ODM richer than Jubilee on paper as financial statement out

ODM Party has released its financial statement detailing its funds use but at the same time lamenting the delayed disbursement of money running to billions over years.

According to the financial statement from the party, if Treasury were to disburse all its dues; the Raila Odinga-led party would be richer than the ruling Jubilee. But this just remains on paper.

ODM Secretary-General Edwin Sifuna tweeted on Tuesday morning appreciating the Sh200 million allocated to party for current financial year, but also lamenting that the Sh7 billion arrears could take eternity to clear.

“The debt owed to ODM Party by Treasury is Sh7.7 billion. This financial year Parliament allocated Sh200 million only towards settlement of the debt meaning it will take close to 40 years to fully pay up at that rate,” Sifuna said in a tweet.

In an interview with Standard Digital, Sifuna said the Sh7.7 billion had piled up from the Sh4 billion the Treasury owed the party back in 2011 to 2016 period. The party had a breakthrough when the court ruled that the Orange party was to be paid the dues by the Treasury.

According to Mr Sifuna, who vied for Nairobi’s Senatorial position 2017; the Orange party is treading on the financial danger zone given the electoral duties lined up ahead.

He said that the party approximates an expense of Sh10 million in the coming party primaries for the Msambweni by-election. This, he said, excludes the amount the party will dip in the campaigns.

“We need money…we are a big party with lots of expenses,” he said. He proceeded: “We are continuing to engage the Parliament to ensure that Treasury increases the allocation and sends money in good time.”

 Omar Idd Boga and Nicholas Zani are expected to fight in out at the primaries for the party’s ticket. The seat was left vacant after former area legislator Suleiman Dori died early this year.

Other by-elections that the Orange party expects to conduct primaries before fielding a candisdate include Mbale Ward in Taita Taveta County, Kisumu North Ward in Kisumu County and Kahawa Wendani Ward in Kiambu.

 The Orange party had their financial accounts published in one of the dailies as part of the party’s transparency obligation.

In the statement, shared by Mr Sifuna, the party’s expenditure rose from Sh216 million in 2019 to Sh304 million in 2020.

Financial scorecard

The value of the party’s net assets stands at Sh7.8 billion this year up from Sh6.6 billion last year.  However, the total income from Sh6.6 billion last year to Sh1.5 billion this year.

Administrative costs, financial costs, branch and coordination support, campaigns, civic education, conference and meetings and party policy and advocacy are some of the areas the party spent the Sh304 million.

The party’s revenue stemming from public contributions and donations also fell from Sh78 million last year to Sh69 million this year. Transfers from government increased from Sh112 million last year to Sh263 million this year.

This comes a day after the ruling party Jubilee got a boost of Sh327 million funding from foreign donors. This uplifted the party from the financial crisis which was threatening it with bankruptcy.

A recent report painted grim picture of a party spending beyond its means and struggling to survive the tides of tough political environment. But all these struggles could be put to bed as the party nears 2022 General election.

"The statement of financial position as at June 30, 2018, reflects current liabilities balance of Sh133,558,229 which exceeds current assets of Sh67,278,244 by Sh66,279,985 implying that the party was operating with negative working capital, thus technically bankrupt," the report read.

It went on: "In the circumstances, the continued existence of the party is dependent on continued financial support from creditors, bankers and well-wishers."

This means, the party’s total revenue rose 56.6 per cent to Sh862.3 million from Sh373.6 million in a similar period last year.

Court battles

On November 2, 2019, the ODM party took the State to court over delayed disbursement of Sh4.1 billion that had been awarded to it by the Appellate Court after three-year legal battle.

The amount was based on the 0.3 per cent of national revenue for the period between 2012 to 2016.

“We wrote to the Registrar of Political Parties after holding several meetings. The general public believes we already have the money which is not true,” said ODM Treasurer Timothy Bosire.

Registrar of Political Parties Anne Nderitu would then exonerate her office of the blame saying another institution held the authority to facilitate the disbursement of such funds, which were awarded based on that formula.

"The Office of the Registrar of Political Parties, among others, is [meant] to administer the fund as and when received from the National exchequer. When the money will be availed, the office will carry out its mandate of administration of the funds,” she said.