Controller of Budget Agnes Odhiambo at a past function. FILE
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Agnes Odhiambo Thursday warned governors that only the county executive can manage the money.
The clamour by Members of County Assembly (MCAs) to manage cash assigned to wards suffered a major setback after the Controller of Budget said she would block such funding.
Agnes Odhiambo Thursday warned governors that only the county executive can manage the money.
Her announcement comes against the backdrop of controversy over constitutionality of MPs’ involvement in Constituency Development Fund.
MCAs like MPs, whose involvement is subject of litigation, are part of the legislature and are supposed to oversee use of funds by the executive at the national and county level.
“I will not release any money to be managed by Members of County Assembly,’’ said Ms Odhiambo during a governors’ conference at Laico Regency Hotel in Nairobi Thursday.
She warned the counties risk losing billions through misuse of money if proper training is not put in place to educate the custodians of the public funds.
“Most of the county executives are not aware of the objectives guiding the Ward Development Fund and its role under the devolved government,’’ said Ms Odhiambo.
“The fund will only be approved if the counties prove clear mechanisms on how to manage the kitty.’’
A website for governors to highlight success of devolution in their counties was launched at the event.
“We won’t disburse the money until loopholes are sealed and this can only be achieved through capacity building,’’ she added.
Apart from demanding bodyguards and offices, MCAs have also sought to manage cash allocated to wards.
Nairobi Governor Evans Kidero signed into law the Nairobi County Ward Development Fund Bill 2013 this year that saw each of the 85 county wards get at least Sh16.5 million for 2013/14 financial year. This would result in direct disbursement equivalent to at least five per cent of all ordinary county revenue every financial year.
Ms Odhiambo’s comments come as concern mounts over capacity and integrity of county management systems.
Ethics and Anti-Corruption Commission said its preliminary assessment of the 47 counties had exposed massive anomalies in staff hiring and tender awards. The agency said that the counties had broken procurement laws and rewarded allies and relatives with jobs.
In the 2013/14 financial year, the government devolved a number of roles and placed assets worth billions of shillings in the hands of county executives. It also disbursed Sh210 billion to the units.
The devolved units that misuse their allocations risk not getting their share next month under a legal provision meant to curb wastage.
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