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DISPUTE:  Suppliers to the State Department of Correctional Services yesterday staged a sit-in, at the office of the Principal Secretary (PS) Zeinab Hussein, demanding payment of Sh6.2 billion pending bills unsettled between 2014 and 2018.

The suppliers said despite having historical pending bills, the PS had on two occasions, between 2018 and 2019, returned Sh1.6 billion, each financial year to the Treasury.

“When we asked her why, she said suppliers were using credit notes instead of local purchase orders, yet the credit notes said money will be paid once available.

In any case, we have been using the credit notes for the last eight years,” said Margaret Moraa (pictured, with red scarf), their spokesperson, adding that the PS had vowed to only pay those who supplied during her tenure.

The suppliers now want Interior Cabinet secretary Fred Matiang’i to take action against Hussein for lack of respect saying banks were now attaching their property to recover credit borrowed.

“Most of these merchants borrowed money from banks to meet their service requirements to various prisons across the country. Banks are now attaching our cars, houses and land to recover their money,” said Moraa.

The suppliers said the PS sent them to Treasury where they had an audience with the director of budget, accountant general and auditor, but they were sent back to the PS.

As at November 8, Treasury had wired Sh7.8 billion to the department to settle all pending bills as directed by President Uhuru Kenyatta.

Outstanding claims

“When we went back to the PS, we found a letter pinned on the notice board saying she does not want to see us,” said Moraa.

In a letter to suppliers dated December 16, 2019, a copy of which Business Hub has, the PS says “any outstanding claims that were incurred prior to June 30, 2018 were invalidated by three special audits, and therefore, the department is not in a position to settle any of these claims.”

Through the letter, the PS told suppliers that all outstanding claims had been forwarded to the National Treasury Pending Bills Closing Committee for determination, before her department could take any further action.