Millions held in ‘secret’ accounts, claim MCAs

The Embu County government has been operating 19 secret bank accounts, which could have been used to pilfer millions of public funds, a county assembly committee report has revealed.

The Public Accounts and Investments Committee report states that the accounts have a total balance of Sh519 million.

The MCAs reported on the findings of the Auditor General on the financial statements of the county executive for the year ended June 30, 2017.

In the report, committee chairman Phillip Nzangi says the suspect accounts were opened and are being operated in violation of the Public Finance Management Regulations (County Government) 2015.

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“In the circumstance, the County Executive was in breach of the law and had not explained any reasons for the anomaly,” reads the report.

The committee also unearthed two revenue accounts at Runyenjes Level Four Hospital, which it says are currently being operated by “strangers”, since the said signatories had been moved to other departments and or counties. Nzangi told the assembly that the signatories had made unexplained and unsupported withdrawals from the accounts amounting to Sh34.8 million and Sh11.5 million.

He said the committee established that one of the hospital’s administrators was the banking agent for the two accounts and his only duty was to access the statements.

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A certificate of balances indicated the two accounts had credit balances of Sh554,289.68 and Sh15,814,210.99 as at July 24, 2019, which was undeclared to the county government.

The MCAs said patients had missed essential services while colossal amounts of money were secretly stashed in bank accounts.

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The report recommends that former Health Accountant Ruth Ndirangu, former Medical Superintendent Anthony Mulu, former County Director of Finance Edwin Rugendo, former Director for Health Administration Anthony Mugendi and former Health Accountant Musalia Eric who are still signatories to the suspect accounts be investigated.

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Embu CountyPublic Accounts and Investments CommitteeMCAs