Auditor General Nancy Gathungu has urged counties to stick to a more manageable number of bank accounts to keep track of their revenue and expenditures.
Appearing before the Senate Committee on County Public Investment and Special Funds on Wednesday, September 4, 2024, Gathungu criticized the practice of counties juggling many accounts, arguing that it complicates financial accountability.
The Auditor General noted the need for counties to minimize the number of bank accounts they manage, suggesting that one or two accounts dedicated to revenue and expenditure would be sufficient.
She warned that the current practice of juggling hundreds of accounts could lead to a loss of control over funds, making it difficult to track where the money is going.
“We should minimize bank accounts. We need one or two revenue or expenditure accounts. We don’t need 300. First of all, you lose track of funds,” Gathungu said.
She also pointed out the issue of fund duplication, where similar funds exist at both the national and county levels, particularly in sectors like agriculture and education.
“You find funds in the country running operations of departments of counties. For instance, you find a fund for agriculture and have the department for agriculture. In short, you find duplication of funds at the national level and county level,” she added.
She further highlighted the case of bursaries, noting that counties often issue bursaries for secondary school students, a role according to her is being managed at the national level.
“I can’t say one or two bank accounts are enough, but having 200 to 300 accounts does not make sense,” Gathungu declared.
Bungoma has 352 accounts
Gathungu’s remarks come in light of Bungoma Governor Kenneth Lusaka confirming 352 bank accounts for the county’s operations.
“Indeed, I reconfirm that we have 352 bank accounts being managed by my administration. Most of these accounts belong to vocational training centres, health facilities and dispensaries in the county,” Lusaka confirmed.
Lusaka clarified that Bungoma County’s bank accounts were each opened transparently in accordance of legal guidelines.
These accounts include 152 for vocational training centres, 146 for health facilities, 10 for established funds, and others for various county functions such as special projects and revenue collection. He emphasized that health facilities maintain separate accounts due to direct donor funding, and all accounts are audited and included in quarterly financial statements.
However, Bungoma Senator Wafula Wakoli has accused the county of fraudulently opening these accounts to siphon public funds.
In response to these allegations, Lusaka appeared before the Senate Standing Committee on Devolution and Intergovernmental Relations to address the audit queries.
The committee requested the identities of those operating the accounts, and Lusaka assured that they are cooperating with the investigation, confident that the ongoing probes by state agencies will clear his administration of any wrongdoing.
“We are in the process of complying with that request. Relevant investigative state agencies are carrying out their independent probes. I’m certain I shall be vindicated when the detectives accomplish their work,” Lusaka stated.