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A Senate Committee has put on the spot Bungoma County government for operating 352 commercial bank accounts, raising possible avenues for pilferage of funds.

This even as the Senate Devolution and Intergovernmental Relations Committee established that a county staff Caren Naliaka also operates with the name ‘Makona’ who is a signatory to more than 70 bank accounts.

The committee chaired by Wajir lawmaker Sheikh Abbas asked Bungoma Governor Ken Lusaka to explain why his administration is operating so many bank accounts.

Lusaka told the committee his administration is operating ten established public funds accounts, Special purpose Accounts (9), Project management accounts (1), Sub County Imprest Accounts (9), Mabanga Operation Accounts (2), Level 4 and 5 Hospital Accounts (19), Own source revenue collection accounts (4), Vocational Training Centre Accounts (152) and Health facility and Dispensary Accounts (146).

According to Lusaka, the Bungoma county government was already operating 146 bank accounts before the operationalisation of the Public Finance Management (County Government) Regulations 2015.

Smooth transition

While defending himself, Lusaka told the committee that to ensure that there is smooth transition and avoid interrupting service delivery, his County Executive Committee Member in Charge of Finance and Economic Planning issued a guideline to the Fund Administrators and Chief Officer for Health and Sanitation on the scaling down of the accounts.

Lusaka explained that the accounts were established with the approval of the Controller of Budget and the Central Bank of Kenya.

“I am confirming that we have the 352 bank accounts. But most of the accounts belong to Vocational Training Centres (VTCs) and health facilities and dispensaries in the county,” Lusaka stated during his appearance before the committee.

While giving the breakdown of the bank accounts, Lusaka revealed that VTCs in the county have 152 accounts, while health facilities have 146.

“Our health facilities receive funds directly from donors, which require them to maintain individual separate accounts. These accounts are fully audited and included in our quarterly financial statements,” Lusaka explained.

He went on: “We have made progress and we are committee to ensure that regulation 82 (1) (b) of the Public Finance Management (County Government) Regulations 2015 is complied and shall continuously appraise the office of the Controller of Budget (COB).”

Bank signatory

Finance and Economic Planning CEC Chrispinus Barasa was at pains to explain how Caren Makona also known as Naliaka is a signatory to more than 70 bank accounts ranging from Vocation Training Centres to Health facilities including Dispensaries.

“The report that you have submitted shows four persons of interest who appears to be signatories to many bank accounts. There is Caren Naliaka who sometimes calls herself Caren Makona, Frida Wasilwa and sometimes calls herself Wabwire, Godfrey Juma and Caroline Nanjala. Who is Caren and why is she a signatory to more than 70 accounts?” posed nominated Senator George Mbugua.

Mohammed Chute (Marsabit) on his part questioned the Bungoma County officials if they followed the law in opening some collection accounts.

“Most of the accounts date back to 2010 before the onset of devolution and have the same signatories’ up to date. Did you follow the law in opening the accounts?” posed Chute.

In his response, Barasa pleaded with the Committee to consider amending section 82 of the Public Finance Management (County Government) Regulations 2015 that allows the Counties to open and operate few accounts at the Central Bank of Kenya (CBK).

However, he shocked the committee admitting that he does not know whom Caren Naliaka who is a signatory of more than 70 accounts, asking the committee to give them one month to ascertain all the signatories and report to the committee.

Senator Abbas while making interim orders requested the Governor to provide additional information, including the names of individuals managing the accounts.

“We need a detailed report on the accounts within three weeks,” Abbas directed.

In addition, Lusaka was directed to furnish the committee with full identities of the four individuals whose names appear as signatories to multiple accounts as well as copies of the last audited reports of all the 352 commercial accounts.