90. Parliament may extend time limit Any House of Parliament may, by resolution, extend the time limit, other than a time limit set in the Constitution, for submitting a statement or other document required to be submitted to it under this Act.

91. Definitions for purposes of sections 86, 87, 88 and 89 For the purposes of sections 86, 87, 88 and 89— (a) “government-linked corporation” means a corporation in which the national government or national government entity is a shareholder with less than fifty percent of the share capital of the corporation; and (b) “invest” means any form of funding provided to a state corporation, including providing share capital, loans, guarantees, grants or subsidies. Resolution of operational and financial problems of national government entities and county governments

92. Responsibility for avoiding, identifying and resolving financial problems (1) A State organ or other public entity is primarily responsible for foreseeing, identifying, avoiding and resolving financial problems in that State organ or public entity.

(2) A State organ or other public entity shall ensure that the conduct of financial management is in accordance with the Constitution and this Act.

(3) If a State organ or other public entity encounters a serious financial problem or anticipates serious challenges in performing its financial function or meeting its financial commitments, it shall immediately— (a) seek solutions to resolve the financial problems; (b) notify the Cabinet Secretary or the County Executive Committee member for finance where the State organ is a county government organ; (c) notify the Controller of Budget and the Commission on Revenue Allocation; and (d) inform the Intergovernmental Budget and Economic Council, of the nature of the financial problem and proposed remedial measures it proposes to put in place.

93. Assessment of the need for intervention in accordance with Article 225 of the Constitution (1) If the Cabinet Secretary becomes aware of financial problems in a State organ or other public entity, the Cabinet Secretary shall promptly— (a) ascertain the seriousness of the problem and the proposed remedial measures or solution to the financial problem by the State organ or public entity; and (b) determine whether the situation constitutes a serious material breach or persistent material breach requiring stopping of transfer of funds under Article 225(3) of the Constitution.

(2) In the case of a State organ which is a national government entity, if the financial problem has been caused by or resulted in a failure by the national government entity— 65 No. 18 of 2012 Public Finance Management [Rev. 2020] (a) to perform its functions of comply with obligations imposed under the Constitution or any other Act; or (b) to meet its financial commitments, the Cabinet Secretary shall, guided by regulations, consider whether or not to take action under Article 225(3) of the Constitution and in terms of this Act.

(3) In the case of a State organ which is a county government or county government entity, if it— (a) does not operate a financial management system that complies with the requirements prescribed in this Act and the financial problem has met conditions for intervention in terms of Article 190(3) of the Constitution; or (b) is unable to meet its financial commitments as set out in the Constitution or this Act, this shall constitute a serious material breach or persistent material breach for purposes of stopping transfer of funds under Article 225(3) of the Constitution.

(4) When determining whether the conditions for the Cabinet Secretary to stop transfer of funds referred to in Article 225(3) of the Constitution are met, all relevant facts shall be considered before the Cabinet Secretary acts.

94. Additional indicators of serious or persistent material breach (1) The following factors, singly or in combination, may further indicate that a State organ or public entity is in serious material breach or persistent material breach of the measures established under this Act— (a) the State organ or public entity— (i) has failed to make any payments as and when due; (ii) has defaulted on financial obligations for financial reasons; (iii) had an operating deficit in excess of a percentage of revenue in the most recent financial year for which financial information is available as prescribed in regulations; or (iv) is more than sixty days late in submitting its annual financial statements to the Auditor-General in accordance with this Act or any other legislation; (b) the State organ or public entity has failed to make any other payment as and when due, which individually or in the aggregate is more than an amount as may be prescribed or, if none is prescribed, more than two percent of the State organ’s or public entity’s budgeted operating expenditure; (c) the Controller of Budget has raised material issues in their quarterly report; (d) the Auditor-General has withheld an opinion or issued a disclaimer due to inadequacies in the financial statements or records of the State organ or public entity or has issued an opinion which identifies a serious financial problem in the State organ or public entity; or (e) recurring or continuous failure by a State organ or public entity to meet its financial commitments which substantially impairs the State organ’s or public entity’s ability to procure goods, services or credit on usual commercial terms.