CDF board’s exit stalls flow of cash to constituencies
The National Assembly in session: MPs were told that the CDF fund cannot conduct business without a board of directors. PHOTO | FILE
What you need to know:
The absence of directors has stalled disbursement of funds to the constituencies that usually starts in September of every financial year.
The 11-member Constituencies Development Fund (CDF) Board left after its tenure expired in September without the appointment of successors.
Part of the board’s mandate is to receive and approve proposals for project financing before releasing funds.
Last month’s exit of the entire Constituencies Development Fund (CDF) Board has stalled the multi-billion shilling kitty’s operations, raising fears over the fate of hundreds of incomplete projects.
The 11-member board left after its tenure expired in September without the appointment of successors.
The absence of directors has stalled disbursement of funds to the constituencies that usually starts in September of every financial year. Part of the board’s mandate is to receive and approve proposals for project financing before releasing funds.
A number of constituencies had not presented their list of projects by end of August, while the board rejected a large number of proposals submitted for non-compliance with the CDF Act.
Only constituencies whose projects were approved will continue to receive money from the kitty while the rest must wait for the appointment of a new board.
In August, the board, chaired by Ms Jennifer Barassa, stopped 137 constituencies from spending millions of shillings on projects that are not compliant with the law.
Other members of the board were Yusuf Mbuno (acting chief executive) Rosalia Shida Nyalle, Dr John Wamakonjio, Dr Charles Onchoke, Hillary James Nyaanga, Joseph Mukui, Consolata Munga, Dr Jane Kabugi, David Koross and Odongo Okeyo.
Mr Mbuno has acted as CEO for four years, raising queries over the Planning ministry’s handling of the fund.
Enactment of a new CDF law last year reduced the size of the CDF board from 17 to 11 members and established the office of the corporation secretary whose holder is a member and secretary to the board.
The board is required to consider and approve or reject project proposals before releasing funds to the respective constituency fund accounts. Planning principal secretary Peter Mangiti has promised that the ministry will soon name a new board for a three-year tenure.
“I want to assure you that the ministry is moving fast to fill the vacancies in the board. Plans are at an advanced stage to have a new board hopefully in a week’s time,” Mr Mangiti told the Public Accounts Committee last Thursday.
The law requires the national government to set aside 2.5 per cent of the total audited revenue raised by Kenya Revenue Authority for disbursement to the constituencies. The Treasury allocated the fund Sh33 billion in this financial year.
The board, which has the mandate of sharing the cash among the 290 constituencies, allocated Sh32 billion to CDF projects and an additional Sh243 million for rehabilitation of schools. The secretariat, which Mr Mbuno runs, will receive Sh1.65 billion.
This year, the fund was allocated nearly Sh11 billion more than the Sh21.9 billion it received in the year ended June. Mr Mangiti told MPs the fund cannot conduct any business without a board, making it imperative to appoint new directors.
He said the setting up of the new board and recruitment of a CEO was ongoing and would be completed in a week’s time.
In rejecting proposals submitted by the MPs for funding, the board said many were not in the public interest, but were instead meant to serve parochial political interests.
In its monthly status report for August, the board reported that it had blocked the purchase of vehicles and several other expenditures that some lawmakers had proposed.
Constituencies whose proposals were rejected include Kasipul which had set aside Sh500,000 for the purchase of cemetery land, Kitutu Chache South which budgeted Sh6 million to build a tea factory and Turkana Central which wanted Sh6.5 million to buy a Toyota Land Cruiser and a pick-up “fitted with all accessories, including electronic and manual winches”.
The CDF board rejected the requests on grounds that cemeteries and tea factories are devolved functions that are handled by county governments.
The CDF Act allows the Constituency Development Fund Committees (CDC) to acquire only one vehicle.
The constituencies that were yet to submit their proposals by end of August include Alego Usonga, Bonchari, Kaloleni, Kanduyi, Kieni, Kitui Rural, Machakos Town, Maragwa, Muhoroni, Nyatike, Nyeri Town, Ruaraka, Subukia and West Mugirango.
The board said it had no option but to provide the constituencies with the bare minimum funds for administrative costs, emergency spending on bursaries, and monitoring and evaluation.
Mr Mangiti had appeared before the PAC alongside constituency office managers from various constituencies to respond to audit queries raised by Auditor-General Edward Ouko.
PAC chairman Ababu Namwamba ordered a special audit on CDF expenditure for Bomet and Chepalungu constituencies which had incomplete projects worth Sh203 million, according to Mr Ouko.
The constituencies that were headed by Beatrice Kones and Isaac Ruto (Bomet governor) could not account for millions of shillings spent since 2003 when the CDF was established.
Meanwhile, the Auditor-General’s office and the National Assembly’s Select Committee on CDF have differed over the imposition of audit fees for each constituency.
Mr Ouko says each constituency should set aside Sh500,000 to pay for audit while the MPs insist that a provision be made in the national budget to finance the exercise.
MPs are negotiating with the Treasury and the Budget and Appropriations Committee for possible creation of a national vote to offset audit costs.
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