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Governors have not received Sh51.76 billion in arrears, being the equitable share of the revenue for the last two months.

The county chiefs have said the situation is dire and the Treasury had deliberately continued to withhold the funds making employees go without salaries and affecting the purchase of medical supplies.

Council of Governors chairperson Anne Waiguru said out of the funds, Sh20.31 billion was owed to 27 counties as allocation for August.

The remaining Sh31.45 billion, she says was the September allocation for the 47 counties.

“It is unfortunate that the third generation of counties has started on a bleak note due to lack of resources. We wish to inform the Kenyans that the Constitution and PFM Act requires the Treasury to disburse the funds on the 15th day of every month without delay,” she said.

“While we are cognizant that we are in a new political dispensation, as counties we are duty bound to ensure smooth and interrupted service delivery.” 

The Kirinyaga governor said they are concerned that, despite being in the transition period, the current financial situation was devastating.

Waiguru said the outstanding disbursement for October was Sh29.6 billion.

“The delays and unpredictable disbursements are a recipe for the accruing pending bills and negatively impacts service delivery,” she said.

Waiguru spoke Thursday during a CoG meeting at their offices.

The governors warned that several casuals at the counties risk not earning their pending salaries for subsequent months as they are not on the payrolls as required.

The directive by the Controller of Budget that all employees be paid through the Unified Human Resource Information System, they said, will see many locked out.

To resolve the issue, the council vowed to furnish the office of the CoB with the required information to facilitate payment.

The county chiefs also criticised the government's failure to finalise the unbundling, costing and transfer of some functions to the counties.

Through the Intergovernmental Budget and Economic Council, the council and the intergovernmental relations committee will lobby to facilitate the process.

They also called for the anchoring of the CoG secretariat into law, to support intergovernmental relations and ensure counties are fully supported to undertake their mandates.

“We note that in the new government structure, devolution is not part of the ministries as such modalities for funding the CoG is affected. We, therefore, ask the President to direct the Treasury to grant the council a vote for direct funding,” Waiguru said. - Felix Kipkemoi, The Star Edited by Kiilu Damaris

 

KAMPALA, Sept. 30 (Xinhua) -- The use of digital payment systems in Uganda has grown considerably both for mobile money service providers and banks for the year that ended in June, a new report by the country's central bank said Friday.

The demand for digital payment services was mainly driven by a favorable policy environment, evolving consumer behavior, and recovery in economic activity, said the latest Quarterly Financial Stability Review, issued by the Bank of Uganda (BOU).

The value of internet and mobile banking fund transfers rose significantly by 98.9 percent and 164.5 percent respectively in the year to June, compared to the previous year, BOU said, adding that the value of mobile money transactions rose considerably by 37.6 percent.

"The BOU continues to implement regulatory and supervisory measures to foster safe operation and usage of digital financial channels, which is key to deepening financial inclusion," the report said. - Xinhua

 

Six officials from Kabale district local government have been released on police bond after refunding part of the missing Shs 289 million meant for the Parish Development Model (PDM) that they allegedly embezzled.

Edmund Ntimba, the former Kabale chief administrative officer, Christopher Namara, the district community development officer, Beda Mwebesa, the district production and marketing officer, and district planner, Boaz Kakuru were arrested on Friday last week.

Others arrested were Erasmus Natumanya, the Kabale district commercial officer, and chief finance officer, Julius Mujuni. They are accused of failing to account for the funds during an impromptu meeting organized by Joverine Kaliisa Kyomukama, the deputy national coordinator PDM in the ministry of Local Government.  

In February, the government disbursed Shs 400 million to the Kabale district account meant for parish Saccos in sub-counties. The ministry of Finance ordered district officials not to withdraw the money until the government issues fresh guidelines for proper use.

However, the officials only disbursed Shs 111 million. On Monday, civil servants in the district started a drive of mobilizing funds to bail out their colleagues. Area MPs also contributed and raised Shs 120 million.

Yesterday Tuesday, Shs 120 million was deposited on Kabale district account number 01983501007176 in dfcu bank. The suspects committed to refunding the balance at the beginning of next month.

The suspects were later released on police bond. Elly Maate, the Kigezi regional police spokesperson said that the release of the officials was reached after a meeting with Kaliisa.

"They have agreed they can be bonded as they sort themselves out. Police bond is just an agreement between a suspect and the state. It is a temporary release from custody as inquiries continue and still the outcome will determine the way forward. So that is why they are being released on police bond," said Maate.

Kaliisa said that they opted to have the suspects out of detention to allow them to recover the funds. She however said that investigations into the case will continue.

"They accepted that a mistake was done and agreed to reconnect it by paying. As of yesterday, they’d paid Shs 120 million, the rest of the balance will be paid in 5 days. We have committed them and we all agreed, the PS [permanent secretary] and the minister and said that our interest is to recover the money as the law takes its course," said Kaliisa.

PDM is a government strategy or approach for organizing and delivering public and private sector interventions for wealth creation and employment generation at the parish level as the lowest economic planning unit. This is aimed at ensuring support for more Ugandans to increase demand for goods and services. - URN/The Observer

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