County donations to Council of Governors illegal, Senate committee says

Mombasa Governor Hassan Joho during a past session of the Senate County Public Accounts and Investments Committee. The team has questioned the county’s decision to contribute funds to the governors’ council. PHOTO | FILE| NATION MEDIA GROUP

What you need to know:

  • The County Public Accounts and Investments Committee declared illegal millions of shillings counties are remitting to the council.
  • In his report, Auditor-General Edward Ouko said Mombasa County paid Sh24.9 million to the council during the year under review.
  • The Treasury directed accounting officers in the counties to open and operate bank accounts only in the Central Bank of Kenya.

Mombasa Governor Hassan Joho has said contributions made by counties to the Council of Governors are key to keep it running.

Mr Joho defended his county's Sh24.9 million contribution to the council during a meeting with a Senate committee over the expenditure and revenue accounts for the 2014/15 financial year.

The County Public Accounts and Investments Committee, chaired by Senator Moses Kajwang (Homa Bay), declared illegal millions of shillings counties are remitting to the council and demanded the money be refunded to the counties.

The committee said it will meet the council’s chairman, Mr Josephat Nanok, to find out why governors continue remitting funds without the necessary legal provisions. “The council needs to reimburse all the money it has collected from the 47 counties for the last six years since it is against the law,” said the chairman.

FUND THE COUNCIL

Mr Kajwang said there is no law that compels the counties to channel part of the funds they receive to CoG, insisting that it is the mandate of the national government to fund the council.

In his report, Auditor-General Edward Ouko said Mombasa County paid Sh24.9 million to the council during the year under review. Mr Ouko questioned the county's decision to fund the council, whose budget is fully funded by the Treasury.

But Mr Joho defended the contribution, saying: “The council is up and running because of the contributions we made as pioneer governors. Without the money we contribute, the council would be dead. We agreed as governors to remit contributions to the council each quarter and we have an agreement to show the same. We needed a strong institution such as CoG to defend the counties."

FINANCIAL OBLIGATIONS

However, members of the committee were not satisfied with the explanation, insisting the duty of funding the council is by law vested in the Treasury. “The national government must fulfil its financial obligations including funding independent institutions such as the CoG as required by the law,” said Ms Millicent Omanga (nominated).

Other committee members present were Ledama Olekina (Narok), Sam Ongeri (Kisii) and Mohamed Faki (Mombasa).

The committee further questioned the governor on why his administration still operates 22 accounts in various commercial banks, inherited from the defunct local authority, when it was a requirement that they should be closed.

INHERITED DEBTS

The Treasury directed accounting officers in the counties to open and operate bank accounts only in the Central Bank of Kenya.

Mr Joho blamed the Transition Authority, saying the debts they inherited from the defunct local authorities remain a major problem. He told the committee that auctioneers were after the county. “We still operate several revenue bank accounts to make it easier for us to make payments. The funds collected still go to the main revenue account," he said.