Keep off county cash, MCAs told

The Transition Authority wants to block ward reps from laying their hands on a multi-billion shillings fund for the counties.

TA Chairman Kinuthia Wamwangi has written to governors and the county government speakers cautioning against the enactment of the Ward Development Fund.

If effected, a huge percentage of resources will be under the management of the Members of the County Assemblies (MCAs).

This comes after the Commission on Revenue Allocation (CRA) issued a directive on budget ceilings to restrict spending by MCAs and assemblies following an outcry over wastage of public funds.

(READ: Revealed: County reps who earn the highest perks)

Documents obtained by the Nation indicate that under the new ceilings the total cost for funding new structures under devolved units should not exceed Sh13 billion of the total amount allocated per year for the executives and Sh17 billion for the assemblies.

But in a quick rejoinder, ward representatives resolved to go to the High Court on Tuesday to block CRA from setting budget limits.

(READ: MCAs oppose ceiling on county budgets)

The guidelines also seek to cap the spending on new structures for Nairobi County to Sh1.2 billion, Kiambu Sh953 million, Kakamega Sh46 million, Nakuru Sh855 million and Kisii Sh832 million.

“The role of MCAs is to legislate and not to run county funds. They ought to play an oversight role as provided in the law. Any new fund created should be managed by the executive,” Mr Wamwangi told the Nation.

He said that the authority was surprised to find some ward reps supervising projects contrary to the law.

“We are aware that counties are at various stages of setting up Ward Development Funds for financing projects at the ward level. The establishment of any fund and its administration must comply with all relevant laws,” said Mr Wamwangi in his letter dated July 11.

He said that the law bars MCAs from engaging in implementation of executive functions whether directly or indirectly.

(READ: How MCAs spent millions in sittings)

MIRED IN CONTROVERSY

The passage of Appropriation Bills a number of counties is now mired in controversy. Some governors have rejected a bid by MCAs to allocate more cash to the ward fund.

Makueni, Kirinyaga and Bomet counties are among those whose Appropriation Bills have been rejected by the Controller of Budget, Mrs Agnes Odhiambo, for violating the rules.

In a letter written by CRA Secretary George Ooko warns that development of counties may suffer if money is used haphazardly on programmes of the least priority.

“Please note that budgets should not exceed the recommended ceilings. This will affect service delivery,” Mr Ooko said.

The ceilings have provided a limit of spending by county executives and county assemblies on the newly developed structures that is meant to curb misuse of resources and cut down unnecessary recruitment at the county governments.

“The Office of the Controller of Budget emphasises the need for all county governments to adhere to the advisory provided by CRA, which is in line with Article 201 (d) of the Constitution,” read part of the letter by Mrs Odhiambo.