Tuesday, April 1, 2014

City Hall queries rushed clearance of suppliers debt

Politics and policy
City Hall, in Nairobi. Photo/FILE
City Hall, in Nairobi. Photo/FILE 
By KIARIE NJOROGE

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Nairobi County Assembly has taken issue with the clearance of some suppliers for payment even before a task force report on pending bills is completed.


County secretary Lilian Ndegwa told the Public Accounts Committee that the “few contractors” were cleared under special circumstances such as those handling projects that could stall. “But for the others like goods suppliers, we were categorical that they have to wait,” she said.
Dandora Area III county rep Charles Thuo said that clearing the companies before the report is tabled provided an avenue for corruption.

The committee had put Ms Ndegwa to task over why the suppliers were paid before the report was presented to Governor Evans Kidero. The task force was formed last November to audit the debts incurred before the devolved government took office.

Blacklisted
Ms Ndegwa said that a preliminary report was released two weeks ago but it had gaps that needed to be filled. The report is now expected to be handed over in the next three weeks.
She said that the task force had unearthed some irregularities that could see some suppliers blacklisted.

“For example, someone has billed the county for delivery of construction materials. But when you go to the registrar of motor vehicles, the registration is that of a motorcycle,” she said.
The committee was examining irregularities pointed out by the Auditor General in a report for the period up to September 2013.

City Hall executives said the debts were historical and arose from previous administrations spending more than they had, leaving the county in deficits.

Overemployment, they said, ate up all revenues leaving little for statutory payments for pensions and taxes with the Local Authorities Pension Trust, the Kenya Revenue Authority and the Local Authorities Provident Fund the key City Hall creditors.

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