PAC WARNS DELAYED PAYMENTS TO GAA THREATENS GOVERNMENT SERVICE DELIVERY

A parliamentary watchdog has raised the alarm over mounting delays in settling bills owed to the Government Advertising Agency (GAA) by ministries, departments, and state agencies (MDAs), warning the situation threatens to cripple service delivery.

The Public Accounts Committee (PAC), chaired by Butere MP Tindi Mwale, was told on Wednesday that government entities frequently place adverts through GAA but fail to pay promptly, blaming delayed exchequer releases from the National Treasury. Broadcasting and Telecommunications Principal Secretary Stephen Isaboke and GAA Director Michael Okidi confirmed that although MDAs commit funds for advertising in their budgets, payments are often delayed until Treasury disburses money.

“At times, there are delays in the release of the exchequer, which in turn affects timely payment. However, the payments are eventually made once the funds are disbursed,” Okidi explained. Committee members, however, expressed dissatisfaction, with Mwale accusing officials of shielding defaulting MDAs instead of being candid about the issue so Parliament can intervene.

“If you make that clear, the committee can compel them to pay. But if you continue defending them, you will leave here with the same problem,” Mwale cautioned, urging officials to emulate agencies like the National Police Service, which have openly disagreed with oversight bodies to allow MPs to mediate.

GAA is currently owed a cumulative Sh991 million. The biggest debtor is the Kenya Broadcasting Corporation (KBC) at Sh170 million, followed by the Kenya Forest Service (Sh36 million), Kenya Film Classification Board (Sh36 million), Kenya Yearbook Editorial Board (Sh34 million), Media Council of Kenya (Sh10 million), and Development Initiatives Works in Kenya (Sh3 million).

Officials told MPs that measures have been introduced to curb debt, including requiring Local Purchase Orders (LPOs) or Local Service Orders (LSOs) before placing adverts, and barring agencies with arrears above Sh2 million from making new bookings.