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Wednesday, February 26, 2014

MPs plot to take control of Sh3b fund from governors


The National Assembly in session. PHOTO/FILE 
By JOHN NGIRACHU
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MPs on Wednesday began acting on their resolve to reduce governors’ powers by unanimously supporting a Bill to take the management of the Sh3.4-billion Equalisation Fund away from county governments and give it to the Constituency Development Fund.


The Bill is sponsored by Samburu West MP Lati Lelelit and seeks to amend Article 204 of the Constitution so that money allocated as the Equalisation Fund is managed at the constituency instead of the national level.

MPs argued that because the Constituency Development Fund structures are well established, money designated to be spent at the national level is better spent using that model.

They also took the opportunity to pour scorn on the governors, who they accuse of being spendthrifts.
Also lined up on the Order Paper were the National Emblems, Flags and Names (Amendment) Bill and the County Governments (Amendment) Bill, which Parliament agreed would be fast-tracked to whittle down governors’ powers.

On the Equalisation Fund, MPs are hoping to amend the Constitution by parliamentary initiative and to have the Bill signed into law by the President on the basis that it does not affect “the objects, principles and structure of devolved government.”
“This Bill does not infringe or limit any fundamental rights or freedoms nor does it propose to delegate any legislative authority,” Mr Lelelit says in the Bill and therefore, no referendum is needed.
If the MPs succeed, the Equalisation Fund would be shared as part of the CDF. The Second Reading of the Bill was interrupted because the morning sitting ended.
Calculated as 0.5 per cent of the latest audited accounts, the Equalisation Fund has been set at Sh3.4 billion for the next financial year.

The Commission on Revenue Allocation has identified the 14 counties to benefit from the allocation; Turkana, Lamu, Mandera, Wajir, Marsabit, Samburu, West Pokot, Tana River, Narok, Kwale, Garissa, Kilifi, Taita Taveta and Isiolo.

Because of differences between the CRA and the Treasury on how the fund would be managed, the money was not shared in the first financial year under devolution.

TREASURY
Treasury has however included the fund in the Division of Revenue Bill currently with the Commission on the Implementation of the Constitution.
Although the Bill by Mr Lelelit was not among those designated to reduce the powers of governors, it has the same effect because those from the 14 counties will collectively have Sh3.4 billion less.
Mr Lelelit said that while CRA did a good job identifying the 14 counties that should benefit from the fund, their thinking that the money should go to the counties was wrong because the Constitution “does not talk about marginalised counties.”

“The Constitution is very clear that the Equalisation Fund is a national fund. It is nothing to do with the counties, so the reason why I said the CRA is somewhat drunk with the counties, is that when they were identifying these areas, they put the county as the area of focus,” said Mr Lelelit.
He said by having the chairman of the Council of Governors sit in the committee on the fund, the CRA acted in breach of the Constitution.

“We have nothing wrong with our governors but I think they have enough money in their pockets and whatever is national should stay national,” said Mr Lelelit.

Saying he was speaking as a pastoralist and MP for Garissa Town, Majority Leader Aden Duale said the Constitution’s intentions regarding devolution have been subverted by governors.
“It is sad today that the people who will not benefit from devolution are the people of northern Kenya,” said Mr Duale.

He said devolution was meant for marginalised areas but that the governors from those areas have become the enemies of the people.
“The first year is coming to an end but if you go those regions, you will not see any sign of devolved money,” said Mr Duale.

“What we see in our region, in northern Kenya, are governors driving with 50 cars on the most dilapidated roads in that region, amongst the poorest people, with flags and flamboyant power,” he added.

Tiaty MP Asman Kamama said in areas like Suguta Valley, where bandits are a constant menace, the presence of government is not felt and asked MPs to pass the Bill so that such places can be developed.

“We need to amend this Constitution and members, don’t fear changing this Constitution,” he said.
Saying he has served in government, Mr Kamama told the House the situation in upper Eastern, most of North Eastern and the upper Rift Valley is dire and people there do all they can to merely survive.
“CDF is the best model in the entire continent from the Gulf of Sirte in Libya to Cape Town. This is the best development model that has actually been formulated in Africa because 95 per cent of this money goes directly to development, about three to five per cent to administration,” he added.
“What we have in counties now is a sorry state of affairs because almost 70 per cent is going to salaries, 30 per cent is going to development and that 30 per cent is actually with a lot of corruption in it,” he added.

He provoked laughter with an assertion that governors in counties that are largely rural have chase cars with sirens.
Korei Ole Lemein (Narok South, URP) said supporting the Bill meant supporting the very marginalised people in Kenya.

CONSTITUTION
Mohammed Shidiye (Lagdera, URP) said handled through the CDF, the Equalisation Fund will make a real difference to life in the marginalised areas, most of them in the north of country neglected by successive governments since independence.

Patrick Ole Ntutu (Narok West, URP) said; “CDF is the only money that is really working on the ground and therefore, this Equalisation Fund is really meant to go help those constituencies that need help.”

Samuel Gichigi (Kipipiri, APK) said the disbursement of the Equalisation Fund is late but the provisions in the Constitution are ambiguous on how the money would be disbursed.
He said the proposal that the Fund be disbursed through county governments was faulty because they were likely to fail to use it the same way money meant for roads previously under the urban
and rural roads’ authorities was not spent and had to be reallocated under the Supplementary Budget.
Benson Makali Mulu (Kitui Central, Wiper) argued that the constituency is a lower level of devolution and with the established structures under the CDF, that money would be put to better use than at county level.

Charles Njagagua (Mbeere North, APK) argued that because a lot of county development funds are lying idle in their accounts at the Central Bank, it wouldn’t make much sense to add them more money.

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