corporations Act, 1986 which states that the Chief Executive Officer of a State corporation may be summoned by the Public Investments Committee to answer, on behalf of the board, any question arising from a report, including a special report of the Auditor-General concerning the State corporation. Hon. Temporary Speaker, cross-cutting issues were lack of autonomy in budgeting, appropriations and budgetary controls. The Committee observed that Article 226(1)(b) of the Constitution and Section 67(3) of the Public Finance Management Act (PFM) of 2012 provide that the Cabinet Secretary for the National Treasury shall ensure that there is an accounting officer in each national Government entity. Most of the 23 State agencies did not have a designated accounting officer against that rule of the Constitution. Firstly, the operating State corporations have been receiving funds as itemised in the budgets in the line ministries rather than receiving grants directly. The entities lack the autonomy to control their budgets as payments are made by the line ministries as and when a need arises. That is not accounting. Having gone through the PSC Report, the position an accounting officer takes in any organisation is very vital and goes to the root of running the organisation. Secondly, we noted lack of accountability of public funds and a failure to prepare and submit financial statements to the Auditor-General for audit. Whereas the establishing Acts provide that an entity shall present the financial books of accounts to the auditor for audit, those organisations did not have any statement to present to the Auditor-General. Therefore, we found it necessary that we report to the House that those parastatals have erred in law and we have all the reasons to present them as non-compliant. 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"
}