Gathungu to counties » Capital News
NAIROBI, Kenya, Sep 4-The Auditor General Nancy Gathungu has urged counties to reduce bank accounts they operate from a high of 300 to less than 10 so as to eliminate dormancy and ensure the effective utilization of public funds.
This appeal follows a recent report from the Controller of Budget, which found over 1,000 county bank accounts in commercial banks, in violation of the law that mandates counties to hold their funds in the Central Bank of Kenya.
Counties flagged for this practice include Bungoma, which operated 321 accounts, followed by Migori with 208 accounts, and Kwale with 165 accounts.
Speaking Wednesday when she appeared before the Public Investments and Special Funds Committee Gathugu warned that counties risk losing track of public money as a result of operating multiple bank accounts.
The Auditor General stated that counties having more than 10 back accounts is “too much” adding that operating 300 or 200 accounts “don’t make sense to me.”
“I think we should minimize bank accounts we should have one or two expenditure accounts. We don’t need 300,” Gathungu said.
Gathungu expressed concerns about the potential for mismanagement and misuse of funds, noting that the complexity of managing numerous accounts can lead to oversight and misallocation of resources.
“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 is re-allocations from this account to another account and it was set up for a fund.”
The AG further expressed concern over the existing gaps in the law which she says has given counties a leeway to create multiple accounts which argues open the door to the misuse of public funds
“My biggest problem concerning counties is that the law gives Counties a blank check on how many funds they can establish,” she said adding that sooner than later the country will have more funds kitties that are running operations of departments of counties.
“So, you’ll have a find for agriculture and you have the department for agriculture, fund for gender and you have a department for gender then you have duplication of funds at the national level also at the County level.”
She singled out the establishment of bursaries for secondary schools by counties despite secondary school’s education falling under national government.
The AG expressed optimism that the ongoing national conversation of affordable education would address some of these challenges including rationalization of bursaries.
The Auditor General emphasized that accountability for public resources is crucial to ensuring that citizens receive quality and sustainable services.
She also stressed that accountability enhances public trust and confidence in government institutions.
Gathungu underscored the importance of collaboration between her office and other government institutions to better serve Kenyans.
“As such, this Committee and other Watchdog Committees must maintain a cordial relationship with the Auditor-General. This will enable active follow-up of those public institutions that do not account for public resources entrusted to them as required by Article 226(2) of the Constitution,” the AG noted.
The Auditor General reiterated her commitment to providing high-quality, effective, and timely audit reports to the Committees.
She urged the Committees to discuss these reports expeditiously, provide recommendations, and assist in the follow-up on the implementation of audit recommendations, including various performance audits already issued.
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