Meru govt owes suppliers Sh1.3bn

A section of MCAs during a session at the Meru County Assembly on July 19 2016. The county owes contractors and suppliers more than Sh1.3 billion. PHOTO | PHOEBE OKALL | NATION MEDIA GROUP

What you need to know:

  • The report indicates that the government has recurrent pending bills amounting to Sh251.6 million as well as commitments and pending bills of Sh1.08 billion under development expenditure.
  • Treasury department had the highest amount of unpaid recurrent bills at Sh177 million followed by health (Sh60 million), and the Governor’s office (Sh25 million).
  • Contributing to the debate, Municipality MCA Kiome Rimbere expressed concern that businesses were being hurt by delays in payment.

The Meru County government owed contractors and suppliers more than Sh1.3 billion by the close of the last financial year.

According to a report on pending bills that was debated by MCAs Wednesday, the finance executive said the bills will be paid once the county receives money from the exchequer.

The report indicates that the government has recurrent pending bills amounting to Sh251.6 million as well as commitments and pending bills of Sh1.08 billion under development expenditure.

Treasury department had the highest amount of unpaid recurrent bills at Sh177 million followed by health (Sh60 million), and the Governor’s office (Sh25 million).

Under development expenditure, the transport department owed Sh307.7 million, water (Sh194.7 million), health (Sh125 million), planning (Sh107 million), cooperatives Sh92.9 million, education (Sh80 million), agriculture (Sh76.8 million) and culture (Sh47.2 million).

HURT BY DELAYS

Contributing to the debate, Municipality MCA Kiome Rimbere expressed concern that businesses were being hurt by delays in payment.

Mr Rimbere, who had sought a statement of the pending bills, cited seven hotels that were not paid more than Sh4.7 million by the office of the governor.

“It is difficult to tell how the contractors and suppliers are operating if the county owes them all this money. The bills should be settled immediately the money is available,” he said.

The debate was however deferred for the second time after Speaker Joseph Kaberia gave the MCAs more time to scrutinise the report.

The county also owed Sh1.3 million to two chicken suppliers and more than Sh13 million for supply of goats.

Five consultants were yet to be paid more than Sh45million by the planning department for work done in the 2014/2015 and 2013/2014 financial years.

The department had also not paid more than Sh5 million to four hotels in the 2014/2015 financial year.

The public service and administration department owes more than Sh5.6 million for office rent within Meru Town.

Other notable outstanding Bills include Sh19.9 million for interest on MCA’s loan, Sh60 million for Meru County car loan and mortgage fund and Sh11 million for motor vehicle insurance.

Meru finance executive Jacob Kirera could not be reached to comment on the status of the pending bills since he did not answer calls or reply to messages.