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{
"id": 1393157,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1393157/?format=api",
"text_counter": 326,
"type": "speech",
"speaker_name": "Pokot South, KUP",
"speaker_title": "Hon. David Pkosing",
"speaker": null,
"content": "question is: How did we arrive where we are? My Committee held more than 38 Sittings in which we extensively examined the Reports of the Auditor-General on the audited financial statements of those 5 institutions which I have submitted to you and the House. I am inviting the Hon. Members to support. I remember in the first induction of the Liaison Committee held in Kisumu, we were guided that the Public Investments Committee should include public participation in their reporting. My Committee tried to comply. Further, the Committee also limited itself to schedules and the agencies that I have mentioned. Before I delve into those organisations that I have presented to you, what is the model of our Report? It contains the audit query, management responses and public participation. We brought in the major stakeholders that are concerned by that audit query, which is the third level of the structure of our reporting. We also have observations of the Committee. Having listened to the entities in the management report and other stakeholders who we sometimes refer to as the roundtable, we cannot conclude an audit query unless we include all stakeholders concerned and thereafter, make our recommendations. That is the structure of the Report that is before you. Allow me to delve into the organisations or agencies which we have presented to you to show how we examine this Report using the infrastructures that I have mentioned. I will start with the Central Bank of Kenya (CBK) where the Auditor-General brought in a query concerning the Kenya School of Monetary Studies (KSMS), which took us a long to examine. KSMS, as everybody knows, offers in-service training for Central Bank of Kenya (CBK) staff. For some reason, and some time back, that organisation was made like a legal entity or parastatal. It was in-between. The Board of Directors of CBK was also the Board of Directors of KSMS. So, they were earning twice. They would work at the CBK and then after that go to KSMS - and you know where it is - and earn allowances. The Auditor General said that those people were earning twice and yet, that institution should be like a department. What happened? CBK and the National Treasury, which are like shareholders, agreed at one point to dissolve it or make it a department of CBK. After everything was done, something happened, which caught the eye of the Auditor-General. They had passed a resolution to dissolve KSMS and make it a department under the CBK. Somebody in CBK wrote a letter to the Attorney- General and asked that, that process should not conclude. Then it stopped. That is why it was brought to my Committee. I think those entities should be led by the public, not individual interest. When the Auditor- General was auditing the books, she asked: ‘Why not proceed with the dissolution of KSMS?’ That is because of the reason I have just stated, double payment of directors of CBK. When we interrogated it, we brought in the CBK, KSMS, the Attorney- General and the Solicitor-General and asked them to table the reasons why it could not be concluded to dissolve it as an agency and make it a department under CBK. The National Treasury failed to defend itself before my Committee. We then said that they could not earn from both sides. Further, we asked the National Treasury where they would get money to fund KSMS, if we were to make it a parastatal. They failed because they said they could look at other financial institutions to fund it. We thought that was not a dream that could be realised. So, we recommended before the House that, that institution be made a department under the CBK. CBK defended it. One, you cannot earn from two institutions. Secondly, it is funded 100 per cent by CBK. Third, it offers in-service training to our able officers of CBK. So, there was no reason why it could not be a department of CBK. We asked ourselves what was the reason for separating the institution. The National Treasury would have no money to run it. We agreed with the resolutions that had been earlier proposed and therefore, declined the proposal by the National Treasury because we found that something was missing and some people were being driven by private rather than public interests. In that case, we recommend that KSMS be dissolved and be made a department under CBK. 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"
}