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"speaker_name": "Sen. Osotsi",
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"speaker": {
"id": 13588,
"legal_name": "Osotsi Godfrey Otieno",
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"content": "Hospitals not submitting their financial statements to the Auditor-General for audit points to a wanting level of compliance with the reporting requirements as stipulated in the Public Finance Management (PFM) Act, 2017. Madam Temporary Speaker, we have noted a number of counties, which have not been submitting reports financial report to the Auditor-General. This includes Nairobi City and Narok counties and others. As a committee, we have agreed to invite these counties to explain to us why they have not been submitting financial statement for their hospitals because it is contrary to the Public Audit Act, 2015 and the PFM Act, 2017. From the reports of the Auditor-General on hospitals, the committee observed that nearly all hospitals in counties were ill-equipped and ill-prepared for Universal Health Care (UHC) as they were understaffed to offer critical services required such as radiology, dialysis and other specialized medical care. We broke new grounds by starting to investigate the reports for municipalities. This was new to the Senate, which had not been looking at municipalities. The data available indicates that there are 110 gazetted municipalities established by 45 counties with Nairobi and Mombasa cities deemed to be Nairobi and Mombasa counties as stipulated by Sections 6 and 27 of the Urban Areas and Cities Act, Cap 275. Kiambu County records the highest number of municipalities with 12 municipalities. The committee noted that most of municipalities lacked autonomy in terms of their functions, management and finances. That adversely affect the performance of various municipalities in service delivery in our counties. We noted that the Department of Lands and Physical Planning has been running most of these municipalities contrary to the law. We will be coming up with the financial audit report for all the municipalities in the country. We hope that this will be another major source of own-source revenue in our counties. With proper governance, we will see a rise in the level of own-source revenue. During the period under review, the committee met with key stakeholders, including the Attorney General and Auditor-General to deliberate on various matters affecting counties. The Committee has also adopted 108 reports of all the water companies in Kenya. We have processed them for tabling and debate in the House. This is the first level of audit reports for these water companies. From next year, the committee will be starting the second level of review of the audit report for water companies, which includes the current reports up to the year ended 2023. The Committee plans to conduct fact-finding visits to various counties subject to availability of funds, to inspect the water companies, do report writings and continue to interrogate audit reports of hospitals, municipalities and corporations in counties. In conclusion, Madam Temporary Speaker, from the interactions with different county executives, the committee continues to observe that there is an apparent wastage and misappropriation of public resources in our counties, particularly the public funds established in our counties. Of concern is the bursary funds in our counties. Bursary funds in our counties have been misappropriated. This House has to take a stand that it is high time we abolished The electronic version of the Senate Hansard Report is for information purposes only.A certified version of this Report can be obtained from the Director, Hansard and Audio Services,Senate."
}