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Governors fault Treasury on disbursed funds

By Rawlings Otieno | Dec 2nd 2013 | 2 min read
By Rawlings Otieno | December 2nd 2013

By Rawlings Otieno

Nairobi, Kenya: Governors have differed with the National Treasury over County Revenue Funds figures published last month.

Council of Governors Finance Committee chair Abdulahi Mohamed clarified that Kajiado, Wajir, Isiolo and Taita Taveta counties have budget disparities and now wants the Treasury to rectify the figures published.

In a paid up newspaper advert, Mohamed, who is also Wajir Governor, said that most counties had reimbursed the national government for the salaries paid despite the challenges of the Integrated Financial Management Information System (IFMIS). According to Mohamed, Isiolo has so far spent Sh237.5 million contrary to Sh93.8 million published by Treasury.

“We request Treasury in future to consult with county governments on such issues that may cause anxiety. The consultation mechanism is provided under Article Six,” reads the advert.

The released third tranche of the equitable share of revenue to county governments, the cash disbursement schedule approved by Senate indicate how the county governments have received and spent money since coming into office.

Mr Mohamed clarified that the money was mostly transferred to commercial banks accounts, but Treasury stopped transferring money and directed that cash would be paid directly by the Central Bank through IFMIS.

Procure goods

“The national government started disbursing funds to the counties late July. The counties have endeavoured to follow procedure of the Public Procurement Act. It takes a minimum of 21 days for advertisement in two dailies with wide circulation followed by another 21 days for analysis. When this is followed, the shortest time any county could procure goods and services effectively was September,” said Mohamed.

The advert by Treasury, Mohamed says it did not recognise conditions set by the Controller of Budget required before the counties can access the money.

“Treasury should get the financial analysis from the County Executive Committee members of finance, so that we have an open system of checks and balances,” reads part of the advert.

For any revenue raised, the Controller of Budget and the public finance management law requires revenue is swiped into Central Bank before authority to incur expenditure is given.

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