State agencies owe suppliers Sh37bn in dubious bills - CS Yatani

The Presidency, Parliament, IEBC and the National Police Service are some of the institutions that owe suppliers Sh37 billion contested by the Treasury.

The electoral agency owes suppliers Sh3.9 billion, the Presidency Sh42 million while the National Police Service Service has Sh130 million unverified pending bills. 

The Treasury has warned that it will not clear the pending bills unless the officials involved provide supporting documents.

The questionable bills form 66 per cent of the total bills across the 1,140 government entities. 

Finance Cabinet Secretary Ukur Yatani said in a letter dated December 5 that the government owes suppliers Sh56 billion, but will only pay Sh19 billion because of multiple audit queries.

“The contested bill of Sh42 million by the Presidency has been forwarded to pending bills closing committee,” Yatani said in the letter.

Yatani committed to paying the verified Sh204 million owed by the Presidency in the third quarter in the letter addressed to all accounting officers, ministries, agencies, independent offices, state departments, and commissions.

The letter also copied to the Head of Public Service Joseph Kinyua showed that the Presidency has already paid Sh385 million of the verified pending bills.

“You are required to review and confirm the status of your pending bills to the National Assembly in writing latest December 6, 2019,” Yatani said.

The Correctional Services department failed to account for Sh6.2 billion pending bills, with Treasury committing to pay only Sh64 million alone.

Treasury dismissed Sh3.9 billion IEBC pending bills unless they provide documents to support the Sh3.8 billion contested.

The Crop Development department could not provide documents to support its Sh8 billion pending bills.

“Balance payable includes Sh3.96 billion validated bills for millers and merchants. Bills pending further verification amount to Sh8.38 billion relating to the National Cereals Produce board fertiliser subsidy programme,” the CS said.

The Devolution department failed to provide supporting documents on the Sh3.4 pending bills, which includes Sh2.9 billion for various counties.

Treasury will not pay Sh130 million owed to suppliers by the National Police Service due to a lack of supporting documents.

They will only pay Sh93 million of the remaining Sh222 million owed to suppliers before November 11.

The Sorts department failed to account for the Sh300 million out of the Sh565 million pending bills.

“The Sports Department has requested additional Sh46 million to clear pending bills at the headquarters,” the Treasury said.

Treasury could not verify Sh57 million owed to suppliers by the State Department for Industrialisation.

Ukur said the office of the Auditor General, IPOA, Commission of Administrative Justice, Public Service Commission, Commission of Revenue Allocation and Witness Protection Agency have cleared the bills.

Others are the National Intelligence Service and the Department for Development of the ASAL. 

“Pending bills require verification and further analysis,” Yatani said.

The CS demanded each accounting officer to clear all valid pending bills as the first charge from during the Financial year 2019/2020 budgetary allocation before entering into any new commitments.

“The payments should be made immediately or not later than November 30, 2019,” Yatani said.