PAC chairperson Moses Kajwang'./FILE
The Senate has halted the payment of Sh11.9 billion in pending bills and directed an immediate probe into potential collusion between the county officers and some contractors in Kilifi county.
The Senate County Public Accounts Committee directed the Controller of Budget to cease any withdrawal of funds for settlement of the bills until the investigations are concluded.
The development came after the county officials and contractors provided contradicting figures, triggering concerns some of the debts could be fictitious.
The directives followed a session in which Kilifi finance chief officer Lawrence Mwonzonga gave conflicting figures on the billions of shillings in outstanding bills.
While the latest Auditor General’s report puts the pending bills at Sh11.9 billion, Mwonzonga told the committee the county had estimated its liabilities at Sh7.5 billion, of which Sh5.1 billion had been verified as legitimate.
He further disclosed the county had set aside Sh3.1 billion in the current financial year to settle the outstanding bills.
“We owe contractors and suppliers Sh7.5 billion. Sh3.1 billion has been set aside to defray accounting payables. The county executive embargoed taking on new projects until the issue of pending bills is addressed,” Mwonzonga said.
However, the Controller of Budget told the committee the county executive had budgeted Sh8.7 billion for pending bills, while the county assembly had approved only Sh3.1 billion, raising questions about the legality of the proposed expenditure.
PAC chairperson Moses Kajwang’ said the conflicting figures pointed to serious financial management problems, warning the county could not commit billions of shillings without a clear and approved payment plan.
“The county government is technically insolvent. There is no way you can budget to pay Sh8.7 billion, yet the county revenue is Sh13 billion,” he said.
“We have directed the Controller of Budget not to approve the withdrawal of funds for accounts payable until they align with the approval of the county assembly.”
The senators were also angered by revelations that some pending bills dating back to 2015, amounting to about Sh500 million, remained unpaid.
Kajwang’ demanded that the county executive provide an accurate breakdown of its liabilities and a clear payment schedule, insisting suppliers who had delivered goods and services should not be left waiting for years.
“We want the county executive to give us the actual figures of what is owed to the contractors and suppliers and a payment plan.”
“There is no way a service provider who offered a service of providing air tickets to officials of the county, the tickets have been availed and up to date, such a person should not be paid,” he said.
The committee further heard allegations that some contractors were demanding full payment for incomplete projects, with county officials suspected of colluding with them.
“We are aware there are crooks inside the county executive who are colluding with the contractors and demanding to be paid for works not done or services not rendered. We are directing the EACC to launch an investigation into an unholy alliance in the county,” Kajwang’ said.
Kilifi MCA Twaher Abdulkarim cited a case involving a contractor who allegedly built an early childhood development classroom at a cost of Sh3 million but had not installed a door while demanding full payment.
Abdulkarim said the county assembly intervened and resolved that the contractor should not be paid until the work was completed.
The committee directed the county executive to verify all pending bills, prepare a workable payment plan and ensure legitimate suppliers and contractors are paid promptly for services rendered and projects completed.
