There’s need to overhaul the way devolved funds are run

Revelations by researchers over the years that millions of devolved funds have been stolen are a pointer to two facts: that those under whose care such funds are placed are cynical plunderers, and that there is a dearth of capacity to manage such funds.

The Local Authorities Transfer Fund (Latf) under the local authorities has always been misappropriated by councillors in cahoots with chief officers in literally all local authorities. That this theft of Laft hardly raises dust among the officials and non-official public watchdogs can only be explained by their comparative insignificance.

The Constituencies Development Fund (CDF) is a different kettle of fish. Right from the beginning in 2003, its critics averred that it was wrong to place development funds under the legislative arm because the Legislature is the people’s watchdog against the Executive over, inter alia, the use of public resources.

The moment MPs become implementers of development, they fall victim to the trap of conflict of interest. Second, it was opined that CDF was conceived and operationalised with little thought to the question of capacity. Third, it was feared that MPs, as the patrons, would use CDF as a campaign tool.

Over the years, critics have been vindicated. The CDF’s National Management Board, is an arm of Parliament. There is something wrong with this arrangement. A report by the National Anti-corruption Campaign Steering Committee laments that “the CDF National Management Board (NMB)… is entirely subject to Parliament in its operations, and effectively serves as a rubber stamp of Parliament. Under the present CDF law the board is ineffective in enforcing compliance, enforcing fiscal discipline and, consequently, CDF operations are in disarray.”

The import of this verdict is that MPs are watchdogs over themselves when it comes to CDF. This explains why, report after report on how individual MPs and their cronies have abused CDF over the years are gathering dust in shelves. The incestuous relationship between MPs and CDF board is captured by a recent advertiser’s announcement by the latter defending MPs against criticism by the National Taxpayers Association (NTA) in the initiative’s latest report on CDF management. By defending MPs, NMB has confirmed all what is wrong with one being a judge in their own case.

Furthermore very few constituencies are yet to demonstrate satisfactory use of monies allocated to them annually. Many constituencies have huge chunks of the annual CDF allocations returned to the Treasury, as wananchi languish in want.
While it is inhuman to take advantage of opportunities for selfish ends, MPs go ahead and advance their political interests through CDF. Many have gone overboard. Aside from having their brothers, cousins and boy or girlfriends in managing CDF, MPs do not seem to draw a line between CDF as public funds and private resources — impunity at its worst.

It is a poorly guarded secret that MPs use proxy companies to carry out CDF projects then pay themselves. Others charge handsome kickbacks from contractors and suppliers. In short, MPs, who are supposed to stand guard against the embezzlement of public resources, are, through CDF, running with the hare and hunting with the hounds. This concern is captured by a publication by the Youth Agenda titled, “CDF: For Development or Campaigns?” published in 2003.

The other tragedy is that constituencies are now littered with white elephants due — partly — to what policy specialists call development without planning. But the main cause for the myriad CDF white elephants is the politics of parochialism; MPs shun development projects initiated by their predecessors whom they view as their opponents. So, billions of taxpayers’ cash are being sunk into the abyss of legislative myopia.

Under the new Kenya just about to be unveiled by the new constitution, there is need to rethink CDF and other devolved funds to arrest the prevailing arrant waste of public wealth. The surest way to achieve this goal is to strip MPs and councillors of the mandate of implementing public-funded development projects and push them back to where they belong: the watchdog corner. Devolved funds should be run by the Executive arm of government at all levels of devolution.

Mwalulu is the former MP for Taveta (jmwalulu@hotmail.com)