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{
    "id": 1545927,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1545927/?format=api",
    "text_counter": 30,
    "type": "speech",
    "speaker_name": "Sen. M. Kajwang’",
    "speaker_title": "",
    "speaker": {
        "id": 13162,
        "legal_name": "Moses Otieno Kajwang'",
        "slug": "moses-otieno-kajwang"
    },
    "content": "Thank you, Mr. Deputy Speaker, Sir. The county assemblies ought to have considered all these reports because primary oversight is exercised at the county assembly level. In our consideration of the reports, we did not come across any county assembly that had already considered the reports. It would appear as if our brothers and sisters in county assemblies have absconded their primary oversight role to the Senate. Part of the recommendations we are making is on how the Senate can help build the capacity of county assemblies to be able to be the first line of oversight. In terms of findings, the PBO tells us that the fiduciary risks that counties face can be quantified, and it has been quantified to Kshs532 billion. I know you will wonder, the annual transfer to counties does not get to Kshs532 billion. How is it that counties face fiduciary risks of that amount? If you look at that fiduciary risk report, there is a schedule that breaks down fiduciary risks faced by every county government. I want to ask members to take an interest and go to the section that lists the fiduciary risks faced by your county government. Mr. Deputy Speaker, Sir, fiduciary risks are not just issues that come out of budget, but they are risks that the county faces like litigation, unsettled liabilities like pending bills, contingent liabilities, legal fees and assets that have not been properly identified. So, there is a risk that those assets could get lost. What the PBO has told us is if county governments were to be grouped together as a commercial entity, then they would be technically insolvent because in terms of potential liabilities, it far outstrips the potential assets that they have. So, the fiduciary risk faced by county governments as at 2023/2024 amounts to Kshs532 billion against an annual transfer of Kshs400 billion. Mr. Deputy Speaker, Sir, when we come to the specific issues of misappropriation of public resources, the analysis of the PBO tells us that in that financial year, the Auditor-General queried Kshs 87 billion. Now, Kshs 87 billion in a financial year is probably 24 per cent of the money we send to counties. The Auditor-General tells us that 24 per cent of the money we are sending to counties is being misused. The specific issues that underpin the Kshs 87 billion is irregular expenditure, that is, things like penalties and fines, Kshs 9.5 billion expenditure that is avoidable and unaccounted expenditure of Kshs157 million. It is a sad day that in the morning we were struggling to send Kshs 52 billion to county governments and this afternoon we are looking at a report that is telling us that Kshs 87 billion that the Senate sent to county governments cannot be properly accounted for. Mr. Deputy Speaker, Sir, I will give you a few examples. The irregular expenditure of Kshs39 billion in Marsabit County. Marsabit County spends Kshs Kshs16.5 million on insurance for vehicles that are grounded. A figure of Kshs16.5 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."
}