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Sh2B Lost Through 192 Bank Accounts Created By Baringo County Officials

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Governor Stanley Kiptis.

Auditor-General Nancy Gathungu has flagged suspicious expenditures and budget irregularities in Baringo that possibly led to loss of billions of shillings.

The auditor-general has revealed that Baringo County has been operating more than 192 bank accounts, possibly leading to misuse of Sh2.1 billion in 2018-2019.

Governor Stanley Kiptis’ administration is on the spot for running illegal commercial bank accounts, some which were used to disburse funds to health facilities.

“The county executive operates 192 commercial bank accounts that it uses to disburse funds to dispensaries. However, the closing balances in the accounts have not been incorporated in the financial statements by the county. In addition, when the audit sought to confirm the balances, the respective banks did not respond to letter sent to them,” reads the auditor-general’s report.

The report reveals that absence of sufficient and reliable information may have led to loss of part of Sh2.1 billion.

“In the absence of sufficient and reliable information, the accuracy of the cash and the cash equivalents balance totalling to Sh2.1 billion reflected in the statements of assets and liabilities as at June 30, 2019 was not confirmed,” the auditor-general states.

The report further revealed that the aggregate bank balances included Sh128.3 million held in 44 bank accounts operated contrary to regulations of the Public Finance Management Act, 2015.

“Therefore, in operating the accounts with commercial banks, the county executive was acting contrary to government banking regulations. The regulations require that all bank accounts of county governments, other than imprest accounts, be operated at the Central Bank of Kenya,” the audit report further reads.

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(BD)


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