Nairobi Deputy Governor Anne Kananu Mwenda led the Nairobi City County Government (NCCG) in handing over pending bills files worth Ksh1.3B to NMS Director General Mohammed Badi.
Kananu stated that the decision was arrived at after the office of the Auditor General asked the Treasury to undertake a special audit in line with section 96(3) of the Public Finance Management.
The NMG and Nairobi County Government formed a committee to look into contracts and files of accumulated pending bills for 2018/2019 financial year following the recommendation.
IEBC Nairobi County returning officer Joseph Eroo hands clearance certificate to Nairobi County Deputy Governor nominee Anne Kananu Mwenda for appointment.
Pending bills accumulation has raised concerns before and has put suppliers on the edge. This is because the county procures goods and services from different entities and the payment is honoured as per terms of the contract.Time and again the county government has found itself facing cash deficit therefore unable to honour the contracts.
Some of the difficulties the county faced financially include delayed transfer of funds from the national government, Senate stalemate on revenue sharing formulas, disputed payments and pending bills inherited from previous administrators.
Late Settlement of debts attracts penalties and interest for suppliers which leads to county governments losing credibility to contractors and suppliers .
Pending Billls also exacerbate liquidity constraints on suppliers which has a ripple effect that has contributed to massive job losses.
Kananu urged the NMS to make pending bills approval the first item of expenditure on their budget and vowed to task her team to adopt a phased approach to settling billls in installments in order to restore liquidity for business owners.
”Today we are happy to handover the pending bills files worth Ksh 1.3B over to NMS for payment.I will task my finance team to adopt a phased approach to settling outstanding arrears,even if it means settling bills in installments in certain circumstances in order to restore liquidity to business owners.Top of my agenda is fostering a new spirit of co-operation,collaboration,partnership and mutual respect among all organs of Government,the County Assembly,Nairobi City Staff,key shareholders and other partners,” Ann Kananu.
The supremacy battles between NMS Director General Mohammed Badi and ex-governor Mike Sonko were so vicious to a point where service delivery in the county was threatened.
On 15/9/20 CS Ukur Yatani declined a request from Mr Badi to release payment money for 6,800 county staff citing lack of legal framework as the reason and that the funds could be remitted to NCCG revenue fund Account and not to NMS.
Therefore the step taken by Ann Kananu today will go a long way in ensuring that the unification of the two bodies is achieved soon.
Former Nairobi Governor Mike Sonko during his impeachment hearing in December 2020.