More than Sh268 billion in claims that suppliers want the government to pay are not supported by the requisite documentation, according to the Pending Bills Verification Committee.
A preliminary report submitted to the National Assembly Liaison Committee indicates that some of the Sh268 billion in pending bills lack documentation, while others have incomplete delivery records, making them ineligible for payment.
However, the audit committee, chaired by former Auditor-General Edward Ouko, has cleared Sh206 billion for payment out of the Sh664 billion in pending bills it has received.
John Mbadi the Cabinet Secretary for National Treasury and Economic Planning.
Photo credit: File | Nation Media Group
National Treasury Cabinet Secretary John Mbadi, clarifying the status of the pending bills, said the committee has yet to complete its work, having so far analysed only 48 per cent of the bills presented.
“The committee has received a total of Sh664 billion in pending bills from individuals, corporate bodies, and companies. While it has yet to complete its work, it has so far certified Sh206 billion as eligible for payment,” Mr Mbadi said.
The CS stated that the committee has analysed Sh474 billion out of the total Sh655 billion in pending bills presented.
“What I presented to the committee on the status of pending bills is just a preliminary report. The team has yet to complete its work and may even add more claims. So, we are still waiting for the final report,” Mr Mbadi said.
“As of now, if the government has funds, the Sh206 billion should be paid,” he added.
According to documents submitted by the National Treasury to the Liaison Committee, the sectors with the highest outstanding verified bills include energy, infrastructure, and ICT; health; education; public administration and international relations; agriculture and urban development; and national security.
A total of Sh97 billion has been approved for payment in energy, infrastructure, and ICT, followed by Sh41 billion in health, Sh28 billion in education, and Sh20 billion in national security.
Other sectors with significant outstanding verified bills include Environment, Water, and Natural Resources (Sh3.7 billion), General Economic and Trade Affairs (Sh1.2 billion), and Agriculture and Urban Development (Sh2.2 billion).
The government established the Pending Bills Verification Committee in September 2023 to address the growing backlog of unpaid claims owed to individuals and businesses. These bills include both current and historical obligations.
Pending bills are categorised as goods, services, works, employee-related claims, court awards, legal representation, loans granted, and human-wildlife conflict compensation.
According to the report, of the 33,634 bills received for the supply of goods to the government, worth a total of Sh209 billion, the committee has analysed 23,376 and approved 1,332 bills worth Sh11 billion for payment.
For services rendered, 33,074 claims were submitted, amounting to Sh144 billion. The committee has analysed 14,110 and approved 8,833 bills worth Sh38 billion for payment.
In the employee-related category, 33,322 claims worth Sh104 billion were received. So far, 2,316 have been analysed, with 1,411 bills worth Sh3.4 billion cleared for payment.
For other services, 3,396 claims amounting to Sh201 billion were submitted. The committee has analysed 2,316 and approved 657 bills with a net value of Sh103 billion for payment.
The committee also received 12,053 pending claims related to human-wildlife conflict, totalling Sh3.4 billion. Of these, Sh240 million has been recommended for payment.
The Pending Bills Review Committee is tasked with reviewing and analysing the national government’s accumulated unpaid bills and making recommendations for their settlement. The Ouko-led committee is also mandated to establish clear criteria for scrutinising and verifying pending bills to determine their authenticity. Additionally, it must identify any cases of corruption, fraud, or false claims and make appropriate recommendations to relevant government agencies.
