Parliamentary team wants struggling agencies disbanded

State corporations targeted by the Public Investments Committee (PIC) in its report include those performing non-strategic functions but which rely heavily on the government for funding.PHOTO: COURTESY

A Parliamentary committee wants non-performing parastatals disbanded.

State corporations targeted by the Public Investments Committee (PIC) in its report include those performing non-strategic functions but which rely heavily on the government for funding.

In the report, PIC said any relevant functions performed by the agencies to be disbanded should be transferred to other government departments.

The committee chaired by Wajir West MP Aden Keynan also called for restructuring and privatisation of other corporations to reduce the financial burden on Treasury.

In their 2013-2014 audit, the team listed the Horticulture Crops and Development Authority, National Museums of Kenya, Pyrethrum Board of Kenya, Kenya Meat Commission (KMC) and South Nyanza Sugar Limited among those facing financial challenges.

In the 2013-2014 financial year, 181 state corporations gobbled up Sh419.55 billion, an increase from Sh376.5 billion allocated in 2011-2012. About 40 per cent of the money went to recurrent expenditures.

The committee has grilled CEOs and senior managers of 64 state corporations after the Auditor General took issue with their accounts.

The team wants any parastatals performing devolved functions by relying on Treasury for funding disbanded and the functions given to the counties.

Heavy reliance on Treasury means without this support, several corporations would have difficulty meeting their financial obligations.

The committee wants Treasury to fast-track the restructuring and privatisation of the corporations to address their commercial viability.

Among those facing financial difficulties is KMC, which continues to use old machines. The corporation also has a workforce of 1,165 against a recommended 300.