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Division of Revenue Bill hits snag as Treasury, MPs row over CDF

 

Lawmakers have threatened to frustrate the passage of the Division of Revenue Bill over the late disbursement of CDF cash.

Members of the National Assembly criticised the National Treasury for snubbing calls for timely disbursement of the funds.

The vote on the Bill was deferred on Thursday night after a heated debate that was characterised by chants of “No CDF! No quorum! No business!”

Most of the 290 constituencies have received a paltry Sh16 million out of the allocated Sh137 million for the current financial year.

Arrears of Sh18 billion have dragged from the last fiscal year, with others dating back to 2011.

About Sh15 billion for this financial year is yet to be disbursed, three months to the end of the budget cycle, bringing the total to Sh33 billion.

The Budget Committee and Treasury reached a deal on the disbursement last Wednesday; a truce which members at plenary said was nugatory.

Some claimed budget requests by ministries were also turned down. BAC report showed an unfunded budget of about Sh240 billion.

An amendment to the Supplementary Estimates 1 set aside Sh10 billion for the CDF kitty but members say they want more, arguing the disbursement is not assured.

The Revenue Bill, which has been a cause for controversy since 2013, is considered passed by Parliament if supported by a majority in the National Assembly and the Senate.

If the Bill is shot down at any stage, it cannot be introduced until six months elapse, hence may stage a cash crisis in the 48 governments.

Kimilili MP Didmus Barasa, who led a late-night protest on Thursday, said at the weekend: "We will not act on the Bill unless Treasury wires money to the CDF accounts."

Speaker Justin Muturi said the Executive should read the mood of the House and act fast, lest MPs return the Bill to the Treasury.

“Anybody who cares to listen, and if people have to take the House seriously, should know that the message is loud and clear,” he said.

Muturi said it was regrettable that the end of this financial year is just three months away, and “nobody can explain how the CDF funds for this financial year have not been disbursed to some constituencies.”

“It is a situation that must not be allowed to continue at all,” the Speaker said.  He called on members to consider the importance of the Bill.

Ugunja MP and Public Accounts Committee chairman Opiyo Wandayi saved the Bill from collapse in his call for postponement of the vote.

“The best route is to postpone the vote and allow the National Treasury time to release the funds to the CDF board,” he said.

KMTC Ugunja, a satellite Campus of KMTC Siaya, funded by the Ugunja NG-CDF for Sh31.5 million.
KMTC Ugunja, a satellite Campus of KMTC Siaya, funded by the Ugunja NG-CDF for Sh31.5 million.
Image: CDFC/Ugunja

Parliament cannot enact the Appropriation Act before the Division of Revenue Act.

The Public Finance Management Act provides that estimates of revenue and expenditure that the Treasury submits to the National Assembly are based on the share of revenue as provided for in the Division of Revenue Act.

Without the Act, county governments cannot prepare and adopt their annual budgets and appropriation laws.

The Supreme Court in May 2020 said counties will be allowed 50 per cent of their allocation if there is an impasse over the Bill.

Lawmakers from both sides of the political divide jointly called for timely release of the cash.

Kinoo police post quarters in Kinoo ward built with funds from the Kikuyu NG-CDF under MP Kimani Ichung'wa
Kinoo police post quarters in Kinoo ward built with funds from the Kikuyu NG-CDF under MP Kimani Ichung'wa
Image: CDFC/Kikuyu

Kikuyu MP Kimani Ichung’wa backed the calls for postponement of the vote on the Bill, whose loss has serious ramifications.

Minority Chief Whip Junet Mohamed said: “The issues being raised are very important irrespective of our party affiliations, or where we come from.

“This is about our work at the constituency level. Every member will be held on account of what he has done for the people, not for the government.”

Junet said they wondered why Treasury CS Ukur Yatani cannot explain to MPs what is causing the delay in the disbursement.

“Members are agitated because they have been kept in the dark. We have left it in abeyance so that we negotiate with Treasury; when they release CDF we will pass the Bill,” the Suna East MP said.

MPs may be called for a special sitting to deliberate on the matter, but already some have indicated it would be in vain if the funds are not released.

Garissa Township MP Aden Duale said it was the first time in his 15 years of Parliament that a number of constituencies have not received monies.

Kandara MP Alice Wahome said: “Coming from the Covid-19 situation, it is dire that the minister understands that he cannot continue to conduct business in the manner which he has.”  BY THE STAR

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