The Finance committee of the National Assembly has questioned the probity of the equalization fund citing concerns about possible misuse.
In a meeting with the fund board, the Molo MP Kuria Kimani-led team said it was time the projects were reassessed.
"Looking at projects done, does the fund really help," Kimani said.It emerged that the fund is being used to lay cabros, install transformers, build staff houses, library, kitchen renovations, and street lights.
"If you continue to do all manner of projects, will it serve the purpose for which it was formed?" the Molo MP asked.
He also cited some irrigation programs whose amounts varied significantly.There was one that cost Sh2.6 million to do 5 acres and Sh3.6 million to do 10 acres, beggimg the question of whether there was any standard criteria for identifying projects.
“The projects are so diverse that even you allocate the fund for 10 years, it will never make sense,” Kimani said.
Kitui Rural MP David Mboni asked why the fund was implementing projects that can be managed by CDF and some outside its mandate.
Turkana Central MP Ariko Namoit said the board has misreported the status of the projects making MPs doubt the authenticity of the data by the Fund.
"The information presented to the committee is wrong in the first place," Namoit said, adding that the board has ingored the law and is implementing projects that were not envisioned.He said this was perhaps the reason Treasury was reluctant to disburse funds to the Equalization Fund kitty.
Projects should be approved by CRA.
"The board and Cra have diluted the objective of this fund. It was to address the inequalities in Sessional Paper No10 of 1965, not address emerging marginalization issues," the MP said.Fund board chairman Mahboub Mohamed says CRA role in the fund should be reevaluated. “Though appreciated we have an issue. Equalization Fund has no role in identifying beneficiaries and needs of a region.”
He wants the law changed to define CRA roles better.
The chairman further cited challenges with implementation and has pushed for the fund to be given cash directly.
The board chair argued that counties as constituted lack capacity to manage the allocation and that their mode of implementation is wanting.
He asked MPs to consider changing the law to allow direct implementation by relevant government agencies.
The chair decried delays in remittances from the exchequer.
The allocation in books don’t translate to cash, or timely cash disbursement, he said.
"The unpredictable movement of funds has resulted in many audit queries. We have people queueing for pending bills," Mohamed said.But the lawmakers questioned the reliability of the data.
"With the evidence given by members, do you think we should continue with this meeting," Kimani said.
The board said the reports were from counties which are implementing the projects. Zero per cent shows that we have approved a project and yet it has not kicked off.Namoit said, “We need to get the proper project implementation status report to continue with this discussion. They are lying to us.”
