16 Oct 2018 in National Assembly:
So, the SFAC is a Select Committee which was established pursuant to the National Assembly Standing Order No.205A. It is one of the three watchdog Committees of this House, the other two being the Public Accounts Committee (PAC) and the Public Investments Committee (PAC). I want to be very brief on some of these points and cut some of the issues. At a broader level, the Committee principally relied on the following laws to come up with this Report... Let me go on record to mention that this Report is comprised of 51 audited accounts. Nairobi City County has 17 ...
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16 Oct 2018 in National Assembly:
personally liable for any loss of public funds entrusted to him. In the course of our work, where we found that a certain Fund Account Manager worked in a certain constituency in 2013, for example, the Report touches on that particular financial year. Even if he moved to another constituency, he or she was forced to appear before the Committee because he was the accounting officer in the year under review. Even if some of them were moved to other destinations, they were called back by the board to answer to the audit queries because they were the accounting officers ...
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16 Oct 2018 in National Assembly:
that, an accounting officer for a national Government entity, the Parliamentary Service Commission (PSC) and the Judiciary shall be accountable to the National Assembly for ensuring that the resources of the respective entity for which he or she is the accounting officer are used in a way that is lawful, authorised, effective, efficient, economical and transparent. The above legal provisions as read together with others not expressly cited obligated the Fund Account Managers to appear before the Committee. Section 12(3) of the National Government Constituencies Development Fund (NG-CDF) Act No. 30 of 2015 provides that the Fund Account Manager shall ...
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16 Oct 2018 in National Assembly:
There are key critical issues we came up with and we also received during our deliberations. Some of the key areas of concern which was of interest to the Members include: Late disbursement of funds: The Committee observed that some projects which had been budgeted and approved by the NG-CDF Board were not implemented during the financial years, due to late disbursement of funds by the National Treasury. With funds being released in the second and third quarters, this greatly compromised efficiency in procurement of goods and services, leading to under absorption of funds. After every financial year, the Auditor-General ...
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16 Oct 2018 in National Assembly:
The Committee on this matter recommends that the Fund Account Managers must strictly comply with the provisions of the Public Audit Act No. 34 of 2015; the NG-CDF Board issues an administrative circular that directs Fund Account Managers to comply with the provisions of the Constitution of Kenya 2010, the Public Audit Act No. 34 of 2015, the Public Finance Management Act No. 18 of 2012 and the Public Procurement and Asset Disposal Act No. 33 of 2015. The Fund Account Manager maintains the original PMC files at the NG-CDF constituency office and the duplicate can be maintained by the ...
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16 Oct 2018 in National Assembly:
Regulation 54 of the Public Finance Management (National Government) Regulations, 2015 also provides that: “Except as provided for in the Act and these regulations, an accounting officer of an entity may not authorise payment to be made out of funds earmarked for a specific activity for purposes other than those activities.” Further, the Committee observed that some projects initiated by CDF committees prior to the enactment of NG-CDF Act, 2015 and which are now categorised as devolved functions remain stalled to date. The reason is that NG-CDF was supporting devolved functions such as provision of dispensaries and construction of roads ...
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16 Oct 2018 in National Assembly:
The NG-CDF Board had not put to level information communication technology in management of projects. Therefore, the Committee recommends that the NG-CDF Board takes administrative action against anybody who contravenes the Act and the fund managers should ensure compliance with Section 6(2) of the NG-CDF Act 2015. The NG-CDF Board should publish the list of all incomplete projects. I earlier on mentioned that there are some projects out there in constituencies which are yet to be completed and now they have been devolved. Also, the county governments are very reluctant to allocate money to complete these projects. We have, therefore, ...
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16 Oct 2018 in National Assembly:
The Board, in consultation with the National Treasury and Ministry of Planning and other relevant authorities should expedite completion of all incomplete or stalled projects. The NG-CDF Board should adopt and implement electronic monitoring and evaluation systems and tools to monitor all projects in the constituencies and have them linked to the electronic national Government monitoring and evaluation system. That is not a big thing to do. The board should have an electronic system that can synchronise all the projects across the country from wherever they are. Once they are complete, the system will be indicating that a project is ...
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16 Oct 2018 in National Assembly:
Another cross-cutting issue that we identified as the Committee is failure to surrender imprest. The Committee observed that recovery of outstanding imprest was low and that some imprest remained outstanding since 2015/2016, which is in contravention of Regulation 94 of the Public Finance Management Regulation Act, 2015. The Committee recommends that the NG-CDF Board recovers all outstanding imprest from defaulting officers with interest at the prevailing Central Bank of Kenya (CBK) rate as provided for under Article 226(5) of the Constitution of Kenya 2010. The electronic version of the Official Hansard Report is for information purposes only. Acertified version of ...
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16 Oct 2018 in National Assembly:
Another cross-cutting issue is stated in part (g). It is on transfer of assets and liabilities following the splitting of constituencies. The Committee noted that constituencies were facing challenges relating to the transfer of assets and liabilities occasioned by the delimiting of constituency boundaries. The Committee further observed that following the split of constituencies Fund Account Managers opened new accounts with nil balances for audit, despite a directive issued by the board requiring that financial transactions for new accounts be conducted through the old constituency accounts. Actually, Nairobi County is the leading county in Kenya with many new constituencies. For ...
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