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Parastatals ordered to submit financial records for scrutiny

National Treasury PS Kamau Thugge. FILE PHOTO | NMG
National Treasury PS Kamau Thugge. FILE PHOTO | NMG 

The Treasury has handed State corporations a two-week deadline to submit records detailing funding and investment from the government for scrutiny by Parliament.

Treasury principal secretary Kamau Thugge said the records would include the corporations’ income, government grants, total assets, liabilities, profits or losses and internally generated funds.

The State agencies are further required to provide the names and equity of shareholders, invested funds and the latest copy of audited accounts in addition to a list of projects initiated or completed over the last three years.

“The cabinet secretary National Treasury is required under section 89 of the Public Finance Management Act, 2012 to prepare and submit to the National Assembly, not later than four months after the end of each financial year, a consolidated report of national government involvement and investment in, or funding of, all state corporations and government-linked corporations for that financial year,” the PS said in a September 13 circular to CEOs of State corporations.

The Act grants the Treasury powers to stop funding to state corporations that are in constant breach of their financial obligations and commitment.