TOUGH CONDITIONS BY THE TREASURY TO THE PPP AGREEMENT
In a letter written to the Governor, the National Treasury has given Isiolo County stringent measures to comply with before embarking on the signing of the controversial agreement with Living Goods. In the letter Treasury wants the project to be owned fully by Isiolo County Government and not jointly with Living Goods. The letter has also asked the County to ensure monies allocated to the agreement does not exceed 8% of the total funds allocated to the County Health Budget, going by the budgetary allocation to the health docket this will drastically reduce the monies from the initial Kshs. 345M.
Treasury also wants Isiolo County Government to own all the assets that will be acquired through funds assigned to this project. To ensure this happens Treasury wants all assets registered and controlled by Isiolo County Government. “Administrative expenses of Public Funds are capped at a maximum of 3% of approved Budget of the Funds and not 5% as provided by the regulations,” reads part of the letter. The letter also directs that NO fee including management fee shall be charged by Living Goods for project management or oversight or in delivery of its mandate under this agreement.
If the directives from the letter are to be adhered to in totality the agreement will undergo a complete surgery and all loopholes that could have been used to siphon public funds will be closed down. Living Goods will therefore embark on offering technical support only but the project will be fully owned by Isiolo County Government. According to the national treasury this conditionalities will guarantee prudent use of Public Funds.
This has come about when Isiolo County Senator and a section of Isiolo county residents petitioned the County Government and Living Goods which they claimed to be imprudent use of devolved funds.