CDF scandal: Millions lying in bank unused

File | NATION
Kisumu East MP Shakeel Shabir leads his constituents on a tour of the stalled Katunga Health Centre where Sh1 million CDF funds had been spent. The structure was to be demolished and rebuilt.

What you need to know:

  • A third of all MPs may miss out on new tranche for letting cash lie idle

A number of MPs have failed in their jobs to uplift their areas from the Constituency Development Fund. Millions of shillings are lying idle at the Central Bank due to failure by MPs to claim it.

Even as MPs rush to submit project proposals for the remaining second batch in this financial year, others are yet to apply for half their allocation in the last financial year.

Failure to use the last disbursement locks the affected constituencies out of this year’s allocation as outlined in the CDF Act.

Already, the Treasury has released Sh7 billion, half of the kitty for this year.

Inquiries by the Nation also revealed the Constituency Development Fund Board meeting on Wednesday may freeze CDF accounts for three constituencies over corruption allegations.

Those under investigation are Justice minister Mutula Kilonzo’s Mbooni constituency and Dr James Gesami’s West Mugirango constituency.

Planning minister Wycliffe Oparanya on Tuesday named MPs — including Cabinet ministers — who have not asked for 50 per cent of their allocation for the last financial year.

Those who have failed their constituents include Mr Kilonzo, Agriculture minister Sally Kosgei, who is MP for Aldai, and Mr Cyrus Jirongo, MP for Lugari.

Others are assistant minister Calist Mwatela (Mwatate) and MPs Ntoitha Nto’MThiaru (Igembe North), Raphael Letimalo (Samburu East) and Joseph Lekuton (Laisamis).

Fisheries assistant minister Abu Chiaba (Lamu West) Mr Fahim Twaha (Lamu East), Hussein Sasura (Saku), Peter Gitau (Mwea), Clement Wambugu (Mathioya) and Clement Waibara (Gatundu North) have also not applied for their second tranche.

Mr Oparanya said on Tuesday he could not understand why the MPs had not claimed the cash.

“The ministry will continue keeping the money for them since it cannot be returned to the Treasury,” he said, adding: “I really can’t tell why some of my colleagues don’t seem uncomfortable that money supposed to be used for development is lying unused.”

By Tuesday, 72 MPs — just over a third of the elected House membership — were yet to apply for the second portion of the allocation for this financial year.

Those who have not applied hail from the Rift Valley (19), Central (18), Nyanza (11) and Eastern (eight).

Mr Oparanya accused MPs of complacency and negligence in the management of development cash.

He also blamed government officials, especially technical officers, for abetting corruption in the use of CDF money. The minister said more officers were required to monitor and evaluate the projects to ensure accountability.

According to the Constituency Development Fund Board, those constituencies with a balance of more than Sh10 million in their accounts will not receive more funds.

The minister said that some constituencies — Baringo North (William Cheptumo), Naivasha (John Mututho), Kasarani (Elizabeth Ongoro), Bomachoge (Simon Ogari) and Subukia (Nelson Gaichuhie) — have not received the full allocations for last financial year because of unanswered audit queries over some projects.

But Mr Gaichuhie accused the board of withholding Sh27 million for projects such as Gitura and Forest Hill secondary schools, Mahianyu Bridge and Arash bridge.

He said several water projects had stalled because of the delay by the Board in releasing the second disbursement.

However, the Nation was informed that the Subukia CDF account has more than Sh10 million.

Bishop Wanjiru confirmed she had not asked for the cash awaiting completion of several projects.

“CDF money is not given out simply because there is money. They consider proposals and we have not given any,” said Bishop Wanjiru.

The assistant minister said her Starehe constituency had not exhausted its allocation.