Auctioneers go after ‘broke’ Makueni MCAs

Effects of the impending dissolution of the Makueni County government are starting to be felt. MCAs who had targeted Governor Kivutha Kibwana with an impeachment motion are now feeling the heat of their action; their salaries have been frozen and auctioneers are closing in.

Financial institutions, fearful that most MCAs might not make it back to the Assembly should new elections be called, have opted to have vehicles and other assets that the MCAs acquired on credit be repossessed.

The MCAs, many of whom now admit to be in financial distress, have not received their November and December salaries following the move taken by Finance and Planning Executive, Alidan Mbinda, to close the Assembly accounts after members refused to submit their expenditure reports for scrutiny.

Special interest rate

Speaking to The Nairobian, the Leader of Minority party in the Assembly John Muli Mwenze, said the situation at the County Assembly was so dire that they cannot even afford to buy drinking water for members. “Things are thick... I cannot use a vehicle allocated to me as Leader of Minority because there is no money for fuel, besides, I cannot fuel it with my own money since I have not been paid,” lamented Mwenze.

“There was a special agreement between Rafiki Bank and individual MCAs to access credit at a special three per cent interest rate. But when we defaulted in November, the bank decided to drop the special interest agreement and so, those who took car loans will have to pay 18 per cent interest rates like other borrowers.

If we default again in December, then we risk having our cars auctioned,” the Nguumo Ward representative added.

The Nairobian has received information to the effect that some of the financial institutions have secured the services of auctioneers, who are now closing in on the defaulting MCAs. Already, one auctioneer is zeroing in on four MCAs.

The auctioneer, who did not wish to be named for fear of breaching the auctioneer/bank confidentiality, said the MCAs in questions have hidden their vehicles. “They cannot hide forever,” he warned. “These vehicles have tracking devices and that is what we will use to recover them,” he revealed.

The Minority Leader said he had met with 25 MCAs and resolved dialogue with the Executive arm of the county government, headed by Governor Kivutha Kibwana, with a view of withdrawing all court cases so that they can save the situation.

Kasikeu ward representative, Paul Malinda, says the salary freeze has even affected his employees. “I’m now forced to pay them half their salaries and that is infringing on their rights because somebody else is infringing on mine,” he complained. He alleges that the move to freeze the Assembly’s accounts was a punitive. “The Executive arm wants to intimidate us. We are not refusing to account for our expenditure, but we can’t do that to the Executive,” said Malinda, adding that the Assembly should only be accountable to the Controller of Budget.

Public Finance Management Act

On November 13, Mbinda, while sanctioning the move to freeze the accounts, released a statement explaining that as head of the county treasury, he had taken the decision after the Assembly failed to submit their books of accounts for inspection.

“The County Assembly’s failure to adhere to procedures and requirements of the Public Finance Management Act, 2012 leaves the head of treasury with no option but to invoke section 105(b) and consequently order, with immediate effect, the stoppage of funds to the County Assembly,” the statement read in part.

The Assembly clerk Edward Libendi and Speaker Steven Ng’elu challenged the decision to close the accounts at the High Court on behalf of the Assembly. That application to have the Assembly’s bank accounts re-opened was dismissed last week.

The court ordered the Assembly to submit its expenditure reports to the county executive before more funds could be released. The duo, who maintain that the Assembly is an independent entity that cannot subject its expenditure to the executive for audit, have moved to the Court of Appeal to challenge that decision.

The Nairobian has also learnt that the Assembly clerk and speaker met the executive in charge of finance on Wednesday but were told to withdraw the court case before any negotiations could begin.

Photo: Antony Gitonga