Nakuru County government has commenced the processing and payment of Sh1.5 billion in pending bills out of the Sh3.5 billion it owes suppliers and contractors.
Governor Susan Kihika said an audit will be done, including verification of construction works and goods and services supplied to the county, to ensure only genuine suppliers and contractors are paid.
She clarified that contractors and suppliers who have no sufficient documents to support their claims will be deemed to have engaged in corruption or were awarded tenders in circumstances that violated procurement laws and the Public Finance Management Act.
“All pending bills must bear crucial records such as engineers’ reports and certificates, project inspection reports, and joint measurements, among others,” stated the governor.
While voicing her government’s commitment to meeting all its obligations with regard to pending bills, Kihika warned that her administration will not entertain cases of highly inflated bills, fictitious deliveries, or conflicts of interest in the payment process.
The governor said her government inherited in excess of Sh3.5 billion in pending bills and admitted that her administration had to take the bold step of its financial obligations despite the cash crunch being experienced across the country.
Kihika, however, assured residents that her administration was putting in place structures that would ensure prudent debt management practices and efficiency in expenditure management to avoid unnecessary debt accumulation.
At the same time, the governor called on contractors who are awarded construction tenders to ensure they deliver quality work, warning that those who do shoddy jobs risk being blacklisted.
“I urge those who have been awarded various contracts to move with speed to ensure their completion. We want serious and honest contractors who meet the expected national standards and specifications,” she added.
While calling on Nakuru residents to report to her office any cases of corruption in the tendering process, Kihika warned that any officers in her government found engaging in corrupt practices would be sacked.
She, however, promised to ensure that qualified local contractors residing in the county would be given first priority when awarding tenders.
According to a report on the medium-term and debt management strategy paper for 2022, the Nakuru County debt is classified into two categories: debts inherited from the defunct local authorities, as compiled by the Transitional Authority, amounting to Sh865.9 million, and the current debts.
The report recommended that the devolved unit invite former clerks and treasurers of the defunct authorities to shed light on the nature, purpose, and status of the inherited debts to ensure the debts are fully authenticated.
Other recommendations included pushing for a waiver of interest and penalties to settle statutory creditors, prudence in the use of the resources, strengthening fiscal discipline, and stepping up revenue collection.
“Some pending bills emanate from shortfalls in local revenue collections that have a significant bearing on the budget framework,” reads part of the report.
Meanwhile, some of the debts date back to the 2013–14 financial year and cut across the regimes of former Governors Kinuthia Mbugua and Lee Kinyanjui and the current leadership.
Under the Public Finance Management Act of 2012, the county government is required to monitor, evaluate, and oversee the management of public finances and economic affairs in addition to managing its public debt and developing a framework for its debt control.
By Esther Mwangi
