Bungoma Governor Ken Lusaka Defends 352 Flagged Bank Accounts by CoB
The implementation review report for the first nine months of FY 2023/24 revealed that county governments had been using accounts with commercial banks in violation of established laws.
The report released by the Controller of Budget, Margaret Nyakago, flagged Bungoma County for running 352 bank accounts contrary to the established legal framework.
“The County government operated a total of 352 accounts with commercial banks. This is contrary to Regulations 82(1)(b) of the PFM (County Governments) Regulations, 2015, which requires that County government bank accounts be opened and maintained at the Central Bank of Kenya. The only exemption is for imprest bank accounts for petty cash and revenue collection bank accounts,” read the report by the CoB.
Kenneth Lusaka explains why the county operates 352 accounts
Bungoma County Governor Ken Lusaka said that on Tuesday, July 16, 2024, the youth of Bungoma had tabled a petition seeking clarity of the county finances.
“They wanted an explanation of the 352 accounts. They were seeking a detailed explanation and transparency regarding the 352 accounts associated with the county finances” Lusaka said in a press brief.
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Lusaka confirmed the existence of these accounts, classifying them into established public funds, special purpose accounts, project management accounts, municipality accounts, and various others associated with county operations.
Notably, the county operates 152 accounts for the vocational training institutes in the Ministry of Education and health facility and dispensary accounts for all the health facilities in the county.
However, the governor did not clarify why the accounts were established contrary to the requirements as highlighted by the CoB.
Counties with the highest number of illegal accounts
Earlier on Gossipa2z.com, Margaret Nyakang’o, the CoB, reported that counties were operating over 1,400 unauthorized bank accounts, making it difficult to monitor public expenditure.
Bungoma, Baringo, and Migori counties had the highest number of illegal bank accounts, with 357, 304, and 208 accounts, respectively.
Bungoma Governor Ken Lusaka Defends 352 Flagged Bank Accounts by CoB
