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{
    "id": 647285,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/647285/?format=api",
    "text_counter": 197,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "billion. That is what was on the HANSARD. The NBK is not in a financial crisis and it reported a total loss of Kshs1.2 billion and not Kshs120 billion. The second question was whether the Cabinet Secretary is aware that the said unaccounted for funds were secured by the bank’s top managers. The Cabinet Secretary is not aware of any accounted for funds secured by the bank’s top managers. The Cabinet Secretary is however aware that the Central Bank of Kenya(CBK) has commissioned a special audit of the bank and expects that the audit will reveal any irregularities. The third question was: “What steps have been taken, if any, by the Treasury, to secure public funds lost that belong to, among others, the National Social Security Fund (NSSF), the National Hospital Insurance Fund (NHIF), the Retirement Benefits Authority(RBA) and other public institutions that have a stake; not to mention that the bank is wholly Government and quasi -government owned. The Cabinet Secretary is not aware of the funds belonging to NSSF, NHIF, RBA or any other public institution that have been lost in the bank. The Governor of CBK has assured the Cabinet Secretary that the funds deposited with the bank are safe and the Cabinet Secretary, on that basis, has assured the public on the safety of their funds in the bank. Regarding the action taken to investigate and establish individuals responsible for the loss and punish those found culpable, the following actions have been taken: The Board of Directors has sent six of the top managers including the Chief Executive Officer (CEO) on compulsory leave to allow for special audit commissioned by the CBK to establish if there are any irregularities. The affected managers have also reported to the CID and recorded statements. If any of the managers and or any other person in the bank is found to have breached any regulations, appropriate action will be taken against them according to the law. The Senator also wanted to know the role of CBK as a regulator and banker of the Government through the Bank Inspection Department to ensure that the public funds deposited in the bank cannot be misused or misappropriated. The Banking Act, Cap. 488 empowers the CBK to regulate the business of banking in Kenya. Specifically, the Act empowers the bank as follows---- They are all listed and the Senator has the copy. It includes inspection of any banking institution and its agencies including the books of accounts and records. It also includes vetting of officials by carrying out an assessment of the professional and moral suitability of persons managing or controlling such banks. It also includes examination and control of groups by requiring legal and management structure of the banking group. Section 33 involves advising and making recommendations to the institution with regard to the conduct of the business, generally. The sixth question the Senator sought is the role of the National Treasury as the custodian of public funds to ensure that the funds are not misused or misappropriated. Treasury is responsible for the formulation of policy in the banking sector, except monetary policy, which is specifically provided for in the CBK Act, under Article 231 of the Constitution of Kenya. Lastly, the reasons why NBK did not alert National Treasury to avert 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"
}