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{
"id": 181280,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/181280/?format=api",
"text_counter": 162,
"type": "speech",
"speaker_name": "Ms. Karua",
"speaker_title": "The Minister for Justice, National Cohesion and Constitutional Affairs",
"speaker": {
"id": 166,
"legal_name": "Martha Wangari Karua",
"slug": "martha-karua"
},
"content": " Mr. Deputy Speaker, Sir, I beg to reply on behalf of the Minister for Regional Development Authorities (a) The Lake Basin Development Authority has received a total of Kshs4,310,138,793.50 as funding from both the Government and other sources during the last 20 years. The details of the funding are indicated in Table 1, which I present before the House. (b) The Lake Basin Development Authority has undertaken many development projects and programmes in areas within its jurisdiction in the last 20 years. Details of the major projects and programmes are indicated in Table 2, which I present before the House. (c) The Lake Basin Development Authority has had 20 routine audits carried out by the Kenya National Audit Office on a annual basis, and an audit certificate duly issued for the audited account. Copies of all the audit reports have also been sent to the Clerk of the National Assembly in compliance with the Exchequer and Audit Act, Cap.412. A total of seven special audits have been carried out over the same period. Key issues raised in the audits and their current status are as follows:- Between 1989 and 2007, Lake Basin Development Authority has been operating under fiscal and financial constraints due to a shortfall in Government grants and costs incurred on a bank overdraft of Kshs3,000,000 obtained from the National Bank of Kenya in 1999. The principal sum and interest accrued stood at Kshs958,815,666.20 as at May, 2007. That is close to Kshs1 billion. The total sum was however discharged by the Government in May, 2007, and that has greatly improved the Lake Basin Development Authority's financial position. Under the Lake Basin Development Authority headquarters building and staff building housing complex, a figure of Kshs312,389,212 in respect of work in progress which had been reflected in the Authorities' October 30, 2008 PARLIAMENTARY DEBATES 3181 balance sheet since 2003 has featured severally as a major audit issue. The contract sum of Kshs396,650,283 was under a contractual period of 72 weeks. However, the above projects stalled in 1992 due to lack of adequate funding from the Government. Only 20 per cent physical work valued at Kshs190,184,531.50 in 2007 had been done. There is a pending court case over the irregular disposal of the Authorities 262 acres of land curved out of the Muhoroni Livestock Multipurpose Centre without prior approval from the board and the Government. A case involving the fraudulent transfer of the Authority's plot and house at Milimani, plot number, Kisumu Block 2/210 of Huruma Road by a former employee to his name is also pending at the Kenya Anti-Corruption Commission's (KACC's) offices. Over the years, the long outstanding debtors balance has risen to Kshs136,992,257.25 as at 30th June, 2007. This was as a result of an overpayment of Kshs122,269,659.10 to China Jingsu for the construction of the rice mill. The Authority is currently pursuing the matter through their lawyers to recover the same. The Authority has been unable to meet its financial obligations as and when they fall due. In particular, it has been unable to pay its long overdue creditors, who currently stand at Kshs203,959,690.25, out of which current pending bills also stand at Kshs182,678,833. The Ministry is sourcing for funds to complete the Lake Basin Development Authority's headquarters and staff housing complex, and has requested the Ministry of Public Works to enlist the project under \"stalled projects\" and that should be revived and completed under the National Reconstruction Programme. Mr. Deputy Speaker, Sir, concerning the authority's operational mandate, the Ministry has developed a regional development policy, and has revised and redefined the roles and functions of all Regional Development Authorities. The relevant instruments for performing those functions have been entrenched in the proposed Regional Development Act in order to empower the Regional Development Authorities to perform them effectively. Service delivery charters for the Ministry as well as for the six Regional Development Authorities have been developed with a view to informing the public on the quality of services offered by the respective institutions. Collaboration with the private sector has been enhanced through joint public-private partnership forums for joint investment. Restructuring and rationalisation of the Regional Development Authorities is being undertaken to ensure that the institutions are revitalised and become more responsive to the increasing citizenry demands for efficient and effective services. Restructuring is also expected to improve efficiency in utilisation of public resources. A department of regional development services has been created at the Ministry's headquarters to offer the much needed technical back-stopping to issues pertinent to the Regional Development Authorities."
}