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"id": 253611,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/253611/?format=api",
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"type": "speech",
"speaker_name": "Mr. Kimunya",
"speaker_title": "The Minister for Finance",
"speaker": {
"id": 174,
"legal_name": "Amos Muhinga Kimunya",
"slug": "amos-kimunya"
},
"content": " Thank you, Mr. Deputy Speaker, Sir. I think that the other observations that have been made generally contain allegations that the Treasury abdicated its responsibilities. It has been stated in the Report that the Treasury failed to detect anomalies. In fact, it has been stated that there exists discontentment between Treasury, Central Bank of Kenya (CBK) and procuring Ministries over the manner of making payments. So many other things have been said in this Report. 502 PARLIAMENTARY DEBATES April 18, 2006 Hon. Okemo and others explained very clearly in their submissions what the role of Treasury was in such circumstances. The secret nature of those contracts meant that the Treasury had no way of knowing what was happening although they were made to bypass the normal procedures. However, the important thing that I would like to bring to the attention of this House, and which was alluded to by hon. Mwiraria, is that we now have, in place, the procedures to stop our taxpayers' money from disappearing under the guise of security. I share the view raised by hon. Mwiraria that the Anglo Leasing and Finance Company saga was a blessing in disguise for this country. Mr. Deputy Speaker, Sir, we now know that all security-related contracts will undergo the normal budgetary processes. Security contracts will be subjected to the Public Procurement and Disposal Act that we passed in this House. These are the facts that we need to look at instead of highlighting only the negative aspects. In terms of stoppage of the payments, Treasury stopped further payments to save the taxpayers' money from disappearing. Some of that money had disappeared even before we got into Government. However, on discovering that there was something unclear about those contracts, Treasury decided to stop payment. Instead of us being congratulated for having stopped the haemorrhage, Treasury has since then been vilified that it did not stop everything. Never before have payments been stopped before people have gone to court and cases delayed many times. We saved Kshs1 billion and all the promissory notes were cancelled. I know arguments have been advanced on the Floor of this House that, perhaps, the promissory notes out there will be discounted. I want to give comfort to this House that the process that we have put in place will not allow any promissory note that is out there with anyone to be honoured. As Treasury, we are the ones to give the final say whether a promissory note is valid for payment or not. The ones that were returned have been cancelled. As regards the ones that are out there, we have made sure that they will not be presented simply because we will not honour them. Mr. Deputy Speaker, Sir, I will reserve my comments with regard to the nature of this Report. I wish not to touch on the issues that are contained in a report that I will be laying on the Table of this House. It is, however, important to note that we are committed, as a Government, to the fight against corruption. At the Treasury, we have been accused in this very House of being very high-handed and interfering with other Ministries by questioning what they are doing. What I am hearing is the opposite in this House. I hope that, as we move on, we will not be accused of stifling efforts of other Ministries. With regard to the refunds, it is true that in respect of four contracts, a refund worth Kshs1 billion was made. I wish to confirm that because it seemed to have created a different impression. It is also true that payments were being made and for each of the contracts, we can avail information with regard to the specific nature of each contract. I believe that, that information was given to the Public Accounts Committee (PAC). Mr. Deputy Speaker, Sir, lastly, we sat in the Cabinet Sub- Committee on Anti-Corruption with my fellow Ministers including Prof. Anyang'-Nyong'o, Messrs. Raila Odinga, Kiraitu Murungi---"
}