Auditor General reveals counties operating more than 200 bank accounts

The Auditor General has unearthed massive looting in counties through the operation of multiple bank accounts that are used to siphon taxpayers' money.

While appearing before the Senate Special Funds Committee chaired by Vihiga Senator Godfrey Osotsi, Auditor General Nancy Gathungu revealed that some counties illegally operate more than 200 bank accounts.

"Sometimes you find a dormant account for three years and suddenly there is money channeled inside, and all of a sudden it disappears. When you follow, you find it's a vehicle to transfer money," Gathungu said.

It further emerged that duplicate bank accounts are opened under several departments, but the money banked is channeled to other uses.

"You find county X is using the same services with 10 accounts, but county Y is doing the same with 200 accounts,” Migori Senator Eddy Oketch stated.

In her response, Gathungu said: "More than 10 bank accounts, to me, is a No. So, operating 300 bank accounts does not make sense to me."

The committee chair Osotsi on his part stated: "There is no way we are going to allow counties to operate in this manner."

The Auditor General further told the Senate that some of those bank accounts are allocated millions of shillings and purport to pay for services under the national government's purview.

"You find a county has established a huge account for high school bursary, but high school education is under the national government," she said.

"Are you then telling us to amend the PFM Act to issue controls on the establishment of funds accounts?" Narok senator Ledama Ole Kina asked.

The Auditor General also raised issues on the own-source revenue by counties as another avenue for the theft of public funds. Some counties are said to be under-declaring their revenue collections or targets.

In the latest Controller of Budget report, Kericho, Nyandarua, Machakos, and Lamu counties were listed as counties that registered the lowest collection, falling below target.

According to the Senate session, they either failed to submit all their collections to the Consolidated Fund or set up an ambitious target.

On the other hand, Uasin Gishu, Meru, Wajir, and Narok counties exceeded their collection targets during the reporting period, with their collections matching their overall revenue targets.

"Why is it last year this agency collected Ksh.2 billion, and this year it collected Ksh.1 billion with no explanation? Is it siphoning?" Gathungu posed.

The pending bills headache also featured in the Senate session, with the Auditor General saying that "counties are engaging in fiscal indiscipline."

"We are seeing contractors stalling due to debts," Senator Oketch added.

Osotsi on his part noted: "We, as Senate, are going to see pending bills as a debt put under the first charge."