Treasury rejects Senate's order to freeze funds for three counties

Bomet Governor Isaac Ruto with his Kisumu counterpart Jack Ranguma during the launch of Pesa Mashinani campaign on September 20, 2014 in Bomet. PHOTO | JEFF ANGOTE 

advertisement

By DENNIS ODUNGA
More by this Author

Treasury has rejected Senate’s decision to freeze funding to three counties on grounds that audit queries cited by Senators affect other counties as well.

Treasury Principal Secretary Kamau Thugge, who appeared before the Senate Public Accounts and Investment Committee on Thursday, said there must be serious breach of the Public Finance Management Act to warrant the Cabinet Secretary to effect the order.

The PS told the committee, chaired by Dr Boni Khalwale (Kakamega, UDF), that Treasury had asked for more information on what informed the Senate’s decision to enable the Cabinet Secretary decide on the matter.

The PS explained that in the event the Cabinet Secretary is satisfied, only 50 of the scheduled disbursements can be stopped at any given time and not the whole amount allocated to counties for the financial year.

“Stoppage of the funds can only be for a period of 60 days,” he said.

AUDIT QUERIES

Treasury has been given 14 days to stop disbursement of funds to Bomet, Kisumu and Kiambu counties whose governors have failed to honour summons from the Senate's Committee.

The Senate Public Accounts and Investment Committee challenged Treasury Principal Secretary Kamau Thugge to respect resolutions from Parliament and desist from buying time on the matter.

Mr Thugge had appeared before the committee alongside the Controller of Budget Agnes Odhiambo and senior officials from the Auditor General’s office.

The committee maintained that they had provided Treasury with sufficient information to enable them stop disbursement of funds to Mr Isaac Ruto (Bomet), Mr Jack Ranguma (Kisumu), and Mr William Kabogo’s counties (Kiambu).

Murang’a County, initially blacklisted, has since been cleared after Governor Mwangi wa Iria appeared before the committee to respond to audit queries.

OTHER COUNTIES

The PS found himself in trouble on Thursday when he said that the audit queries affecting the four counties were also common in other counties, besides not meeting the threshold to warrant withdrawing of funds to the affected counties.

“Why does it concern you that action has not been taken against other counties? These rogue governors are the ones we have to deal with to protect public funds,” said Dr Khalwale.

The committee members also accused treasury of treating the matter casually yet there was sufficient information at their disposal to enable them implement the Senate’s verdict.

“The Auditor General and Controller of budget have been spot on in submitting regular reports. Treasury has treated this matter casually. You have taken too long as if decisions of the Senate do not bind,” said Dr Khalwale.

The committee also took issue that the Cabinet Secretary Henry Rotich did not personally attend yet he knew the committee expected him because of the veracity of the matter.