5 Dec 2019 in Senate:
Our discussion with the county governments yesterday was on what the outstanding bill is currently; what they have paid so far; and how they want to pay the others. In fact, from the discussions we had yesterday, we found that significant progress is being made. From the submissions of the national Treasury, the CoB and the affected counties, the Committee made several observations as indicated below. (1) That pursuant to Article 225(1) of the Constitution and Section 96(1) of the Public Finance Management (PFM) Act 2012, the CS was within its powers stop the transfer of funds to county governments ...
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5 Dec 2019 in Senate:
(f) The PFM Act 2012 be amended to ensure payments are made on time by introducing a prompt pay system, where if a valid invoice is not paid within a certain time, it automatically attracts interest. Of course, the Committee will be glad to initiate these recommendations we have made on amendments. Mr. Speaker, Sir, it is imperative to note that Article 221(5)(b) of the Constitution provides that the decision to stop the transfer of funds may be enforced immediately, but will lapse retrospectively unless, within thirty days after the date of the decision, Parliament approves it by resolution passed ...
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5 Dec 2019 in Senate:
Mr. Speaker, Sir, I wish to thank the Members that have contributed. This is a very serious matter. We do agree with the Auditor-General’s Report and the Acting CS but we have said that progress that we made is not the end of this matter but in the circumstances we are, in fact, the Committee recommends that we disapprove the stoppage for now but people should read the recommendations in the Report. It is not the end and I do get the sentiments of my colleague from Homa Bay. However, with those few remarks I beg to move.
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27 Nov 2019 in Senate:
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 ...
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27 Nov 2019 in Senate:
Mr. Deputy Speaker, Sir, Clauses 4 to 7 set out the procedure for the stoppage of funds in the following terms- “A decision to stop the transfer of funds under clause (3) may not stop the transfer of more than fifty per cent of funds due to a county government.” The contention was whether the CS complied with the Constitution and the provision of law. In our opinion, the CS has complied with the provision of law because he has raised the intention to stop the funds by 1st of December, and has subsequently applied to both Houses of Parliament, ...
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27 Nov 2019 in Senate:
We have established that under provision of law, the Controller of Budget is required to investigate the matter and submit a report to Parliament, in accordance with
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27 Nov 2019 in Senate:
The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate.
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27 Nov 2019 in Senate:
Article 225(7) of the Constitution, within14 days of the decision, to stop the transfer. The decision was made on 19th November, 2019. Therefore, by 3rd December, 2019, the Controller of Budget is supposed to bring a report to Parliament. Mr. Deputy Speaker, Sir, Parliament is required, by a resolution of the two Houses, to either approve or reject the decision of the CS. As the decision to stop the transfer of funds is dated 19th November, 2019, Parliament is required to make a decision on or before 18th December, 2019. The approval by Parliament is predicated both on a consideration ...
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27 Nov 2019 in Senate:
Thank you for the question, Mr. Deputy Speaker, Sir. Article 225(7) of the Constitution states as follows:- “Parliament may not approve or renew a decision to stop the transfer of funds unless– (a) the Controller of Budget has presented a report on the matter to Parliament; and (b) the public entity has been given an opportunity to answer the allegations against it, and to state its case, before the relevant parliamentary committee.” That is the provision of Article 225(7) which binds us.
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27 Nov 2019 in Senate:
That is why I intend to have a meeting on Tuesday next week to look at these critical issues of timelines.
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