Governors claim Treasury sabotaging devolution

June 27, 2015 2:17 pm
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In a statement by the Council of Governors on Saturday, said counties have not received monies for the months of May and June as provided by the Constitution/FILE
In a statement by the Council of Governors on Saturday, said counties have not received monies for the months of May and June as provided by the Constitution/FILE
NAIROBI, Kenya, Jun 27- Governors are now accusing the National Treasury of sabotaging devolution by what they term as continued trend of delay in releasing county funds.

In a statement by the Council of Governors on Saturday, said counties have not received monies for the months of May and June as provided by the Constitution.

“Shockingly, the National Treasury released to some County Revenue Funds money meant for May as late as Thursday, 25 June 2015. Article 207 (3) of the Constitution of Kenya, 2010 provides that County Governments cannot withdraw money from the County Revenue Funds unless the Controller of Budgets has approved that withdrawal,” Council of Governors Chairman Peter Munya complained.

The Treasury was supposed to have released the said monies for those months including April on and not later than April 15, 2015.

They say the result of what they term as irregular disbursement, has been poor cash flow planning at the county governments and therefore hampering absorption of the said funds.

“The National Treasury shall at the beginning of every quarter and in any event not later than the fifteenth day from the commencement of the quarter, disburse monies to county governments,” Munya said.

To date the County Governments have only received money up to April 2015.

The governors say the process of requesting the Controller’s approval takes a minimum of three working days before the approval is taken to the Central Bank of Kenya where it takes another one working day before such money is available for County Governments’ expenditure.

Governors accuse Treasury has continuing to ignore the provisions of the Public Finance Management Act, 2012 by releasing money “irregularly to the County Governments.”

County Governments are expected to close the year on 30 June 2015 and prepare a refund statement pursuant to Section 136 of the Public Finance Management Act.

On that date they will have to report that they have huge balances in their bank accounts held at the Central Bank of Kenya and the National Treasury will in turn publish in the dailies those balances.

“The purpose of this notice is to bring to speed the understanding of the public that the National Treasury is deliberately breaching the provisions of the Public Finance Management Act, 2012,”he said.

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