Treasury on the spot for violating spending rule

National Treasury CS Henry Rotich(L) is accompanied by his PS.Kamau Thugge when they appeared before the National Assembly Implementation Committee at Continental House,Nairobi on Thursday 13/12/18. [Photo: Boniface Okendo,Standard]

The National Treasury is under fire for violating a directive requiring Government agencies to seek approval from Parliament for projects worth Sh1 billion or more.

The National Assembly passed the resolution in June in a move that was expected to give the legislature a degree of control in the country’s acquisition of new debt, according to the Budget and Appropriation Committee.

This meant that in addition to approving the budget, Parliament would also need to look into every contract worth Sh1 and above that any government agency signs.

However, Treasury has over the last five months spent more than this amount on various projects without seeking Parliamentary approval.

Cabinet Secretary Henry Rotich was yesterday taken to task by the Parliamentary Departmental Committee on Implementation over recent payments of Sh2.5 billion to maize farmers and the developers of the Lake Turkana Wind Power (LTWP) that had crossed the Sh1 billion threshold. Rotich also admitted there was more expenditure above Sh1 billion by different agencies, including the recently concluded Blue Economy Conference but defended the spending, saying this was informed by pressing needs.

“We have been addressing specific requirements that have come but were not appropriated. We had to provide for payment for farmers. We had budgeted for Sh1.4 billion for payment of farmers, but the total was Sh2.5 billion,” he told the committee at Parliament Buildings. He said he would give a breakdown of all projects where the spending may have surpassed the threshold.

The committee defended the resolution, saying it was not contrary to Parliament’s oversight role. “You cannot hide under the issue of separation of powers…. It would be like saying that Parliament’s oversight role is of no consequence and only reduce its role to just rubber stamping,” said committee chairman Moitalel Ole Kenta on Rotich’s assertion it violated the law on separation of power.

Business
Premium Financial hardships dampen Easter celebrations among Kenyans
Business
Premium Looming crisis as top lenders stare at Sh500b in bad loans
Business
Premium Water PS Korir put on the spot over Sh14m dam land
Business
Premium Ruto's food security hopes facing storm amid fake fertiliser scam