Treasury on the spot over Bills on cash for counties

The Budget committee has accused the Treasury of orchestrating a financial crisis when county governments come into force by failing to table keys Bills.

The committee said delays by Finance Minister Njeru Githae to present to the House the Division of Revenue Bill and the County Allocation of Revenue Bill would create a financial crunch, rendering counties dysfunctional.

The MPs criticised the Treasury for failing to table for approval the Public Finance Management Act 2012 regulations, the Budget Policy Statement, the Pre-election Report and the Supplementary Estimates as provided for in the Constitution.

“We are staring at a looming crisis. The minister is courting trouble and failure by this House to approve the required legislation before it is dissolved will amount to violation of the Constitution and lead to a crisis at the counties come March 2013,” Chairman Elias Mbau told a news conference at Parliament buildings.

READ: MPs express fears over delay of county bills

The Division of Revenue and County Allocation of Revenue Bills are crucial to allow the 47 counties to access resources for delivery of services in the four months to the end of this financial year - March to June 2013.

Mr Mbau said the Controller of Budget could not, under the Constitution, approve any penny to the counties without the Bills.

Mr Githae on Wednesday published a transitional law seeking to empower the Controller of Budget withdraw money on behalf of the counties for the period between March and June next year.

The committee demanded the immediate tabling of the Supplementary Budget in line with Article 223, which requires Parliamentary approval for any spending that had not been approved within two months to the end of financial year.

“We are aware that the government consented new expenditure, including higher salaries for various public servants after the current budget had been approved by Parliament in June this year. This in itself is a violation of the provisions of Chapter 12 regarding management of public resources,” the committee noted.

Garsen MP Danson Mungatana faulted the drafting of the Constitution stating that terms of members of Parliament should have been staggered to ensure continued check on the Executive.

“The Treasury is exhibiting impunity of the highest order because they know that Parliament is due for dissolution and nobody will keep them in check until a new House is inaugurated,” Mungatana said.

“The 11th Parliament needs to come up with a beautiful Constitutional amendment to ensure that we have a continual Parliament. That is when the Executive and especially Treasury will be kept in check,” he added.

Mr Mbau accused the Treasury officials of perfecting the art of withholding budgetary documents in order to ambush MPs with voluminous documents for approval on the final day.

“I suspect they will bring the huge documents one afternoon where they know what is inside. The mandarins will want to hide many things from scrutiny. They want to ensure members do not have sufficient time to scrutinise them,” Mr Mbau said.

He also accused the Executive of flouting the provisions of the Public Finance Management Act 2012, which requires that Treasury publish a pre-election economic and fiscal update at most 120 days before the Election date.

“This is an important report indicating all direct and indirect expenses related to Election. Kenyans may not know the status of government coffers if this paper is not laid,” he said.

The committee added that the delay in tabling the Budget Policy Statement (BPS), which sets out the broad strategic priorities and policy goals that will guide the government in preparing their budget, is mischievous.

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“This document is supposed to be tabled for discussions and adoption with or without amendments within 14 days after February 15 every financial year. If they bring BPS now, when will departmental committees engage on policy and programmes of line ministries given the calendar of this House?” Mr Mbau asked.