Court extends orders stopping execution of Vihiga's Sh5.8bn budget

 

The High Court on Tuesday extended orders staying implementation of Vihiga County's Sh5.8 billion 2021/22 budget by 10 days, further deepening the financial crisis the devolved unit is facing.

Justice Farah Amin extended orders that were to expire on July 6 to July 15, when the matter will be mentioned and the directive reviewed.

The court will also use the July 15 sitting to confirm compliance with orders and service of submissions by the respondents.

Former County Secretary Francis Ominde and political analyst Joseph Simekha challenged the legality of the budget after Deputy Governor Patrick Saisi raised the alarm, saying the document was not approved by the county executive committee before it was submitted to the assembly.

The petitioner sued Finance Executive Alfred Indeche, Governor Wilber Ottichilo, Speaker Hasna Mudeizi and Clerk Ambaka Kilinga.

The Controller of Budget, the Deputy Governor and all the CECs were listed as interested parties in the case.

Public interest

Justice Amin dismissed the move by the respondents to oppose extension of the orders on the grounds that it was causing Vihiga residents to suffer. The judge also noted that the matter is of great public interest.

Mr Ominde and Mr Simekha allege in their court papers that the government spending plan is illegal because it did not was not approved by the county executive committee as required by the law.

The stay orders put on hold execution of the budget, including disbursement of funds by the National Treasury, six days after the start of the new financial year.

Governor Ottichilo will not be able to assent to the approved budget while the Controller of Budget will not approve the document.

The petitioners argue that the estimates needed the approval of the county's cabinet as required by Section 129 (1) of the Public Finance Management Act, the Constitution and other applicable laws.

What happened

The matter first emerged in May when the deputy governor wrote to Speaker Mudeizi informing her that the budget estimates that had already been forwarded to the assembly for consideration had not been discussed and approved by the cabinet.

At the time, Dr Saisi - who has since fallen out with Governor Ottichilo - had sought to return the county’s Sh5.8 billion budget to the executive, for it to go through the required process.

In a letter to the speaker, the deputy governor said he was shocked that a document that needed approval of the county cabinet was already before the assembly and was undergoing public participation.

“I wish to reiterate that as a member of the county executive committee, I have no recollection of any meeting passing the annual budget estimates for financial year 2021/22, Dr Saisi said in May.”

He added: “As per the Public Finance Management Act 2012 Section 129(1) and (2), it is very clear that the county annual budget estimates need the county executive committee’s approval.”

He then beseeched the speaker “to find it needful” to allow the due process be observed to avoid opening avenues for litigation that could derail the county’s development agenda.     BY DAILY NATION