The Controller of Budget, Nancy Gathungu, has raised concerns over the numerous accounts operated by counties. It comes as most counties in Kenya have been in the limelight for operating multiple accounts, often stretching in the hundreds with unclear roles.....CLICK HERE TO READ THE FULL ARTICLE>>>
While appearing before the Public Investments and Special Funds Committee, Nancy Gathugu on Wednesday, September 4 observed, that numerous accounts are used in mismanagement of resources.
According to a recent report by the Office of the Controller of Budget, over 1,000 county bank accounts are collectively operated in commercial banks which is against the law. The law requires counties to hold their funds in the Central Bank of Kenya (CBK).
The three notorious counties operating the most accounts are Bungoma County with 321, Migori County with 208, and Kwale with 165 accounts.
The Auditor General attributed the numerous accounts as camouflage to hide counties’ misappropriations or erase tracks of money transactions.
“First of all, you will lose track, you put money there sometimes you forget that there is money there and then you come and in some of my reports you will see there are re-allocations from this account to another account and it was set up for a fund,” she explained.
The Controller of Budget noted that operating many bank accounts is uneconomical and makes the process of audit unnecessarily complex. She said even a mere ten, is too much recommending less than three bank accounts.
“I think we should minimize bank accounts, we should have one or two expenditure accounts. We don’t need 300,” Gathungu stated.
She further raised concerns over mismanagement and misuse of funds explaining that the complexity of managing numerous accounts can lead to misallocation of funds.
“My biggest problem concerning counties is that the law gives counties a blank check on how many funds they can establish,” she noted highlighting it may curtail transparency in the use of public funds.
She elaborated on the need for accountability by the counties in the use of public resources as a pillar to bolster public trust and confidence in government institutions….CLICK HERE TO READ MORE ARTICLE>>>
