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{
    "id": 842496,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/842496/?format=api",
    "text_counter": 114,
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    "content": "Secondly, Mr. Madam Temporary Speaker, we have engaged the Parliamentary Budget Office (PBO) to do what we are calling a fiduciary risk analysis, to look at the commonly recurring issues across the 47 counties and do one report and bring it to this House for debate. I want to ensure Members that for every financial year, we will be presenting at the maximum three reports: one consolidated report for the Executive, the Assembly and one fiduciary risk statement. I think that will be a better use of the time of this House. Madam Temporary Speaker, if I give some broad highlights about the Report for Nakuru County for Financial Year 2013/2014, Nakuru County appeared before the Senate on 26th April 2016, and this report that I am presenting today was adopted on 4th April 2017. A quick highlight of some of the issues that the Committee flagged in Nakuru County are as follows- (1) It was noticed that the national Government was deducting revenues due to the County Government at source. It was explained that 16 per cent or Kshs1.23 billion that had been retained by the national Government was due to recovery of salaries paid to staff performing devolved functions. We know that this is a problem that is still going on in counties and we have seen it with Managed Equipment Scheme where the money does not hit the County Revenue Funds but the national Government deducts that money at source. (2) There was an underperformance of Own Source Revenue (OSR) by 30 per cent and it was explained that this was due to pending bills and the Governor in mitigation noted that they had put in place measures to automate revenue collection. (3) There was also an inadequate allocation to Development Budget and the law requires that; at least 30 per cent of county budgets be allocated to development. In the case of Nakuru County, only 10 per cent of the total revenue was allocated to development. The reasons given by the Governor was underperformance of OSR revenue and also a bloated workforce or a huge wage bill. The Governor indicated that in subsequent years the ratio had improved to 30 per cent. (4) Nakuru County was also fined Kshs.9.023 million due to late remittance of Income Tax. This was really inexcusable and is a problem that cuts across counties and affects the standing of employees with banks, statutory bodies like the Kenya Revenue Authority (KRA), the National Hospital Insurance Fund (NHIF) and also with the Credit Reference Bureau (CRB). (5) During the period under review, Nakuru County had pending bills of Kshs1.284 billion and out of this sum, half of it or Kshs684 million were debts that were inherited from the defunct local authorities. The issue of validation and assessment of assets and liabilities of defunct authorities is an exercise that is ongoing. The Transition 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."
}