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{
    "id": 560930,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/560930/?format=api",
    "text_counter": 512,
    "type": "speech",
    "speaker_name": "Hon. Keynan",
    "speaker_title": "",
    "speaker": {
        "id": 41,
        "legal_name": "Adan Wehliye Keynan",
        "slug": "adan-keynan"
    },
    "content": "in such an organisation? We have allocated this organization a lot of money, year in year out, but it has not taken off. The reason is that even the management knows that the organisation and its location belong to somebody else. It is time to carry out a national audit of all the pieces of land illegally allocated to some of these individuals and repossess them so that the 40 million taxpayers can benefit from these pieces of land instead of these individuals. The other matter is about ownership. The ownership of some of these corporations is doubtful. On the face of it, an institution like the Kenya Seed Company (KSC) is a national institution. To date, there is no evidence to show who owns the company. Is it owned by private individuals or taxpayers? This is simply because the way the process of privatisation was carried out was dubious. Today, if you go to the Office of the Registrar of Companies nobody will tell you that so and so is the rightful owner of KSC and it is because of this that the Auditor-General has raised a number of issues. I want to go into specific issues. On imprest, an institution like the National Water Conservation and Pipeline Corporation (NWCPC) has been notorious in the issuance of imprest that has not been accounted for. We still have millions of shillings belonging to that organization in the form of imprest that is still outstanding. The other organisation that has been notorious in this regard is Coast Development Authority (CDA). They have millions of shillings in unaccounted for imprest. The other organisation is the Kenya Medical Research Institute (KEMRI) which also has thousands of shillings in undeclared imprest. On the issue of unqualified accounts, the Committee observed that some organisations which had audit queries for the previous years are the Kenya Roads Board (KRB), the Nursing Council of Kenya (NCK), the Kenya Industrial Research Development Institute (KIRDI), the Kenya Electricity Transmission Company (KETRACO) and the Local Authority Provident Fund (LAP Fund). The LAP Fund is a mysterious organisation. Though created through a statute law passed by this House, if not checked, that organisation is going to create a very serious institutional challenge between the national Government and the county governments. We promised, as Members of the PIC, that very soon we will be bringing an update report on the functions, mandate, activities and investments of this creature called “LAP Fund”. To date, it is one of the organisations that have operated without an effective and properly constituted board and other institutional mechanisms. Hon. Temporary Deputy Speaker, outsourcing of audit services is another issue I would like to talk about because it has become generic and has been abused. Auditing is a noble profession. However, the bottom-line is profit-making and business. We have asked the Auditor- General to bring to an end the practice where an organisation, which is 100 per cent owned by taxpayers is audited by private auditors, and year in year out, they bring clean books after investing not billions but trillions of shillings. Some of the notorious institutions in that engage in this practice are the Geothermal Development Company (GDC), the Kenya Power Company (KPC), the Kenya Electricity Generating Company (KenGen), the Central Bank of Kenya (CBK), the Kenya Revenue Authority (KRA) and the National Bank of Kenya (NBK). It is no wonder they have serious challenges. Hon. Temporary Deputy Speaker, these institutions must be brought under the ambit of the National Audit Office. We can no longer trust private auditors to audit these institutions and bring clean books year in, year out. Let us look at it this way. As an entity, if we advertise for the The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}