Kisumu Finance CeC George Ongaya has assured the county assembly that the Sh280 million development fund is intact.
Ongaya who appeared before the whole house committee on Wednesday said the fund will be disbursed to the MCAs for development in their wards.
He said what delayed the fund disbursement is putting a legal law to oversee how the MCAs will use the money.
“A law must be put in place to regulate how the funds will be used and the process is on to enable the county to disburse the fund to the MCAs,” he told the assembly.
The MCAs were irked by the letter authored by Ongaya that the fund will be reallocated to other sectors.
He explained to the MCAs that the letter was taken out of context noting that the fund is solid and will not be taken to do other projects other than ward developments.
The MCAs had approved the Ward Development Fund in the budget of financial year 2015/2016 where all the 35 wards were to receive Sh. 8 million each for development.
The money was meant for the construction of a new Kisumu County Assembly chamber but was derailed with corruption issues on tendering and later shelved and the first batch allocation rerouted to the ward development fund.