City assembly grounded after bank accounts frozen

The Nairobi county assembly has been grounded following the freezing of bank accounts by Central Bank of Kenya.

This has seen MCAs and county assembly staff go without salaries and essential services needed for operations for more than a month.

County Assembly Speaker Benson Mutura on Tuesday claimed the stalemate came about following former Clerk Edward Gichana’s refusal to surrender the control of the assembly accounts.

In a letter addressed to CBK Governor Patrick Njoroge, the speaker decries that the actions of the former clerk has brought about misery among the MCAs and the staff.

“We are currently unable to run our operations and are essentially stuck since we cannot pay for anything as the bank has unfairly frozen us out until Gichana physically presents himself before the bank and signs off on the Mandate Forms and surrenders his IB token,” reads the letter dated February 15, 2022.

Last June, an appellate court ordered the then assembly clerk Gichana to vacate office pending the determination of a lawsuit against him.

He went ahead and directed deputy clerk in charge of administration Pauline Akuku to take over his office in an acting capacity.

Gichana also handed over vital documents to Akuku, a move seen as  symbolising her taking over the office.

He was accused of insubordination and breaching of law for purporting to hand over his office.

While stamping authority, Speaker Mutura appointed deputy clerk in charge of legislative services Adah Onyango to occupy the clerk's office in an acting capacity.

When reached for a comment, Gichana rubbished the accusation saying the assembly is on a witch-hunt.

He told the Star that he handed over all the necessities following the court orders and wrote to CBK to notify them on the changes.

"From June until December, the assembly has been receiving salaries. So what has changed last month that they now blame me yet I left eight months ago?" he questioned.

Without giving names, he faulted a few individuals for attempting to interfere with the assembly operations so as to conduct personal   business with the funds.

"The assembly knows what it's doing and its unlawful as I have not interfered with any operations," Gichana added.

Due to the paralysis, Mutura said suppliers have stopped providing services to the county assembly on account of pending bills and the non -payment as they fall due.

Also, MCAs and assembly staff are yet to be paid their January salaries, since the same cannot be processed.

"The assembly has had essential services disconnected, such as internet services critical to the carrying out of virtual plenary sittings and committees,” Mutura added. 

Offices rents for 85 wards due for payment have remained unpaid risking eviction for MCAs as well as imprests for the 85 ward offices which also remain unpaid, greatly undermining operations.

As a result of the paralysis,  Kenya Revenue Authority has already issued a recovery notice and attached assembly accounts and imposed penalties for the non-payment of returns for PAYE for staff and MCAs.

The financial constraints occasioned by frozen accounts has also led to lack of basic commodities in the assembly including toilet papers.

Since June last year, the then acting clerk had no control of the assembly accounts at CBK nor of its finances.

As a result, Speaker Mutura said junior officers who happen to be mandated by holder at various levels, have exercised the accounting control function to the exclusion of the duly appointed acting accounting officer, who is expected to take overall responsibility for the assembly's finances, contrary to the PFM Act.

The assembly says the stalemate can be resolved if the Directorate of Banking holds a meeting with them, adding that there have been issues  since 2019 when the office of the clerk was first taken to court.

Confusion has characterised the occupancy of the clerk’s office since 2019 after the former office holder Jacob Ngwele, and former speaker Beatrice Elachi fell out.

In July 2020, Employment and Labour Relations court judge Maureen Onyango stayed orders on Ngwele as the clerk and gave the assembly 45 days to recruit a clerk.

The assembly’s board declared the vacancy and 11 people were interviewed, including Gichana.

On July 24, Gichana was sworn in as the new clerk but a few days later the court suspended the gazettement of his appointment.

On August 5, Justice Onyango ordered Ngwele to step aside pending the hearing and determination of his case this month.

In November, Justice Onyango ruled that Ngwele’s appointment to the clerk’s office was shrouded in irregularities.

This paved way for Gichana to take over the office as the substantive clerk.

However, last June he was ordered to vacate office pending the determination of a lawsuit against him.

As a result, the assembly is now calling upon the CBK to intervene in this matter and allow them to submit two alternates officers who can intervene and unlock the stalemate in order to run operations.

“We request for your urgent intervention to allow us submit two alternates at a level to or such other interim measures as your office shall deem fit,  in the circumstances to unlock our ability to run our operations,"  reads the letter in part.

-Edited by SKanyara