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{
    "id": 1419873,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1419873/?format=api",
    "text_counter": 246,
    "type": "speech",
    "speaker_name": "Sen. Osotsi",
    "speaker_title": "",
    "speaker": {
        "id": 13588,
        "legal_name": "Osotsi Godfrey Otieno",
        "slug": "osotsi-godfrey-otieno"
    },
    "content": "(1) Most funds were established based on regulations drawn from the Public Finance Management (PFM) Act, 2012, which is a national legislation, raising concerns on the legality and effectiveness of the offices of the county attorneys. You can only generate regulations on national legislation if you are the Cabinet Secretary. Counties have no powers to generate regulations on a national legislation on their own. We noted that several counties have come up with regulations to manage Funds based on the PFM Act. We have had to give directions to the counties to regularize that and have a correct set of regulations in place. (2) Low recovery rate of loans advanced by revolving funds to beneficiaries, risking the continuity and sustainability of the funds. For example, Kitui Empowerment Fund had advanced loans amounting to Kshs150 million, but had only managed to recover Kshs3 million, raising concerns over its sustainability. There are many other counties like Trans Nzoia, Tana |River among others. As a committee, we need to decide on whether counties should continue having the so-called revolving funds. We noted that in some cases, these funds are used to distribute money to politically correct groups, especially during election period. We noted that several counties gave out money between the months of June and September 2022, which was an election period. Those loans have not been recovered to date. Most car loan and mortgage funds are advanced to county executive staff without securing the interests of the county by charging their assets such as land and vehicles. Most loans were given in an ad hoc manner. No security, no charging of property. This is a major loophole for pilferage of funds in our counties. Mr. Temporary Speaker, Sir, the fourth major observation, we had instances of multiple allocations of bursaries to a single beneficiary. There was also lack of acknowledgment of receipts by the benefiting institutions and cheques that remained unrepresented leading to stale cheques. When you look at the bursary fund and the way it is being managed in a county, you wonder why governors are putting money in bursary funds when bursary is a national Government function. Most of these monies cannot be accounted for. They cannot give a valid list of institutions where they gave bursaries or students who have benefited and there is no acknowledgment. In some of the counties, for example, Bungoma County, we had serious concerns and we have referred that matter to the EACC for further investigation. The fifth observation is that we have counties utilizing money allocated to emergency funds but failed to seek the necessary approval from the county assemblies as required under Section 114 of the Public Finance Management (PFM) Act 2012. We have a scenario where emergency funds are utilized and the governors do not go back to the County Assembly to regularize the approval funds for emergencies. That is common in most counties. In some counties we had instances where they have even overshot the threshold, giving out money more than the required threshold of two per cent. The sixth observation is on irregular inter-fund borrowing where money is moved from one fund to another without following the laid-down procedures. You find a The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}