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Gusii County council to miss LATF funds due to debt

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Published on Saturday, 05 November 2011 03:35

A county council in Kisii has appealed to Local Government minister Musalia Mudavadi to intervene and force ten councils hived from it to share and clear a debt it owes a security fund.

Due to the outstanding debt of Sh53 million, the Gusii county council may miss out Sh114 million Local Authority Transfer Fund (LATF) until it clears the National Social Security Fund ( NSSF) of the debt. “I am appealing to the minister for local government to intervene and compel ten councils hived from the council to share and pay the debt incurred before they split,” Council Treasurer John Omari said.

Omari said the council was unable to pay the money after Nyamache, Nyamarambe, Tabaka, Gucha, Suneka, Keroka, Masimba, Nyansiongo and Nyamira county councils left it with the burden. He said the council had resolved not to remit the money to NSSF until the debt is shared accordingly. “We wanted to go for a bank loan to pay the debt but after deliberations, we resolved that we share the liability since the councils are still operational” Omari said.

The Treasurer said the government had increased the council’s LATF from sh106 million to Sh114 million due to its good performance in implementing LATF supported projects. Separately, County Clerk, Isaac Githui revealed the European Union (EU) has funded water projects and health facilities at the council to a tune of Sh25 million.

Githui noted EU protected 90 water springs to a tune of Sh9 million and funded Rikendo, Isamwera, Emeroka and Mosocho dispensaries at sh16 million. He revealed that the council contributed Sh2.5 million for the water projects and towards equipping the dispensaries with bedding and drugs.