Auditor General Uncovers Why Governors Operate More Than 100 Bank Accounts & Notorious Counties
The Controller of Budget, Nancy Gathungu, has flagged the issue of counties managing a large number of bank accounts.
Many Kenyan counties are under scrutiny for maintaining hundreds of accounts with vague purposes.
Testifying before the Public Investments and Special Funds Committee on September 4, Gathungu pointed out that these numerous accounts are often linked to resource mismanagement.
A recent report from the Office of the Controller of Budget revealed that over 1,000 county bank accounts are held in commercial banks, which violates the law requiring counties to store funds in the Central Bank of Kenya (CBK).
Bungoma County, with 321 accounts, Migori County with 208, and Kwale with 165, are the top three counties with the most accounts.
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The Auditor General has suggested that these numerous accounts are often used to mask financial mismanagement or obscure money trails.
Gathungu explained that the proliferation of accounts can lead to oversight issues, with funds sometimes forgotten and later reallocated without proper tracking, further complicating audits.
She emphasized that maintaining numerous bank accounts is inefficient and complicates the auditing process, advocating for a reduction to no more than three accounts.
Gathungu expressed concern about the mismanagement of funds, noting that the complexity of managing multiple accounts can lead to errors in fund allocation.
She highlighted the risk of counties exploiting legal loopholes to establish excessive funds, which could undermine financial transparency.
Gathungu stressed the importance of accountability in the use of public resources, noting that it is crucial for maintaining public trust in government institutions.
Auditor General Uncovers Why Governors Operate More Than 100 Bank Accounts & Notorious Counties
