While NMS wants all pending bills and contracts under the transferred functions handed over to them for payment, Nairobi County maintains that the agency cannot take over such payments as contracts are not transferable.
Governor Mike Sonko maintains that all the contracts that the county government had entered into prior to the establishment of NMS should be completed and paid by City Hall while NMS be responsible for new ones they enter into going forward.
“The contract is between the county government and the contractors so why would NMS want to transfer such contract yet contracts are not transferrable? Whatever contract they had with the contractors should be completed and paid,” said Mr Sonko.
But NMS is arguing that with the transferred functions, they are the ones with the budget and they should take over all the pending bills and contracts as the county government has no budget for the same.
City Hall though wants the budget to be made available to them to pay for the pending contracts and the pending bills.
A team has now been formed comprising representatives from City Hall, NMS and office of the Attorney General to provide information of all the pending contracts and bills whose work have been completed and are just awaiting payment as well as those ongoing so that the number and amount pending known for a decision to be taken.
Nairobi County has pending bills worth Sh10.67 billion from 839 legitimate claims passed by the Auditor-General.
However, the county has only paid contractors and suppliers Sh1.1 billion with another Sh3 billion to the Kenya Revenue Authority in value-added tax and pay-as-you-earn arrears. This leaves Sh6.57 billion unpaid.
In July, NMS Director General Mohammed Badi said they are reviewing all claims that have been pending since 2013 with a view to settling them soon.
He said small and medium enterprises (SMEs) that supplied goods and provided services to Nairobi County valued at below Sh5 million will be given priority.
This was after Nairobi MCAs called on NMS to take over payment of pending bills at the county government. The ward representatives raised concerns over the manner the payments were being made with several contractors and suppliers yet to be paid their dues despite the assembly approving a Sh3.6 billion supplementary budget for the same.
Credit: Source link