PSs Face Stiff Fine for Breaching Legal Agreements

ByNasha Kagua
Published on: Jan 31, 2023 08:01
Attorney General Justin Muturi. Photo|Courtesy

Principal Secretaries and CEOs of companies owned by the government will face penalties for breaking legal agreements as the State works to overturn growing court judgments against it, which have reached over Sh150 billion.

This follows a rise in contract violations, wrongful terminations, human rights abuses, and other legal conflicts.

According to Attorney General Justin Muturi, new rules should be proposed to make 'reckless' government accounting professionals responsible for the expenses of unlawful decisions. 

“Greater vigilance is required to control the escalation. Going forward, I may be forced to recommend that State officers who are shown to be reckless in decision-making assume personal liability in certain instances,” AG Justin Muturi said.

The National Treasury is having difficulty paying the court awards since nearly all income is used for debt repayment and public employee wages.

A review of the budget reports provided to the Treasury prior to the allocation of funds for the budget year beginning in July reveals fines of Sh108.32 billion against ministries and State-owned businesses.

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