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"id": 196304,
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"speaker_name": "Mr. Ethuro",
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"legal_name": "Ekwee David Ethuro",
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"content": "I think it is important to mention that so that hon. Members can understand why I am here. However, I want to pay special tribute to those hon. Members for a job well done. The commitment that they had, even during the time when hon. Members were usually on recess or doing other business--- That particular Committee had the desire to ensure that the reports of the Controller and Auditor-General were brought up to date, to a period of about one or two years. Therefore, in 2003 we decided to tackle two reports per every year. That was a dramatic departure from the previous years. I think the future Members of that Committee need to borrow from that and continue implementing that initiative, so that the House will be discussing matters that are relevant, topical and the memory will not have been lost. Mr. Deputy Speaker, Sir, in considering the Report of the Controller and Auditor-General, we were guided by the Standing Orders of this House. But because we have a new House, it does no harm to make specific reference to the Standing Orders that have given us the mandate to do that business on behalf of the House. That is found on Standing Order No.147. That is where PAC, as one of those old institutions of democracy to play the role of oversight on behalf of the people, has discharged its responsibilities. One of the important oversight functions of Parliament through the PAC is, therefore, a key control on the deviations of the Executive. The Committee's workload was quite heavy, as I said earlier. It is, therefore, important to recognise that, that particular Committee, which commenced its work on 2nd September, 2004, held 83 sittings. The Committee noted that most of the queries contained in the 1999/2000 Report were also part of the report in 2000/2001. Similarly, most of those queries, and this should worry and concern hon. Members, contained in the 2000/2001 Report were also part of the report of 2001/2002. It, therefore, means that all the work that the Committees do, and this particular Committee on behalf of the House, the Executive does not respond to it either deliberately, or just by sheer lack of interest in governance. The Committee also decided that it was not going to rely on the Controller and Auditor- General's reports only. They took specific opportunities. Every three months or so, we would conduct a local tour just to satisfy ourselves on what had been stated in the reports. We visited Moi-Chepterit Road and the Ministry of Roads and Public Works office building in Eldoret Town. We also went to Elgeyo Saw Mills and the Kericho-Chemosit Road. The observations and recommendations of the Committee on the areas visited are contained in the specific audit queries. All the recommendations made by the Committee were arrived at by consensus and after very April 22, 2008 PARLIAMENTARY DEBATES 557 thorough objective and constructive deliberations. Mr. Deputy Speaker, Sir, there was careful scrutiny of evidence adduced before the Committee, submissions that were received, as well as the information that we received during the inspection tours. The Committee, therefore, urges the House to adopt these recommendations. It also requests the Government to implement them without fear or favour. We are talking of the Coalition Cabinet and Government. I hope the grand idea will be reflected in the implementation of these recommendations. Mr. Deputy Speaker, Sir, transparency and accountability should be encouraged in all Government Ministries and institutions in order to ensure that corruption is eradicated forever in this country. When corruption ceases to exist in Government institutions, it will be easy to root it out in the private institutions. The Committee noted that if the Accounting Officers adhered to the laid-down financial regulations and procedures by the Government, then most of these queries would not have risen, in the first place. Mr. Deputy Speaker, Sir, this Committee also, in its endeavour to have a regional outlook, and in pursuit of the East African common objectives, affiliated ourselves and we are the very founder members of the Eastern Africa Association of Public Accounts Committees (EAAPACs). Allow me, therefore, to use this opportunity to make a brief description of the history and the background of the EAAPACs. The formation of this organisation was identified at a workshop we held in Mombasa between 20th and 22nd February, 2004. It was noted that there is need to network with a view to sharing these practices where appropriate and harmonising and standardising the work of the Public Accounts Committees (PACs) in the region. A need, therefore, to establishing an organisation that will guarantee and ensure that the PAC members are empowered to effectively carry out their functions and oversight role over public sector finances and promote accountability and good governance became extremely paramount. It was from this background that the EAAPACs was formed. Mr. Deputy Speaker, Sir, the main objectives of the organisations are as follows: (i) To improve the capacity of the individual members of the PAC to function more effectively. (ii) To improve the effectiveness of the PACs in the East African region. (iii) To share these practices and innovations, and where appropriate harmonise and standardise the work of PACs in the East African region. We realised that we cannot work in isolation. There is need for us, as a region, to learn from each other. (iv) To promote accountability, transparency and good governance. (v) To conduct research on the needs, practices and innovations in order to improve and enhance the effectiveness of the PACs in the region. (vi) To communicate and do relationships with individuals and organisations with relevant expertise, both nationally and internationally. (vii) To empower the members of the association to be able to disseminate the information on the work and activities of the PAC, among elected representatives in the media and the general public. (viii) To strengthen the relationship with the appropriate East African Community (EAC) structures and those of other neighbouring countries. Mr. Deputy Speaker, Sir, according to the EAAPACs constitution, membership is open to all members of the PACs in the region. It includes the Parliaments of Tanzania, Uganda, Rwanda, Burundi, Ethiopia, Eritrea, Somalia, Djibouti, Sudan and Kenya. Included also in the list is the East African Legislative Assembly (EALA). The regional body of the PAC is also affiliated to similar