Governors warned over public funds

Controller of Budget Agnes Odhiambo. Reports by the Controller of Budget late last year and more recently, the Auditor-General, state that county financial management is weak and spending controls non-existent.

What you need to know:

  • Mr Kerrow said most of the county governments had ignored the law on how public funds should be spent and that if the counties breach the financial regulations, they would be punished by the National Treasury.

Senators have warned Governors and their executives that they risk prosecution for extravagance in the use of public money.

They asked the Controller of Budget to reject any transfer of money to the counties if what is budgeted for is not part of the job of the counties as prescribed by the Transitional Authority.

The committee will visit all the counties to inspect their budgets and see if they are in line with the functions, which the counties are supposed to perform, the chairman of the Finance, Commerce and Economic Affairs committee, Mr Billow Kerrow, said Thursday.

Public finance

“The County Executive officers will be required to give explanations on their budgeted expenditure to ensure that they are in line with the gazetted functions,” he said.

He added that all accounting officers will have to confirm to the Senate that whatever is in their budgets complies with the Public Finance Management Act.

Mr Kerrow said most of the county governments had ignored the law on how public funds should be spent and that if the counties breach the financial regulations, they would be punished by the National Treasury.

“The National Treasury has the power to stop the transfer of funds to the County Government for material or persistent breach of measures established in various legislation, for example, the Public Finance Management Act,” Mr Kerrow said.