Fate of Sh143bn Transition Authority assets uncertain
What you need to know:
- The authority, whose responsibility has been to oversee the smooth transfer of functions to counties, is now the custodian of all the assets that are yet to be unbundled.
- Besides the assets, the control of the Sh5 billion casino and betting industry, the classification of cities and other urban areas as well as the setting up of the county pension scheme are yet to be done.
- At the centre of controversy, according to TA Chairman Kinuthia Wamwangi, is the reluctance by governors to inherit the assets alongside the liabilities from the defunct local authorities.
The fate of Sh143 billion property of the defunct local authorities hangs in the balance as the term of the Transition Authority ends next month.
The authority, whose responsibility has been to oversee the smooth transfer of functions to counties, is now the custodian of all the assets that are yet to be unbundled.
Besides the assets, the control of the Sh5 billion casino and betting industry, the classification of cities and other urban areas as well as the setting up of the county pension scheme are yet to be done.
At the centre of controversy, according to TA Chairman Kinuthia Wamwangi, is the reluctance by governors to inherit the assets alongside the liabilities from the defunct local authorities.
“It is insincere of governors to want to take over the assets from the defunct authorities but run away from the debts.
Only the Transition Authority can verify and determine the ownership of the assets being contested for by county governments and other institutions,” said Mr Wamwangi on Thursday.
“The transfer of assets and liabilities, which is a key component of devolution, is still outstanding.
The two levels of government need an impartial umpire to midwife this process,” said Mr Wamwangi.
MULTI-BILLION SHILLING ASSETS
A report by the TA shows that the defunct councils left behind Sh143 billion worth of assets, including over 7,000 vehicles as well as 40,815 parcels of land.
Liabilities, on the other hand, amount to Sh62 billion as of March 2013.
The liabilities yet to be transferred include payments to suppliers and servicing of bank loans.
According to the law, the TA’s term is supposed to end in March, a move the authority has said will hamper the full transfer of functions stipulated in the Constitution.
The request by the authority for an extension of its term, which has since been forwarded to the Senate for debate, has, however, faced opposition from governors, who termed it a ploy to delay the transfer of functions to counties.
“The TA does not deserve any extension of its term,” said Council of Governors’ Finance Committee Chairman Wycliffe Oparanya.
