National Treasury report exposes misuse of climate funds by counties

The National Treasury midterm report has exposed the misuse of first phase of climate change funds dubbed Financing Locally Led Climate Action (FLLoCA). This was revealed during a three-day National Convention for Civil Society Organisation(CSO) Engagement in FLLoCA Implementation at Maanzoni Lodge in Machakos County. The report focused on efficiency and effectiveness of the FLLoCA implementation delivery and progress in 41 counties and five counties including Mombasa, Kilifi, Wajir, Mandera and Siaya that had audit queries. Nairobi was not among the 47 counties because till today it has not met minimum requirements needed by World Bank including establishing a climate planning committee. In April last year, a resolution was passed by the steering committee of the (FLLoCA) programme of the National Government Treasury, that directed Sh7.3 billion to be distributed to 45 counties that meet the program's eligibility requirements in the fiscal year at that time. The counties were allowed to fund grassroots climate resilient projects with over Sh10 billion available to them. In October last year, World Bank stopped funding Kakamega County climate change-resilient actions after the county government allegedly embezzled of millions of shillings meant for community-led climate-resilient projects. Sources revealed that the county, failed on its 2023-2024 budget commitment to kit FLLoCA account at Central Bank of Kenya (CBK) with Sh109 million but instead raided the fund with pay-outs amounting to Sh60 million when a cash transfer of Sh292 million from the World Bank was reflected on the account. Reports indicate that Sh60 million was irregularly paid out to among others Waypoint Suppliers Kenya Limited (Sh16.7 million), Tonniesanto Investments (Sh13.6 million), Pan Pacific Kenya Limited (Sh22.3 million) and Actra Africa (Sh2.5 million) for work not procured under the FLLoCA programme. It is alleged that Waypoint and Tonniesanto supplied solar installation materials for rehabilitation works on the Savona Water Supply project. On the other hand, Pan Pacific allegedly supplied electric fencing material for the Kakamega Forest Reserve. Although the projects have connection with climate change, they are seldom in the County Climate Actions Plan (CCAP) and did not pass through the Participatory Climate Resilient Assessment (PCRA), which is a key requirement for any FLLoCA project. However, reached for comment, Kakamega County Governor Fernandes Barasa said in a brief text message: "That is not the true position.... the issue was the county to deposit counterpart funds of Sh60 million, which we agreed with the National Treasury to do so in three instalments." Pan African Climate Justice Alliance (PACJA), Kenya Platform for Climate Governance(KPCG), County Governance Watch, Action Aid and VSO Kenya in 24 counties on FLLoCA, raised concern over misuse of the funds among other issues. "Of course we are concerned about the issue of corruption at the local level, which we want to really address. And these are some of the mitigations we are putting together with Program Implementation Unit (PIU) because this is our process. We have a very responsive IPU," said Mithika Mwenda, PACJA executive director during the convention. Further, there is weak community participation and information flow. "Communication does not trickle down to the common mwananchi about FLLoCA projects signifying weak communication and information flow strategies that have led to low awareness of FLLoCA's goals and activities by communities' members," said Mwenda. "Limited engagement of community, women, youth, and marginalised groups affecting inclusivity with notably, over 6 percent of respondents reported not seeing nor being able to distinguish between FLLoCA projects from the county developmental projects funded by generic sectorial county budget in the county. Clearly these gaps can be expeditiously closed," he added. Peter Odhengo, the head of Climate Finance and Green Economy at the National Treasury and Economic Planning said the convention was necessary first for election of CSOs representatives and capacity-built on how they offer oversight to FLLoCA usage. "This process today is a process that now requires that the civil society, which is a very key component of building the local resilience, bringing in the communities together, the civil society has to take their role, the government has taken their role," said Odhengo. "Within the mobilisation of almost now $300 million (Sh38.7 billion) for five years from 2021 to 2026, the civil society now needs to come up. It is on this that we started the process over the last two years to conduct elections for CSO FLLoCA regional representative's office bearers and the CSOs to be equipped on how to take part in usage of FLLoCA," he added. Faith Ngige, national coordinator for the Kenya Platform for Climate Governance(KPCG), said the study revealed that members still complain that the information about FLLoCA is not clear. "That there is political interference in the determination of the projects that are designated to be FLLoCA, and the communities are not able to distinguish between the ordinary developmental projects together with what is assigned as a FLOCA project," said Ms Ngige. Therefore, as KPCG, we will be holding our leaders of the counties into account and empowering them and working with them throughout the journey in the two years that have remained for the pilot period of the FLOCA before we get to the GFLOCA, and also helping to catalyse the lessons that are being learned into the full-scale GFLOCA program when it comes into place for the country by the year 2030," she added. Election of regional representatives of Civil Society Organisations (CSO's) across the country on FLLoCa happened at the Maanzoni Lodge. The chairpersons will form the CSOs national steering committee of the civil society organisations' and will work closely with the FLLoCA 's PIU and FLLoCA Inter-Agency Advisory Committee (ITAC) to deliver the project FLLoCA in enhancing coordination of locally led climate actions, social accountability and oversight of community participation in FLLoCA. Rift Valley chairman will be Dr David Busienei (Nandi) Chairperson, Roseline Leiro (Baringo) Vice Chairperson and Caroline Lanoi from Narok County as Secretary. North Eastern will be represented by Mr Abilkadir Sugal (Mandera County) as Chairperson Hassan Ali(Wajir), Vice Chairperson and Abdi Hassan (Garissa) as Secretary. Nyanza Region will be represented by Nancy Ngonga from Migori County as Chairperson, Doughlas Onkeo (Nyamira) as Vice Chairperson and Wendy Odhiambo from Kisumu County as Secretary. Patrick Katelo from Marsabit County will be Chairperson for Eastern Region, Ruth Kawira(Meru) as Vice Chairperson and Felix Muendo from Makueni County as Secretary. The Central Region will be represented by Dr Njogu Barua from Kirinyaga County as Chairperson, Stanley Kirimi from (Laikipia) as Vice Chair and Hellen Mumbi Nyandarua as Secretary. Western Region will be led by Ms Pauline Saris from Busia County assisted by Ezekiel Odeoh from Bungoma County as vice chairperson and Brendah Okongo from Kakamega County as Secretary. Nairobi will not be represented because it is yet to meet the requisite requirements.

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National Treasury report exposes misuse of climate funds by counties

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