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"id": 221586,
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"speaker_name": "Mr. Muturi",
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"legal_name": "Justin Bedan Njoka Muturi",
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"content": "Thank you, Mr. Speaker, Sir. We did not intend to take the traditional period taken moving. As I began moving this Motion on the adoption of the Fourteenth Report of the Public Investments Committee (PIC) on the accounts of State Corporations yesterday, I did indicate the membership of the Committee and it is important that I point out that the Committee held--- Of course, for the first time, we also began complying with the Standing Orders. We held a total of 55 sittings at which we closely examined the audited accounts and reports from the Controller and Auditor-General on the affairs of 16 State Corporations and Reports thereon. In the process, the Committee did undertake inspection tours, such as to the National Water Conservation and Pipeline Corporation (NWCPC) at the Coast Province within the area of Shanzu, Changamwe and Nyali wells. These inspection tours were prompted by claims of land grabbing within the facilities of the corporation. The Committee also did make site inspection visits within Kinangop and Naivasha areas while examining the Report of the Controller and Auditor-General in the affairs of the Kenya Roads Board (KRB) with regard to claims that certain roads in those areas which had been shown to have been recarpeted had only been graded. The reports--- The proceedings of such visits are recorded in the minutes of the Committee which are contained in this Report, and annexes to this Report can be found in the Parliament's Library. The implementation status of the Thirteenth Report is printed separately as a Treasury Memorandum, which will be discussed together with this Report and is attached hereto as Volume II. In its inquiry into whether or not the affairs of the public investments were managed in accordance with sound business principles and prudent commercial practises, the Committee heard both oral and written evidence, primarily from the chief executives of various State Corporations against the background of audit reservations by the Controller and Auditor-General as well as written representations by other relevant witnesses on a case-by-case basis. The recommendations on the issues raised by the Controller and Auditor-General would be found under appropriate paragraphs of this Report and the records of evidence adduced, documents and notes received by the Committee form the basis of the Committee's observations and recommendations as outlined in the Report, and can be obtained from the HANSARD Reports of the Committee available, again, in the Parliament's Library. Those observations and recommendations, we believe, if taken into May 16, 2007 PARLIAMENTARY DEBATES 1399 account together and implemented, will, in our view, invariably enhance accountability, effectiveness, transparency, efficiency, prudent management and profitability in State Corporations and the public investment sector as a whole. Mr. Speaker, Sir, in our observations, the Committee was appalled to observe that several State Corporations continued to operate under financial constraints, most of which are occasioned by mismanagement and imprudent commercial arrangements. In addition, as it had been observed in previous Reports, the Committee noted that some parent Ministries constantly engaged in micro- managing State Corporations under their helm and severally undermined the decisions made by Boards of such Corporations, even where such boards are, indeed, carrying out statutory duties as provided for in the establishing statutes. The Committee was concerned that this tendency dilutes the principles which are underpinned in the establishment of State Corporations as well as the much hyped about performance contracting concepts. Mr. Speaker, Sir, in this regard, Mr. Speaker, Sir, one case stands out as an example. One chief executive, and it is unfortunate that the concerned Minister is out to--- He has just walked out! One particular State corporation which has been rated to have performed very well, and whose Board had recommended that its Chief Executive Officer's (CEO's) contract be renewed, was mysteriously short-changed, arm-twisted and to very many people's surprise, the CEO, who had been one of the resource people in those performance contracting exercises, himself was shown the door. This is none other than the Kenya Ports Authority (KPA). The immediate former CEO, one Brown Ondego had been rated as one of the best performing Chief Executives. The Board of Directors of the KPA management recommended that, that CEO should have had his contract renewed. However, as happens usually during times when there is heightened political tension in the country, some people began making claims that the post of the CEO must go to the Coastal region. As a result, that particular CEO was shown the door. Mr. Speaker Sir, that kind of behaviour by parent Ministries, obviously, stifles performance. Even in as much as we talk about performance contracting because why would you want to put a CEO under a performance contract if you do not intend to honour what he does? Even if he produces, you do not recognise that. Of what use is it engaging people all over; the CEOs, university professors in public universities, in signing performance contracts which you have no intentions of honouring. If it becomes politically expedient so to do, the man or woman will be shown the door without reference to any of the terms under which he or she is contracted. I think, this House should express its displeasure with that kind of behaviour by parent Ministries. Furthermore, the Committee has continually taken great exception on the slow pace at which the Government has implemented the recommendations of this House arising from previous Reports. In that regard, the Committee abhorred the apparent lacklustre approach employed by the Office of the Attorney-General and that of the Director of Criminal Investigations Department (CID) as well as the police force in general, in the implementation of the recommendations of this House, particularly, where the Committee recommends that further investigations and/or possible prosecution be undertaken. The Offices of the Attorney-General and the CID merely goes to sleep. Mr. Speaker, Sir, within the Introduction, we have put a number of instances. For instance, with regard to the Kenya National Trading Corporation (KNTC) in their audited accounts for the year 1996/97, it had been noted by the Controller and Auditor-General, irregular transfer of the corporation's land to some people known as M/s Manga Mugwe and Rubshell Company. The recommendation which was adopted by this House was that investigations and possible prosecutions be undertaken. To date, nothing has happened. The Attorney-General has never brought a report that says that they have investigated and found nothing worth pursuing. He just keeps quiet!"
}