Heritage

Nyakangó: Rules stickler aims to end funds wastage

nyaka

Controller of Budget Margaret Nyakang’o after her swearing-in presided by Chief Justice David Maraga on December 4. PHOTO | DIANA NGILA

Margaret Nyang’ate Nyakang'o is a tough talker and stickler to rules as regards management of public funds.

In her view, the Treasury is justified in withholding funds to counties and State agencies that do not adhere to prudent use of the hard-earned taxpayers’ resources.

After all, she recently pointed out, the law is clear that pending bills form a first charge on the Consolidated Fund and therefore the 15 counties cited with Sh18 billion supplier and contractor debt are in breach.

She shared this uncompromising position when she appeared before the National Assembly’s Committee on Finance and National Planning for vetting after being nominated by President Uhuru Kenyatta for the position of the Controller of Budget (CoB).

It is therefore not surprising that she has elected that her immediate task following her swearing into office last week is to investigate why 15 county governments have defaulted of their bills, forcing the National Treasury to request Parliament to stop cash transfers to the devolved units.

Dr Nyakang’o, by all appearance is equal the task before her, having started her public service career at the defunct office of the Controller and Auditor-General as a senior auditor. She has a rich background in managing finances in both public and private enterprises spanning over 32 years.

As the CoB, she is in charge of authorising withdrawals from the Consolidated Fund and managing devolved units' expenditure.

Her tenacity will perhaps be most visibly tested in how she manages counties’ expenditure, particularly sitting and travel allowances earned by ward representatives who are fond of exceeding set limits.

This even as county bosses decry inability to get things done because of limited and delayed exchequer releases.

Just the other day, Council of Governors (CoG) chairman and Kakamega governor Wycliffe Oparanya claimed county governments were unable to pay pending bills because the National Treasury was not releasing money to the devolved units as per the law.

Already, Mr Oparanya is in court over the Treasury’s decision to withhold funds for counties with pending bills.

The CoG has sued the Treasury, CoB and Attorney-General seeking orders compelling release of the funds.

The three offices have been accused of flouting Article 219 of the Constitution that directs them to release funds in a timely manner, not later than the 15th day of every month.

But Dr Nyakang’o said that it was not as simple like Mr Oparanya and group would like to think.

“The Constitution allows the National Treasury to withhold funding to institutions that do not comply with the law,” she told the vetting panel chaired by Kipkelion East MP Joseph Limo.

The stoppage of funds to defaulting counties was a good move “since it will encourage prudent use of resources”, she said.

And to ensure that counties are fiscally disciplined, Dr Nyakang’o is already talking about pursuing sweeping reforms.

Her vision is to see counties initiate a development project and see it through to completion before starting the next.

“As the new CoB, I will ensure that there is adequate capacity building for institutions to ensure completion of one project before embarking on the next and settle bills as soon as they receive invoices,” Dr Nyakang’o told Parliament.

She aims to put a stop to off-book projects funded by taxpayers at the expense of budgeted items.

“We need to build capacity on budgetary controls. All releases of funds must be related to work plans. But requests are made on plans that are not budgeted for in the first place. Budgeted plans are then left out, hence pending bills,” Dr Nyakang’o said.

It is not only the counties that have been wantonly disregarding the rules to push through the agendas. Dr Nyakang’o reckons that the National Treasury is guilty too and it is time parliament puts a stop to the practice that has repercussions of the national economy.

During her vetting MPs were particularly interested in her views on the practice where Parliament processes an annual national budget and within months into its execution the House is bombarded with supplementary budgets seeking more cash.

“Any supplementary budget that does not factor items that were envisaged in the Medium Term Expenditure Framework (MTEF) and the approved budget should be rejected unless they are of emergency in nature,” she told MPs.

She said there is need for the Treasury to always have accurate budget figures arrived at through a robust research process.

“Perhaps realistic figures (budget estimates) are given but within National Treasury, some people don’t want to say there is a big gap to fill and this has led to situation where we have to plug these holes with borrowings. This is not the best way to handle national revenues,” she said.

Dr Nyakang’o promised reforms at the office of the CoB to ensure it is strengthened to remove the feeling that the Treasury is overbearing on it.

“The CoB is an independent office and works according to the law and the Treasury should not be the one deciding what should happen,” she said.

The 60-year-old, who succeeded Ms Agnes Odhiambo, is married to David Nyakang’o. It remains to be seen whether she will follow in her predecessor’s footsteps on the calls for the taxman to collect revenues on behalf of counties that have perennially fallen short of their targets since 2013.

Born in Nyamira County, Dr Nyakang’o holds a PhD in Business Administration, a Masters of Business Administration in Strategic Management and a Bachelor of Commerce (Accounting).