A Senate panel on Monday put Bungoma Governor Kenneth Lusaka on the spot over some 352 bank accounts operated by his administration.
It emerged that out of the accounts, a county official, identified as Caren Naliaka, operating with the name ‘Makona’, is a signatory to 70 accounts.
The revelations emerged during the questioning of Lusaka over the mind-boggling number of accounts operated by the county governments, most of them held at commercial banks.
The panel chaired by Wajir Senator Sheikh Abbas, put Lusaka to task to explain the rationale for operating such a high number of accounts.
“Did you follow the law in opening the accounts?” Marsabit Senator Mohamed Chute posed.
Lusaka defended the accounts saying his administration is operating 10 public funds accounts, nine special purpose accounts and a project management account.
The county is also operating nine subcounty imprest accounts, two Mabanga operation accounts and 19 Level 4 & 5 hospital accounts.
There are also four own source revenue collection accounts, 152 vocational training centre accounts and 146 health facility and dispensary accounts.
According to Lusaka, Bungoma county was already operating 146 bank accounts before the operationalisation of the Public Finance Management (County Government) Regulations 2015.
Lusaka said he issued a guideline to the fund administrators and chief officer for health and sanitation on the scaling down of the accounts.
Lusaka said 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 and health facilities and dispensaries in the county,” the county boss said.
Lusaka said the county health facilities receive funds directly from donors which requires them to maintain individual separate accounts.
He added that the accounts are fully audited and included quarterly financial statements.
“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 compiled and shall continuously appraise the office of the Controller of Budget.”
County Finance executive Chrispinus Barasa was put to task to explain how Makona 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 appear to be signatories to many bank accounts,” nominated Senator George Mbugua said.
“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?” he posed
Barasa shocked the committee when he admitted that he did not know her.
He pleaded with the committee to give them one month to ascertain all the signatories and report to the committee.
The executive asked the committee to consider amending section 82 of the Public Finance Management (County Government) Regulations 2015 which allows the counties to open and operate a few accounts at the CBK.
Chairman Abbas directed the governor to provide additional information to the committee, including the names of individuals managing the accounts.
“We need a detailed report on the accounts within three weeks,” Abbas said.
The chairman also directed Lusaka 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.