organisations such as the Association of Public Accounts Committees of South Africa and Southern Africa Development Organisation of Public Accounts Committees, amongst others. Mr. Deputy Speaker, Sir, this regional body was able to hold its first Annual General Meeting (AGM) and conference in Dar es Salaam in July, 2005. It was resolved that subsequent 558 PARLIAMENTARY DEBATES April 22, 2008 conferences shall be held in member countries on a rotational basis. A second AGM and conference was held in Nairobi in July, 2007, and resolved to hold the next one in Kampala, Uganda, in April this year. I am informed that the plans for this conference are at an advanced stage. Mr. Deputy Speaker, Sir, on the executive committee of this organisation, the current committee comprises the PAC Chairpersons of the member countries. The said committee has a chairperson presently held by a Ugandan and a deputy chairperson by a Tanzanian and a treasurer by Rwanda. The secretary-general is hosted by Kenya and a deputy secretary-general is held in Burundi. Mr. Deputy Speaker, Sir, before I turn to the specific observations in the Reports, I wish to recognise the support we got from the Clerk of the National Assembly and the staff led by Mrs Munga and Mr. Ariwomoi. Our work would not have been possible if it was not for the dedication of efficient officers of Parliament, who spent hours and hours looking at the reports, raising the issues that are important and thus becoming a living institutional memory for those members who were not previously in the Committee. With their guidance and technical support, we were able to bring to the House a Report that we think will be extremely useful to the House. Mr. Deputy Speaker, Sir, we also wish to record our appreciation for the services rendered by the officers of the Controller and Auditor-General. These officers have remained independent throughout the history of this country, even at times when our political system was compromised. It is gratifying to note that some professional Kenyans always held the moral authority to be able to make specific recommendations on the public accounts. I think this House owes them very serious and grateful thanks in terms of discharging our constitutional obligations as Members of Parliament. Mr. Deputy Speaker, Sir, I will now make specific observations as per the Reports. The first one which was of a major concern to the Committee is on expenditure control. The Committee noted with a lot of regret that during the financial year 2000/2001, I hope my good friend, the hon. Minister for Finance is paying serious attention with little distraction from the Minister for Medical Services - the excess expenditure incurred without authority of Parliament amounted to Kshs364,740,140, compared to Kshs184,321,534 that was incurred in the previous year of 1999/2000. It should concern both the Minister and this House that excess expenditure incurred without authority of Parliament literally doubled. The Committee was also concerned that the financial officers continued to overspend in total disregard of the laid-down financial regulations and without seeking parliamentary approval, and yet no action was taken against them by the responsible Accounting Officers who are usually the Permanent Secretaries, and in particular the Permanent Secretary for Finance. He is mandated by law to discipline them for such shortcomings. I want to believe that the new spirit of good governance and reform will ensure that, in future, any such public officer who spends money without parliamentary authority, or without following the laid- down financial regulations and procedures of Government should not act with impunity. That is the only way we can make sure that this excess does not continue doubling or maybe tripling. Mr. Deputy Speaker, Sir, the Committee, therefore, made specific recommendations to the Permanent Secretary for Finance that he must liaise with the Attorney-General and the Head of Public Service and Secretary to the Cabinet in order to formulate regulations which will ensure that no Accounting Officer spends more than what has been allocated in the Budget without seeking the requisite parliamentary approval.The Permanent Secretary, Finance, must therefore, ensure that Parliament approves the Excess Votes, after they have been brought to the House. Mr. Deputy Speaker, Sir, the second general observation that the Committee made, and which it felt important to be introduced at this particular time, has to do with road construction and maintenance. You will agree with me that the findings of the Committee are still very relevant because, a few minutes ago, we were discussing issues to do with roads. The Committee noted April 22, 2008 PARLIAMENTARY DEBATES 559 with concern that some roads took too long to be completed because of termination of appointments and contracts due to lack of performance and inadequate funding. During the construction of the Kisii-Chemosit Road in particular, the contract was initially awarded to Solel Boneh International Limited in 1986 for a tender sum of Kshs146,492,302. However, the contract was terminated two years later in 1988, due to non-performance by the contractor who had only done six kilometres within two years. A second contract was awarded to Zakhem International Construction Company in 1988. However, the contractor suspended the work in 1992 citing non-payment. These are all actions by public officers. A new contract was awarded to the same contractor after renegotiations in January 1997. You can do simple arithmetic there; from 1986 to 1988 that is a difference of two years. From 1988 to 1992, are six years and 1992 to 1997, another five years. That sounds like simple arithmetic studied in primary school where you establish a pattern to get the next number. These were negotiated in January 1997 for a sum of Kshs557,931,780.36. From the initial sum, of 1996, of Kshs146 million, we are now renegotiating for the same road at Kshs557 million. I think, that was enough. The contract was terminated in June 1997, barely five months after the contract was signed because the contractor failed to perform. However, he moved to court and was paid Kshs178,426,042.51. He was paid for work not done. The Minister for Finance will always be coming back to ask us for more money when we are losing money for a job not done. That is not the end of the story. A third contract was awarded to HZ and Company in July 1997, one month after the other one was terminated, at a sum of Kshs798,804,445. The contractor, believe me, is like a fairy tale. He suspended the work in June 1998 citing non-payment and the contract was terminated in the year 2000. Mr. Deputy Speaker, Sir, I am wondering whether the House is following this. Nobody is showing any signs of disapproval."
}