Rotich warns public managers against resource misuse
16 January 2014, 08:25
Nairobi - The National Treasury Cabinet Secretary, Henry Rotich, has cautioned public officers against misappropriation of funds meant for development.
He said the government is in the process of initiating the Performance Management system to enhance the ability of public managers' innovative techniques in using public resources to achieve planned results.
"This system intends to scale up the need for greater accountability by public managers who should demonstrate tangible value in the utilization of public resources," Rotich noted.
He stated that the monitoring system will be more effective by the rationale of the government adopting Program-performance Based Budgeting(PBB) as a major public finance management reforms.
"Program-performance based budgeting is an effective tool of accountability which incorporates a detailed framework of budgeting. It requires public managers to justify and align their spending requirements with expected outcomes and outputs," he said.
Rotich remained optimistic that the system will curb misappropriation of public resources since public managers are required to provide feedback on the performance or results achieved on relevant programs by expending the provided budgetary resources.
Moreover, he said the government is implementing procurement reforms to strengthen service delivery, eliminate waste and root out corruption.
"In reviewing the procurement system, we will also ensure that its contribution to the empowerment of the youth, women and the disadvantaged is enhanced," he assured.
Rotich added that measures are to be put in place to reduce the public sector wage bill which he noted that high spending on it takes away resources meant for infrastructure, health, education,other public investments, and service delivery.
"I wish to reiterate that wage increases must be consistent with the overall resource envelope based on a desired fiscal position of the government," he said.
Furthermore, he said that although the Constitution requires an equitable division of revenue between the national and county governments, his Ministry will find ways to achieve savings, eliminate waste and re-prioritize spending towards key social and development objectives in the two governments.
He said about a third of all latest audited revenues raised by the national government in tax forms will be transferred to counties where the county's share will largely depend on devolved functions as transferred by and gazetted by the Transitional Authority.
He was speaking during the launch of public hearings on the 2014/15 MTEF budget where he challenged citizens to turn out for such important functions. He stated that public participation on financial matters is not a choice but a mandatory enshrined in the Constitution and Public Finance Management Act(PFM), 2012.
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