Traders stare at Sh1bn loss in tussle over Laikipia pending bills

Contractors and suppliers who did business with the Laikipia County Government risk losing Sh1 billion after the devolved unit rejected the bills.

This emerged after the administration that is led by Governor Joshua Irungu said that only Sh1.2 billion out of the Sh2.2 billion debt inherited from the previous regime will be honoured.

A report by Auditor-General Nancy Gathugu for the 2019-2020 financial year fingered the county government for having pending bills that have been outstanding as far back as 2015-2016.

Appearing before the Senate County Public Accounts Committee yesterday, Governor Irungu said that, after assuming office last year, he established a County Pending Bills Committee, which flagged pending bills amounting to Sh1 billion as ineligible.

He added that even an earlier audit by the Office of the Auditor-General put the eligible pending bills at Sh822 million.

“I inherited a pending bills debt worth Sh2.2 billion from the previous government but a report of the committee only found Sh1.2 billion as eligible to be paid. I will only pay those ones,” he said.

Read: Counties on the spot over Sh65.7bn statutory dues

He explained that, when he left office in 2017, the pending bills were less than Sh400 million but that has since ballooned to Sh2.2 billion in only five years.

Proper documentation

He said it will be difficult for him to pay for work that does not have proper documentation or that is incomplete.

“I am ready to pay the eligible pending bills, but the other ones will have to wait as their documentation must be verified before any payment is done,” he said. The governor observed that, apart from incomplete documentation, other issues such as delays in the completion of projects, failure by county governments to meet their own-source revenue targets and delays by the National Treasury to release money allocated to counties as equitable share of revenue is fuelling the pending bills problem.

Committee Chairman Senator Moses Kajwang’, however, said a contractor or supplier should not suffer because of mishandling of paperwork by officers, adding, most of the time, the contractors or suppliers have no problems in cases of ineligible pending bills.

“Contractors cannot do it alone. It is a long chain to have ineligible pending bills of Sh1 billion. Let no one suffer because of a change of administration,” he said.

The Homa Bay senator said while forging claims is criminal, hardly any governor has taken action against traders who make illegitimate claims by forwarding them to the Ethics and Anti-Corruption Commission for investigation and prosecution.

“We always see new governors coming up with verification committees and saying huge amounts will not be paid but no action is taken on those who made the illegitimate claims,” said Mr Kajwang.

“It is not enough to just say it is ineligible but tell us the measures taken to bring this problem to an end,” he added.

Read: Probe all pending bills

Mr Kajwang’ said the law requires pending bills to be the first charge in any budget and counties should “stop the circus surrounding payment” of the debts.

“Payment of pending bills is not a favour a governor is doing. There are people waiting to be paid while wakubwa (top officials) are setting up one committee after another. We must discuss how we are going to end this circus and break the cycle,” he said.

However, Governor Irungu said he has been paying Sh40 million every month, with Sh478.9 million settled as of April 20 and another Sh60 million set to be cleared before the current financial year ends.

“There is more than meets the eye in the issue of this pending bill. Some do business today and are paid tomorrow but for others, they have to part with something small to get paid,” said Tharaka Nithi Senator Mwenda Gataya.

Nyandarua Senator John Methu said money owed to legitimate traders who offered services to the county government should be promptly paid.

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