Irrigation Board and Treasury tussle over contested Sh2.6 billion

The State irrigation body is locked in a dispute with the National Treasury over repayment of Sh2.6 billion that it was granted six years ago.

While Treasury insists the money advanced in 2013 was a loan that should be paid back, the National Irrigation Board (NIB) claims the money was a grant given by the Government towards the implementation of the National Resource Management Project.

NIB Chief Executive Officer Gitonga Mugambi told a parliamentary committee that although there was pressure from Government to repay the money, the agency was not in a financial position to comply.

Mr Mugambi told the Public Investment Committee (PIC), which is chaired by Mvita MP Abdulswamad Nassir, that unless the Government comes to NIB’s rescue and advances it money to pay off the debt, they would not honour the claim from Treasury.

“The Sh2.6 billion reflected in the Government’s outstanding loan statement is not captured in the books of the National Irrigation Board as a loan.

“To us it is not a loan. The disbursement was captured as part of development grants,” Mugambi said.

Complete audit

A letter authored by National Treasury Principal Secretary Esther Koimett and addressed to Mugambi asks NIB to confirm the loan balances to allow Auditor-General Edward Ouko to complete an audit in the ministry.

“The National Treasury submitted for audit purposes, the statement of outstanding loans as at June 30, 2017 to the office of the Auditor General.

“To enable the Auditor General finalise the audit process, you are requested to confirm the loan balance as at June 30, 2017 directly to the office of the Auditor General,” the letter reads.

“The copy to the National Treasury should include breakdown of the outstanding loan amount and the analysis of loan disbursement to facilitate reconciliation. Please provide the same as soon as possible,” the letter further read.