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MPs clash with Githae over Budget

The Executive has run into a financial muddle with Parliament after the Treasury ignored changes to the Budget proposed by the Budget Committee.

The dispute came to the fore on Wednesday after the Treasury sought to withdraw Sh425 billion from the Consolidated Fund without following provisions of the Constitution.

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The Budget committee has vowed to oppose the withdrawal of the funds until Parliament approves the Appropriations Bill, 2012, in line with Article 221 (6) of the Constitution.

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“We are perturbed that the minister has again trampled on the Constitution with impunity,” said Budget committee member John Mbadi.

Finance minister Njeru Githae was accused of attempting to intimidate MPs not to alter his Budget estimates on grounds that they stood to lose if proposals by the committee were effected.

“We have two letters, one dated June 18 and another June 20 (yesterday) written to Budget (committee) chairman and the clerk that if we alter the Budget MPs will suffer in areas of their mileage and Constituency Development Fund,” said Mr Mbadi. In the letters Mr Githae said effecting budget cuts would affect critical areas of service delivery by government.

He said the cuts on both local and foreign travel would affect MPs mileage.

Mr Githae also told committee chairman Elias Mbau in the letter dated June 18 that making changes on the capital grants votes would cause a reduction in CDF.

“This is meant to intimidate us and let Treasury mandarins get away with a constitutional illegality.

If let to pass, all the work we did in going round to seek Kenyans’ views on the Budget would come to nought.

It means that the reallocations we made to critical areas would not be effected,” Mr Mbau said.

Mr Githae yesterday ambushed the committee by tabling the Vote on Account 2012/13 seeking to withdraw Sh424. 7 billion, representing half of the total recurrent and development expenditure.

He issued a notice of motion seeking approval of the funds to meet expenditure for the year starting on July 1, until the House approves the Appropriation Bill.

A Vote on Account is an instrument that government has always used to withdraw one half of the total Budget to finance governments services until such time that Parliament enacts necessary laws to authorise withdrawals from the consolidated fund services.

In the past, the President had to signify his consent on the motion for the House to approve the request but the Constitution under Articles 221 has changed this.

Article 221 (6) states that “when the estimates of national government expenditure, and the estimates of expenditure for National Assembly and the Judiciary have been approved by Parliament, they shall be included in the Appropriation Bill which shall be introduced into the National Assembly to authorise the withdrawal from the Consolidated Fund.”

The committee termed the action by the Treasury as “unconstitutional” given that the courts had ruled against the practice last year.

It asked Speaker Kenneth Marende not to allow any motion on the Vote on Account until the Treasury presents to Parliament for approval the revised Budget estimates for the coming fiscal year, taking into account the views of the public as approved by the House and contained in the Budget committee report.

The committee said the minister has no option but to table the revised estimates as approved by Parliament on June 6, 2012.

However, Mr Githae could have relied on provisions of Article 222 of the Constitution which allows the withdrawal from the consolidated fund an amount not exceeding one-half of the amount in the estimates of expenditure for that year that have been tabled in the National Assembly.

The committee said both the courts, through a petition by civil society groups and the Speaker had ruled against the practice and warned last year that the Treasury follows the Constitution.

Deputy Speaker Farah Maalim will rule on the matter this afternoon.

The dispute has parallels to the stalemate that saw MPs refuse to pass the Finance Bill until their concerns over interest rates and the running of the Central Bank was addressed.

The Bill was finally passed last month, five months after the stipulated deadline of December 31.

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