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{
    "id": 551820,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/551820/?format=api",
    "text_counter": 35,
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    "content": "(1) Further to the Council of Governors’ letter to the Senate vide letter Ref: COG/6/40. vol 4 dated 24th March, 2015, (a copy is enclosed) the Senate was asked to intervene and address the issue of the Ministry of Health transmitting funds directly to health centres at the counties. The Ministry has neglected and refused to sign the Memorandum of Understanding (MoU) on the flow of funds. (2) It has now, and without reference whatsoever to county governments resorted to sending funds directly to dispensaries and health centres without even indicating what the monies are for. This completely undermines the Public Finance Management procedures, authority of the county governments and county treasuries, devolution and funds flow procedures to county facilities and institutions set by law for accountability at county level. Furthermore, the funds are not appropriated by county assemblies nor captured in county budgets. This has created serious accounting and auditing challenges and a dispute is in the making since counties will not be in a position to account for these funds as required by law. (3)The Council is, therefore, concerned, first, that the Ministry has not yet signed the relevant MoU. Instead, it has gone back to a negotiated draft Tripartite Agreement that was revised based on the agreement between the Ministry of Health, the National Treasury, the World Bank, the CoG, the Commission on the Implementation of the Constitution (CIC), the Transition Authority (TA) and the Commission on Revenue Allocation (CRA). Minutes of this meeting have been forwarded to you. (4) Second, the MoU signed by the 47 Governors provides for interim measures that would allow the World Bank funds captured under the Ministry of Health Budget to be sent to county facilities through County Revenue Fund. By not signing this MoU and insisting on sending funds directly to dispensaries and health centres, the Ministry is breaking the law and its actions are in bad faith and meant to continue undermining the county governments’ authority to manage health facilities as per the Constitution. (5) Regarding the Funding Basket, the CoG is not aware of any Basket Funding that has been put in place by the national level funding to county facilities. The CoG is nevertheless aware of the Joint Financing Agreement (JFA) that has been entered between the Danish International Development Agency (DANIDA), the World Bank and the National Treasury representing the Government of Kenya in October, 2010. (The JFA is attached for ease of reference). After devolution, the Government of Kenya funds for operations and maintenance to dispensaries and health centres were devolved. The Danida has also, since August, 2013, left the JFA; entered into an exchange of letters with the National Treasury and counties and send funds directly to facilities under the authorities under the county treasury as per established financial and accountability systems under the Public Finance Management (PFM) Act (exchange of letters is attached for reference). In this regard, the JFA is no longer valid. In addition, the JFA has been overtaken by the provisions of the Constitution and since health is now devolved, this makes the referred JFA repugnant to the provisions of the Constitution. (6) In addition, and as indicated in the MoU, the World Bank credit that provides the funds to county facilities is under the additional financing credit signed in December, 2013, and that comes to an end in December, 2016 thus the CoG is not aware of this The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}