(5) The Cabinet Secretary may not stop the transfer of more than fifty percent of funds due to a county government.

(6) Any person may exercise his or her right to petition Parliament in terms of Article 119 of the Constitution in respect of the action taken to stop the transfer of funds.

98. Renewal of decision to stop funds and termination of stoppage (1) Where the Cabinet Secretary has applied to Parliament to renew a decision to stop the transfer of funds for a period beyond the sixty days, a time allowed by the Constitution, as soon as practicable but not later than fourteen days after being informed of the decision to renew the period, the Controller of Budget shall prepare a report on the matter to Parliament.

(2) The report referred to in subsection (1) shall provide an independent opinion on findings on details of the material breach or persistent material breaches in such a manner as to allow Parliament to make a decision within thirty days on whether or not to approve the renewal of the decision to stop the transfer of funds.

(3) An intervention based on Article 225(3) of the Constitution and provisions of this Act shall end when— (a) the serious or persistent material breach in the State organ’s or public entity’s financial affairs has been resolved; (b) the State organ’s or public entity’s ability to meet its obligations to provide basic services or its financial commitments is secured; or (c) Parliament has declined to renew the Cabinet Secretary’s decision to stop transfer of funds.

(4) Where Parliament has not renewed a decision in terms of Article 225(6) of the Constitution to stop the transfer of funds, all funds held during the period of the stoppage shall be released within a period not exceeding fifteen days.

99. Provision for a recovery plan (1) If as a result of an assessment using criteria provided for under this Act, the Cabinet Secretary determines that there is a serious or persistent material breach or that a county government is unable to perform its functions, the Cabinet Secretary shall— (a) notify the county government and the Cabinet Secretary responsible for matters relating to intergovernmental relations, of the finding and the intention to intervene; (b) consult the county governor to obtain the county government’s cooperation in the development and implementation of a recovery plan, including the approval of a budget and legislative measures giving effect to the recovery plan; (c) in consultation with the county government, prepare an appropriate recovery plan for the county government; and 68 [Rev. 2020] Public Finance Management No. 18 of 2012 (d) notify the Controller of Budget, Senate, the Joint Intergovernmental Technical Committee and the Auditor-General of the findings and the content of the recovery plan.

(2) The approved recovery plan by the Joint Committee shall form the basis for releasing funds withheld during the period of stoppage and the release of subsequent transfers to a state organ or public entity.

(3) The purpose of the recovery plan referred to in subsection (1) shall be to secure the county government’s ability to meet its obligations to provide basic services or its financial commitments.

(4) The recovery plan under this section shall— (a) identify the financial problems; (b) be designed to place the county government in a sound and sustainable financial condition as quickly as possible; (c) state the principal objectives of the plan and ways and means for achieving those objectives; (d) provide budget parameters which bind the county government for a specified period or until stated conditions have been met; (e) identify specific revenue raising measures that are necessary for financial recovery, including the rates at which tariffs should be set to achieve financial recovery; (f) set out a specific strategy for addressing the entity’s problems, including a strategy for reducing wasteful expenditure and increasing the collection of revenue, as may be necessary; (g) identify the human resources and the source of those resources; (h) describe the anticipated time frame for the recovery, and the milestones to be achieved; and (i) identify what actions are necessary for the implementation of the plan, distinguishing between actions to be taken by the entity and actions to be taken by other parties.