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"content": "Mr. Temporary Deputy Speaker, Sir, the ninth recommendation is on outdated Act, The Kenya Post Office Savings Bank Act. This is found on pages 64 to 66 of the Report. The Committee was informed that the losses incurred by the Kenya Post Office Savings Bank were as a result of inefficient management and poor investment strategies in spite of the fact that we have a whole Investments Secretary at the Treasury. Mr. Temporary Deputy Speaker, Sir, the investments were mainly in the following financial institutions, which were under receivership: Continental Bank Limited, Kshs23,372,642; Continental Credit Limited, Kshs9 million; Home Loans Limited, Kshs34 million; Pioneer Building Society Limited, Kshs38 million; and Rural Urban Credit Limited, Kshs1,486,065.60. For those under receivership, this amounts to Kshs106,224,531. Mr. Temporary Deputy Speaker, Sir, the Bank also lost some money through other banks that were under liquidation. These were Trade Bank, Kshs51,900,000; Middle Africa Finance 564 PARLIAMENTARY DEBATES April 22, 2008 Limited, Kshs856,373; Allied Credit Limited, Kshs9 million; International Finance Limited, Kshs7,773,479; Inter-Africa Credit Limited, Kshs8,500,000; Prudential Bank Limited, Kshs423,253,000 and Trust Bank Limited, Kshs167,576,478; a sub-total of Kshs294,122,708.90. The sum total of both comes to Kshs400,347,239.90. Mr. Temporary Deputy Speaker, Sir, the Committee was greatly concerned that the Kenya Post Office Savings Bank (KPOSB) still operated under an outdated Act, which made its debt an unnecessary burden to the taxpayer. The Committee was further concerned that no action had been taken against the manager who had mismanaged the bank for a long time, to the extent that they had accumulated those kinds of losses. The Committee reiterated its earlier recommendation under Paragraphs 172 to 174 of the year 1999/2000, that the Director of the Kenya Anti-Corruption Commission (KACC) should investigate the circumstances that led to the accumulated loses with a view to holding responsible and prosecuting those persons involved in the mismanagement of the KPOSB. The Committee further reiterated its earlier recommendations - in fact, as far back as the accounts of 1996/1997, 1997/1998 and 1999/2000 - that the Accounting Officer should liaise with the Attorney-General in order to present a Bill to Parliament which will amend such an outdated Act soonest. To date, and even in this year's Budget, the Treasury continues to provide funds in obligation to that outdated Act. We are asking that the Treasury should not be under such an obligation when the loans are mismanaged under such circumstances. Mr. Temporary Deputy Speaker, Sir, the tenth example is on fund accounts, and that is the responsibility of the Minister for Finance. The Committee noted with great concern that despite its previous numerous recommendations on winding up of either fund accounts, such as the Rural Enterprise Fund, the Kenya Local Loan Support Fund, a shady Widows and Orphans Pension Fund - it is still in our books - the Treasury continues to ignore such recommendations and continues with the accounts, thus opening possible avenues for misappropriation. The Committee recommended that all Accounting Officers must ensure that the funds are wound up without further delay. Mr. Temporary Deputy Speaker, Sir, as I submitted earlier, the Public Accounts Committee (PAC) is one of those important Committees of this House. That is because it looks carefully at the recommendations of the Controller and Auditor-General. Even before those recommendations are noted by the Controller and Auditor-General in his Report, responsible officers are usually given adequate opportunity to explain, to make representations and when they fail to do so, is when the Controller and Auditor-General publishes the Report. The House still affords them an opportunity, through looking at those reports of the Controller and Auditor-General, and calls the relevant Accounting Officer with a view to either finding out whether he or she has recovered something in terms of money lost, or some provisions if there is a legal lacuna that the officers are taking advantage of and, finally, end up with what we call the \"Big Five\"! That is the Attorney-General himself, the Head of Public Service, the Controller and Auditor-General himself, and the Permanent Secretary for Finance. So, we want to make sure that in all those things, nothing is being reported that has not been verified, audited or considered carefully. So, by the time the Report comes before the House, it is a grave matter! Mr. Temporary Deputy Speaker, Sir, if this country is going to take its institutions very seriously; if this nation is going to make Parliament play its role in the national agenda, it is extremely important that the relevant Ministries, especially the Treasury, when it is responding to its memoranda, will be able to deal with the specific recommendations by the Speaker, with a sense of duty and a commitment, and with a desire to ensure that you can account for each and every penny that the Kenyan people are giving to the Government for the sake of its development; and for the sake of paying its officers in order to do a good job. Mr. Temporary Deputy Speaker, Sir, the Treasury should not be shy. This House should April 22, 2008 PARLIAMENTARY DEBATES 565 take its obligations seriously. Any public officer who does not perform to the expectations of the public must be discharged from the Public Service. Mr. Temporary Deputy Speaker, Sir, I wish to conclude by, once again, thanking your office and the Clerk's office for the stewardship and support that they gave to the Committee. Finally, I want to remember the Members of that Committee who could not make it back to the House. Wherever they are, let them be out there knowing that they rendered very effective service to this Parliament and to this country. With those few remarks, Mr. Temporary Deputy Speaker, Sir, I beg to move, and request my good friend, the Member for Isiolo South, hon. Abdul Bahari, to second this Motion."
}