Governors Stuffing Money in Private Bank Accounts, says Nyakang’o

By Mwakwaya Raymond 

Email, thecoastnewspaper@gmail.com

A number of governors are under scrutiny for operating secret bank accounts contrary to the devolution law.

Some governors, it is claimed, are privately stuffing money into commercial bank accounts while counties run without funds.

Controller of Budget (CoB) Margaret Nyakang’o, says bank accounts are opened on daily basis without the consent of the Central Bank of Kenya (CBK) or the finance cabinet secretary in the know.

The CoB boss, speaking in Mombasa at a Senate Committee on Devolution, said some of such accounts bore the names of politicians contrary to the law.

According to her the accounts are stuffed with colossal sums of money at the expense of service delivery and development of devolved units.

“County governments’ bank accounts shall be opened at the Central Bank of Kenya except for imprest or petty cash,” she cited the CoB Act.

She accused county governments of not disclosing the relevant information to her office and other offices when required to do so.

“Information pertaining to the number of commercial accounts operated by different counties is not forthcoming. They conceal such crucial information unto themselves,” she complained.

For many instances, she complained that most of the county governments never contacted her office for authority when opening commercial bank accounts but still went ahead to open them in violation of the existing laws.

The same sentiments have been echoed by the Auditor General (AG) Nancy Gathungu whose reports indicate many a counties operating commercial bank accounts without any clear reasons.

The AG expressed concern that even after prohibition of operating such accounts flagged up ten years ago, some counties were still practising the same today.

“It’s sad to find out that some counties have even opted to transfer public money to these separate bank accounts without any clear reason yet they know very well it’s against the law.”

CoB and AG offices’ investigations disclose that county officials gave conflicting information about the number of commercial accounts operated by the different counties.

“The number of commercial bank accounts voluntarily given by the county officials to the office of CoB does not tally to that given by the same officials to the Auditor General.”

The AG indicates that there are still more counties that are yet to fully disclose the information as required to clear air on the bank accounts.

Council of Governors’ (CoG) finance chair Ferdinand Baraza condemned the deliberate breaching of devolution laws by senior county officials and governors saying those involved should carry their own crosses.

“Though I agree that there are some counties that operate commercial bank accounts without the consent of the Central Bank as well as the Cabinet Secretary for Finance, those found culpable must face the music. But I must also state here that the law also permits the counties to run such commercial bank accounts because you cannot mix some of the monies.”

According to him donor funds cannot be banked in the same account with monies from the CBK though admitting transparency and accountability is paramount.

Senator Karungo Wa Thang’wa said the committee should come up with very harsh and serious recommendations so as to curb the practice for the wellbeing of devolution.

“Mr Chairman, I think it is time that we make this matter impeachable to governors such that whoever contravenes it can be impeached right away,” he added.

Present at the senate committee on the devolution forum sitting in Mombasa were Senator Peris Tobiko, Prof Margaret Kamar and committee Chair Mohamed Abbas.

The committee, however, directed the CoB to write a circular to all county governments to disclose the number of accounts that they were operating before meeting the finance CS John Mbadi to make a conclusive Senate report.