Yatani fights back against budget boss on Sh15bn coercion claim
Former National Treasury Cabinet Secretary Ukur Yatani. Inset is Controller of Budget Margaret Nyakang'o. He has released a statement defending himself against claims of coercing her to release Sh15 billion just days before the election.
Former National Treasury Cabinet Secretary Ukur Yatani has threatened to sue Controller of Budget (CoB) Dr Margaret Nyakang’o over her revelation to Parliament that the former CS coerced her to approve payments from government accounts without the approval of lawmakers.
On Tuesday, Dr Nyakang’o told Members of Parliament (MPs) that she was pressured to authorise the release of Sh15.2 billion just five days to the August 9 General Election.
Dr Nyakang’o recounted before a parliamentary committee how the then Treasury CS invoked President Uhuru Kenyatta’s name numerous times to press her to approve the payments.
But in a scathing statement released on Wednesday, Mr Yatani has fought back against her claims while terming them as “false, malicious and actionable in law”.
“This depiction is libelous and defamatory to my character and professional service to the public in many capacities. I have instructed my lawyers to study her utterances and advice on a law suit against her person,” he said.
The former CS says that Article 223 of the Constitution allowed him as Treasury CS to in certain circumstances authorise expenditures that had not been appropriated by Parliament and that allegations he pressured is therefore “calculated malice”.
Mr Yatani says that the Treasury recently used the same Constitutional provision to approve spending of Sh127.5 billion for the national government through the supplementary budget and that the same was approved by Ms Nyakang’o.
“What makes this approval of Sh15 billion ‘sneaky’ and that of the Sh127.5 billion before Parliament and mostly under the current government legitimate? Yet they both used the same constitutional path,” wondered Mr Yatani while implying that her narrative is politically motivated.
The Constitution gives the Controller of Budget the mandate to approve the withdrawal of cash from the government’s main accounts and has powers to block access of funds suspected to breach the law. Article 223 allows Treasury to withdraw money from the Consolidated Fund Services (CFS) without the approval of Parliament but to seek the approval within two weeks once Parliament resumes sittings.
Fuel subsidy
Part of the spending that was approved by Ms Nyakang’o is Sh16.59 billion to the Ministry of Petroleum for the fuel subsidy.
“In accordance with Article 223 of the Constitution of Kenya 2010, I hereby grant approval for withdrawal of funds of Sh16.597 billion. Please proceed to seek Parliamentary approval for this expenditure as required by Article 223 (2) and (3) of the Constitution,” she said in a letter dated August 31, 2022 to then Treasury Principal Secretary Dr Julius Muia.
This spending is part of Sh34 billion that was paid to 11 oil marketing companies (OMCs) in fuel subsidy in the 15 months to the August 2022 polls, according to a special audit report by Auditor-General Nancy Gathungu.
The spending includes irregular utilisation of Sh22.68 billion from the Petroleum Development Levy Fund (PDLF), overpayment of OMCs and irregular advance sales prices stabilisation compensation of Sh5.32 billion. Also flagged are irregular demurrage charges Sh3.2 billion passed to the consumers through high pump prices and Sh2.21 billion in irregular administrative costs.
Other payments approved by the Budget Controller include Sh4 billion meant for a month-long maize flour subsidy programme, Sh2.2 billion for Level Five Forces Research Hospital, Sh500 million for maintenance of Nzoia Sugar Factory and Sh6.09 billion for sale of Telkom Kenya to the government.
A further Sh9.45 billion was approved for infrastructure flagship projects, Sh810 million for undisclosed office operations at the Office of the President, Sh125 million for the multi-agency security teams operations, Sh4.12 billion for the Secondary Education Quality Improvement Project and Sh2.96 billion for Nairobi Metropolitan Services (NMS) pending bills.
The Sh9.45 billion spend on infrastructure projects includes Sh2.8 billion paid for the improvement of the Lamu-Ijara-Garissa road to all-weather standard, dualling of the Nairobi Eastern Bypass for Sh4.8 billion and the construction of the Makupa Expressway for Sh1.85 billion.
“Please note that Sh8.45 billion of the approved funding will be realized from the Roads Annuity Fund whereas the balance of Sh1 billion will be realised through overall rationalization of the budgets of ministries, departments and agencies,” said Mr Yatani in a letter dated August 3, 2022 to then Transport PS Paul Maringa.
