EACC defends Controller of Budget after governors’ attack over expenditure report
Ngumbi criticised the governors for dismissing the audit findings, urging them to focus on implementing reforms to address the gaps identified by the Controller of Budget.
The Ethics and Anti-Corruption Commission has defended the Controller of Budget Margaret Nyakang'o following criticism from the Council of Governors (CoG) over her recent report, which exposed irregularities in county development expenditure.
The report revealed that some counties maintain an alarming number of bank accounts, with some running into the hundreds, raising concerns about the management of devolved funds.
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Speaking in Mwingi, Kitui County, EACC Spokesperson Eric Ngumbi criticised the governors for dismissing the audit findings, urging them to focus on implementing reforms to address the gaps identified by the Controller of Budget.
He highlighted the implications of counties operating numerous bank accounts, questioning their necessity and the impact on transparency.
"You cannot justify why a county government has to operate hundreds of bank accounts," he said.
Threatening devolution
Ngumbi also warned that the mishandling of public funds threatens the success of devolution, calling on governors to adopt recommendations from the EACC’s Corruption Risk Assessment reports conducted in 28 counties.
He urged them to prioritise accountability measures to safeguard public resources.
The Council of Governors, however, defended their position, arguing that the report was misleading as counties did not receive any funds from the National Treasury during the first quarter of the financial year.
The council noted that the allocation for July was released on September 24, 2024, an 85-day delay, while the allocation for August was released on October 17, 2024, a 78-day delay.
CoG Chairman Ahmed Abdullahi noted that any development projects undertaken during that period were funded through leftover balances from the previous year or commercial loans.
Ahmed accused the Controller of Budget of presenting the counties in a negative light, causing unnecessary public backlash and undermining the role of county governments in delivering services.
He also blamed the delays in fund disbursement on the Controller of Budget’s office, further escalating the standoff.
"We find contemptuous, the reports of counties spending zero per cent on development. As a matter of fact, counties received zero exchequer releases from the National Treasury during the quarter. Any development done during that quarter was funded from last FY's arrears while most counties were forced to go for short-term loans from commercial banks to pay salaries and sustain service delivery," he said.
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