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{
"id": 963841,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/963841/?format=api",
"text_counter": 138,
"type": "speech",
"speaker_name": "Sen. (Eng.) Mahamud",
"speaker_title": "",
"speaker": {
"id": 373,
"legal_name": "Mohammed Maalim Mahamud",
"slug": "mohammed-mahamud"
},
"content": "Mr. Deputy Speaker Sir, I rise, pursuant to Senate Standing Order No.51(1)(a) to make a Statement concerning the stoppage of funds to county governments due to failure to pay pending bills. On Thursday 21st November, 2019, a question was raised on the floor of this House as to the purported stoppage of transfer of funds to county governments by the CS for the National Treasury and Planning. The Speaker directed that the Committee on Finance and Budget meet with the CS on Tuesday 26th November, 2019, and present a report to this House on the issue of pending Bills. Mr Deputy Speaker, Sir, the Committee held a meeting with the CS for the National Treasury and Planning, and the following information was presented- (a) That vide National Treasury Circular No.20/2019 Ref:IGFR/Pending Bills/01/A(24), the CS for the National Treasury and Planning informed the governors of the county governments of Narok, Machakos, Nairobi, Vihiga, Isiolo, Tana River, Migori, Trans Nzoia, Bomet, Kirinyaga, Nandi, Mombasa, Kiambu, Garissa and Baringo of the decision to invoke section 97 of the Public Finance Management Act, 2012, to stop transfer of equitable share of revenue for financial year 2019/2020 with effect from 1st December, 2019, as no effort had been made by these counties to clear eligible pending bills between 1st July, 2019, and end of October, 2019; (b) that additionally, the CS indicated that no conditional grants would be released to the aforementioned county governments for the Financial Year 2019/2020 until and unless amicable settlement of the matter is arrived at; (c) that vide a letter dated 25th November, 2019, the CS had forwarded the aforementioned circular to both Houses of Parliament for approval as required under section 97(2) of the Public Finance Management Act, 2012. Mr. Deputy Speaker, Sir, under Article 225(3) of the Constitution the CS responsible for finance may be authorized by statute to stop the transfer of funds to a State organ or any other public entity— (a) only for a serious material breach or persistent material breaches of the measures established under that legislation; and, (b) subject to the requirements of clauses (4) to (7)."
}