Setback as Treasury rejects MPs’ extra funding request

Parliament Buildings, Nairobi. Treasury has allocated only Sh1 billion for legislators’ mortgages and none for car grants. [PHOTO: FILE/STANDARD]

By James Anyanzwa

MPs’ push for cushy perks suffered a setback Tuesday as Treasury held back on funding.

The Parliamentary Service Commission (PSC) had asked for Sh2.5 billion and Sh700 million in the Supplementary Budget to finance their mortgage facilities and car loans respectively.

The National Treasury, however, allocated only Sh1 billion to mortgage facilities without allocating any funds to legislators’ car grant.

Parliament’s Budget and Appropriation Committee rebuffed MPs’ call for extra allocation, saying it flies in the face of the prevailing economic conditions.

Committee Chairman and Mbeere South MP Mutava Musyimi said its hands were tied because it operates on fixed budget set by the National Treasury.

“As a committee, we are working with the ceiling given by the National Treasury,” Musyimi said.

The Budget Committee also cautioned the commission (PSC) on misuse of public resources, saying the country is faced with other pressing financial needs which also require immediate attention.

Fixed budget

John Mbadi, a committee member and MP for Suba said MPs cannot go on asking for more funds to finance their lifestyle when the rest of the country is asking for austerity. PSC Vice-Chairperson Beth Mugo yesterday said, so far, only 205 members had received house loans. “We should note that the repayment of mortgage and car loan facilities, which is tied to the Parliament life, continues to shorten as Treasury bids its time,” Jeremiah Nyegenye, secretary to the PSC and clerk to the Senate explained

 In the 2013/2014 budget, the PSC had requested for a total allocation of Sh24.5 billion but was reduced to Sh19 billion.

“Arising from the reduction of the resource ceiling implementation of the planned activities has become difficult and very challenging,” he said. The expenditure areas that have been mostly been affected include mortgage, car loans, committee operations, refurbishment of buildings and payment of rents.

Other projects on the chopping board as a result of the reduced funding include senate project (Sh300 million), refurbishment of buildings (200 million), construction of buildings (Sh500 million) and security equipment (Sh500m).

The PSC had asked Sh10.85 billion and Sh1.5 billion for recurrent and development spending respectively in the supplementary budget.