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Ottichilo defends decision to operate 146 county bank accounts

Ottichilo defends decision to operate 146 county bank accounts
Vihiga Governor Wilber Ottichilo PHOTO/Courtesy
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Senators yesyerday questioned why Vihiga County government operates 146 bank accounts, including several with commercial banks contrary to the law.

The Senate County Public Accounts Committee took Vihiga Governor Wilbur Ottichilo to task as members sought an explanation as to why his administration was operating several bank accounts.

“Management did not provide the bank accounts register detailing the account name, purpose and signatories,” the report states.

Ottichilo defended his administration saying that some of the bank accounts were a condition given by the development partners and not entirely his own decision.

He stated that the 96 accounts listed in the query by the Auditor General comprise of Health facilities, Trade Enterprise/Empowerment Fund, Ward Bursary Fund and Vocational Training Centre Accounts.

He said that although his administration has 146 bank accounts as disclosed in the schedule, there are only two accounts by the County Executive.

Kisii Senator Richard Onyonka sought demanded answers from auditors and Anti-Corruption Commission official attached to the committee on whether the law provides for operations of such high number of bank accounts.

However, Ottichilo (pictured) said the accounts were for independent funds established under the county, grants from the national government and donors.

“There are certain funds that are independent, that operate their own accounts. The accounts are audited every year,” he said.

The auditors and EACC liaison officer said while counties are allowed to operate accounts with commercial banks, the same is limited to operations and imprest management and that laid down procedures and approvals have to be sought.

Ottichilo sought to absolve his administration from any financial misappropriation.

The county chief appeared before the nine-member panel chaired by Homa Bay Senator Moses Kajwang to respond to audit queries flagged by auditor general Nancy Gathungu.

The governor refuted report that his administration incurred an authorised expenditures amounting to Sh292.18 million.

According to the audit report, the county spent the cash on staff compensation yet the same was not captured in the county budget.

“The amount was not appropriated by the County Assembly contrary to Section 42(1)(b) of the Public Finance Management (County Governments) Regulations, 2015.

“The Regulations stipulate that the Accounting Officer should ensure that public funds entrusted to their care are properly safeguarded and are applied for purpose for only which they were intended and appropriated by the County Assembly,” the report said.

The Governor said the county executive did not overshoot the budget as captured by the auditor.

“The County Executive reported an amount of Sh2.06 billion as compensation of employees during the financial year 2019/-020,” he said.

It comprised of basic pay to permanent employees Sh883.31 million Basic Pay to temporary employees Sh322.92 million and Personal Allowances paid as part of salary Sh857.92 million.

The expenditure was against the overall budget for compensation to employees of Sh2.08 billion.

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