“A county's share of revenue raised by the National Government shall be transferred to the county without undue delay."
Image: EZEKIEL AMING'A
The National Treasury has come under fire from senators over late disbursement of cash to counties, a trend the lawmakers say has become rampant.
The senators said the late disbursements have crippled county budgets and disrupted programmes.
The Senators slammed the Treasury for holding onto the counties’ cash, saying the trend was hurting budget implementation in the devolved governments.
They said counties have been forced to incur huge pending bills because of the erratic exchequer releases.
The senators spoke after it was revealed the Treasury closed the 2019-20 financial year without disbursing Sh68 million to the counties.
According to a status report for 2019-20 cash releases as of June 30, the Treasury was yet to release Sh68.15 billion out of the Sh375.59 billion that was allocated to the counties during the year.
The senators criticised the unbecoming habit, saying the Treasury was embarrassing the counties besides disruption of plans.
“This issue of exchequer releases is embarrassing county governments. As I speak today, I have checked about four counties and the story that we are hearing is that up to now, the final tranche of release of the resources has not happened,” Kisii Senator Sam Ongeri said.
The veteran politician who chairs the County Public Accounts and Investments Committee (CPAIC), said the untimely and unpredictable manner of releases are causing a lot of distress and difficulties for county governments.
“This has been our worry all the time; that the National Treasury must at all times issue the Exchequer releases in a timely and predictable manner,” Ongeri said.
He added, “I think that we have identified the problem. The normal mischief is that they switch off the IFMIS. Right now, the IFMIS is not functioning.”
Article 219 of the Constitution states; “A county's share of revenue raised by the National Government shall be transferred to the county without undue delay and without deduction except when the transfer has been stopped under Article 25.”
Senate Deputy Speaker Margaret Kamar directed House Finance and Budget committee to immediately summon Treasury CS Ukur Yatani to explain the frequent violation of the Constitution and other laws on timely disbursement of monies to the counties.
Migori Senator Ochillo Ayacko, who is the vice-chairman of Finance committee and also a member of CPAIC, said delay in release of county cash and issues related to malfunctioning of the Integrated Financial Management Information System (IFMIS) are persistent audit issues.
“I suggest that we find out whether the delay, which seems to be endemic or, in fact, a pandemic in itself, is a violation of the law? Is the National Treasury violating the law by not releasing, with dispatch, the funds that are intended for counties?” Ayacko said.
Nominated Senator Mary Seneta said the delayed releases do not only disrupt programmes and operations but also subject county employees to untold suffering.
“It is a disaster because penalties paid for late remittance of statutory deductions are unbearable. It also increases legal fees because employees go to court to demand for their delayed salaries and statutory deductions,” she said.
The lawmakers criticism adds to the lamentations by the Council of Governors (COG) about the delayed disbursements.
“Mainly, we blame the National Treasury for equitable share because that is what they are supposed to disburse from the exchequer,” COG chairman Wycliffe Oparanya told the Star last week.
Edited by P.O