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"id": 1464446,
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"type": "speech",
"speaker_name": "Hon. (Dr) Ojiambo Oundo (",
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"content": "it correctly because my gadgets are on the other side, ought to go to the OAG and apply the strict professional standards that everybody expects them to. As it was reported when we were in the Committee, the Clerk of the National Assembly clearly admitted that they are having challenges in getting as many audit firms as possible to participate in the tendering process to find an auditor for the OAG. The reason is very simple. By the very large volume of work, the OAG as we were told, occasionally, outsources some of its work to audit firms in this country. Obviously, there is a conflict of interest, and they find this other side to be, probably, with better pay than waiting to audit the OAG for something less. Probably, in the fullness of time, we might have to find separate mechanisms even if it means going beyond the boundaries and the borders of Kenya so that the tendering and procurement process can have some meaning. Having only two firms participating, and one by design and/or by coincidence is knocked off completely at the technical evaluation stage... I even do not know which words to use for that. I cannot imagine an audit firm the class and standard of Nelson and Francis LLP presenting a forged tax compliance certificate. Was it by convenience? Was it by conveyor complicity so that we have a straight-line process to the end for PKF? How reckless can they be yet the audit firms are listed on the stock exchange in this country? Is the financial sector in this country safe or not? Hon. Temporary Speaker, we need to re-look at the architecture of things because we are very likely going to have a monopoly. I was in the corporate world before I transitioned to academia. It is a basic rule that no audit firm should audit one company for three consecutive financial years. The reason for the continuous change is to ensure there is objectivity, fairness, and ability to pick out hidden account malady in any accounting records. We let PKF to audit the OAG for three consecutive financial years. In this particular tender, they will audit for two financial years. So, in totality, they would have audited for five financial years, which is against basic corporate governance structures in this country and all over the world. I call upon this Parliament, in its wisdom, next time it should tender knowing that very few Kenyan firms will wish to participate. So, please, make it an East African tender so that we can get an audit firm from Uganda, Tanzania, or even Somalia for a fair and competitive tendering process. Also, as a matter to note, the auditing process has gone beyond looking at the profit and loss account and preparing the balance sheet only. Auditing has gone out of the way to look at standing operation procedures. Is the Office of Auditor-General adequately resourced to undertake its tasks? In very many cases, it is not. We hope this Report will inform this Parliament or any subsequent Parliament to ensure that the OAG is adequately funded and resourced to have manpower with the technical ability and relevant experience to audit the very many Government entities they now are being forced to audit. They now have to audit primary schools, secondary schools, and other educational institutions. Hon. Temporary Speaker, both of us know how many those are, and how badly their books of accounts are maintained and need to be re-looked. Secondly, and this we must tell each other in this country without fear of sugar-coating any matter, the OAG is populated by the typical Kenyan who is driven by typical personal gain instead of public good. If you sit and talk to the accounting officers, they have very harrowing experiences with the officers sent to audit various Government entities. We have continuously said this. The Office of the Auditor-General also needs to be audited in terms of personal integrity and professionalism in the discharge of work. Whenever many of the reports produced by the Office of the Auditor-General are subjected to a test in any court of law, they fall short. That is why you do not get many convictions arising from the report of the Auditor-General. As a country, we must re-look at it, because the alternative is for us to continuously perpetuate corruption and then use the Office of the Auditor-General to cover it up. 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."
}