logo
ADVERTISEMENT

Garissa contractors welcome Treasury move to release Sh65bn for outstanding bills

Contractors say the county owes them hundreds of millions.

image
by stephen astariko

Realtime19 June 2019 - 10:49
ADVERTISEMENT

In Summary


• DP Ruto says the government will release Sh65 billion to the counties to settle their outstanding bills.

• Contractors appeal to President Kenyatta to intervene and ensure the Sh65 billion is used well.

Abdullahi Ismail and other Garissa contractors at a press conference on Wednesday.

Garissa contractors have urged President Uhuru Kenyatta to ensure only genuine firms get the Sh65 billion to be sent to the counties for clearing outstanding bills.

The county owes them hundreds of millions.

On Tuesday, DP William Ruto said the government was in the final stages of releasing Sh65 billion to the counties to settle their outstanding bills. He spoke during an Intergovernmental Budget and Economic Council meeting.

On Wednesday, the Garissa contractors expressed optimism that they will finally get their cash. They spoke in Garissa town. They were drawn from Hulugho, Ijara, Fafi, Balambala, Lagdera, Dadaab and Garissa subcounties. 

“We're gathered here as legitimate contractors to express our dissatisfaction, disappointments and deep frustrations for nonpayment for projects initiated and done from the financial year 2013-14 to 2018-19,” a statement read by Hamza Mohamed said.

“We fully welcome the latest move but appeal to the head of state to intervene with utmost sincerity and make sure the monies that will be released is used to pay genuine contractors so that, in return, we can pay suppliers across the business chain.” 

Abdullahi Ismail said most of them have become bankrupt after borrowing money to implement projects.

On June 1, Uhuru directed the National Treasury and accounting officers of different ministries in the national and county governments to clear all pending bills with no audit queries. He spoke in Narok during Madaraka Day celebrations. 

But two weeks ago, Garissa Governor Ali Korane said paying contractors by the end of this month "is inconceivable".

“With less than a month left, it's practically impossible to verify the projects and start paying the contractors as directed by the President,” he said.

Korane said his administration inherited Sh4 billion in outstanding bills from the previous administration, which is about 50 per cent of the county's annual budget.

The county chief said the huge bills they inherited could not be justified as there is no infrastructure on the ground to prove that the so-called projects were implemented.

During former Governor Nathif Jama’s tenure, the contractors clashed on several occasions with his administration over nonpayment.

 (Edited by F'Orieny)

ADVERTISEMENT