Puzzle of Lusaka's 352 bank accounts, 'faceless' signatories

Bungoma Governor Ken Lusaka is on the spot for operating 352 commercial bank accounts.

The governor had a difficult time trying to convince the Senate Devolution and Intergovernmental Relations Committee that this had not created a loophole for corruption.

And it got worse when his Finance CEC admitted that he did not know Caren Makona, also known as Naliaka, who is a signatory to more than 70 bank accounts.

The senators also noted that some of the accounts dated back to 2010 before the onset of devolution and have the same signatories.

“We would like Governor Lusaka to tell us whether the law was followed in opening up these bank accounts since it is very clear that some of these bank accounts go back to 2010 before the onset of devolution with the same signatories up to now,” said Mohammed Chute (Marsabit).

Chrispinus Barasa asked the committee to give him one month to ascertain all the signatories and report back.

The committee directed the governor to provide additional information, including the names of individuals managing the accounts with a detailed report on the accounts within three weeks.

“We are directing Governor 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,” said the chairman, Sheikh Abbass (Wajir).

The administration was also directed to provide guidelines given by the Danish International Development and other donors on the management of their grants.

Lusaka told the committee his administration operates 146 health facility and dispensary accounts, 152 for vocational training centres as well as 10 for other public funds.

Other accounts include nine for special purpose and one for project management, sub-county imprest (nine), Mabanga operation (two), Level Four and Five hospitals (19) and four for own source revenue collection.

Lusaka explained that the county "was already operating 146 bank accounts before the operationalisation of the Public Finance Management (County Government) Regulations 2015, this was to ensure that there is smooth transition and avoid interrupting service delivery.”

The Governor told the committee that the Finance CEC had issued a guideline to the Fund Administrators and the Chief Officer for Health on the need to scale down the accounts.

He said the accounts were established with the approval of the Controller of Budget and the Central Bank of Kenya (CBK).

“I would like to state that these accounts are fully audited and included in our quarterly financial statements. We have made progress and we are committed to ensure regulation 82(1)(b) of the Public Finance Management (County Government) Regulations, 2015, is adhered to and shall continuously appraise the office of the Controller of Budget (COB),” he said.

George Mbugua (Nominated) informed the Governor that the report he had submitted had four persons of interest who appear to be signatories to many bank accounts, with Makona, Frida Wasilwa, who sometimes calls herself Wabwire, Godfrey Juma and Caroline Nanjala.

Barasa pleaded with the committee to consider amending Section 82 of the Public Finance Management that allows the counties to open and operate few accounts at CBK.