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{
    "id": 858988,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/858988/?format=api",
    "text_counter": 230,
    "type": "speech",
    "speaker_name": "Mvita, ODM",
    "speaker_title": "Hon. Abdullswamad Nassir",
    "speaker": {
        "id": 2433,
        "legal_name": "Abdulswamad Sheriff Nassir",
        "slug": "abdulswamad-sheriff-nassir"
    },
    "content": "monitor and implement projects to avoid unnecessary termination in variation. The Treasury should endeavour to allocate adequate budgetary provision to State corporations that are undertaking mega projects that are solely funded by the Government so that they are able to complete their projects within their scheduled time and thus minimise loss of public funds through payment of avoidable interests. With regard to State corporations NSSF should only pay the amount that was recommend by the state Department of Public Works when it comes to the issue of Hazina Trade Centre. One other thing that we have noted is the quality of audits. At this juncture, I congratulate the Office of the Auditor-General which, despite having serious human resource challenges, has been able to conduct audits. I want Members to understand where our concern is coming from. We are concerned that State corporations that are audited and the audits are done by the office of the Auditor-General have more issues, are more detailed and are of better quality than those State corporations that private auditors audit. I know that despite Section 23 of the Public Audit Act 2015 which allows the Office of the Auditor-General to outsource audit assignments, the Committee has noted a number of issues. For the case of Kenya Power Company, there was a direct indication there were no audit queries, yet that was not the case. It is for that reason that I will indicate what the Committee has been able to do. This applies to a majority of the State corporations in the energy sector which include KETRACO and many others. In the last 19th PIC Report, it was clear that strategic Government State corporations should be audited by the Office of the Auditor-General himself. This Committee, in its recommendation, is insisting that the recommendations of the 19th Report should be taken into consideration. We should also amend the Public Audit Act so that we restrict outsourcing of audit of State corporations taking into consideration the strategic impotence and the turnover. Parliament should adopt regulations that guide the outsourcing of audit exercise of State corporations. The guidelines will give the Auditor-General directions on how to outsource. The National Treasury should allocate adequate resources and this House should approve those resources to be given to the Office of the Auditor-General so that they can employ more staff to efficiently audit all Government entities. In the case which I have been able to talk about of the Kenya Power Company, this Committee has recommended that a special audit be done on a number of issues. One of them was where there was clear fraudulence like the issue of faulty transformer purchase. Secondly, we have given direction to the Office of the Auditor-General to equally give special audit on how the purchase of special tokens was done. We all know Kenyans lost millions collectively. If you are someone who loses a Kshs100 or Kshs200, it goes into billions. We need to know how outsourcing of these token cards was done. One of the other issues that have been going on in most of these State corporations is variation of tender amounts. An example that I have already indicated was the NHIF. This is how sad it is. A sum of Kshs909 million blew up to Kshs3.97 billion noting an increase of 300 plus percentage. What we have indicated in our recommendation is that Chief Executive Officers and managing directors of State corporations should ensure that there is proper planning of projects, and that this is undertaken with credible…"
}