The war between the embattled Nairobi Governor Mike Sonko and Nairobi Metropolitan Services ( NMS ) Director General Mohammed Badi has stalled the utilisation of Sh127.2 million.
The disputed money was received as a grant from the World Bank and the Danish government after the National Treasury suspended the operating system of the budget sector.
Sonko who appeared before the senate's health committee said that the condition of the grant was to support Level 2 and Level 3 hospitals under the Universal HealthCare projects.
The governor had transferred four functions including health to the NMS in line with Article 187 of the Constitution.
Sonko transferred the functions to the National Government through the NMS in March but supremacy wars later erupted between the governor and Badi resulting to hampered service delivery to Nairobi residents.
Treasury CS Ukur Yatani has refused to release the funds to NMS claiming that move lacks a legal backing.
Sonko tabled a letter by the treasury CS which explained that the funds can only be given to Nairobi County Government through the County Revenue Fund.
The CS cited Section 4(2) of County Allocation of Revenue Act, 2020 which stipulates that each county government allocations shall be made to the respective County Revenue Fund.
“The funds are still lying idle in the Central Bank account as a result of suspension of the health sector budget Integrated Financial Management Information System (Ifmis) operating system by the National Treasury whereby it is now impossible for our accounting staff to process any payments for the transferred function through Ifmis,” Sonko told the Senate's Health committee.
The Senate Health committee was also told that Sh17.6 million conditional grant from the Danish government were received on April 30, 2020.
The funds are still idling in the County Revenue Fund account since the county has been blocked from accessing Ifmis.
“The funds are currently held at the County Revenue Fund Account as it has become practically impossible to utilise them due to Ifmis budget withdrawal thus the county cannot process their disbursements,” Sonko said.
Sonko also added that his administration owes the Kenya Medical Supplies Agency ( Kemsa ) Sh374.9 million noting that debt was incurred before the health functions were transferred to NMS.
“The health sector has pending bills amounting to Sh1,072,998390 comprising Sh801.9 million being recurrent expenditure and Sh270 million being development expenditure pending bills,” he added.