Ways Governors Use to Steal County Funds

  • Investigations by the Ethics and Anti-Corruption Commission (EACC) have revealed some of the techniques that Governors are using to plunder county resources.

    In most cases, the county bosses reportedly use proxy companies which are owned by their relatives or trusted friends.

    This makes it hard to link the governors to scandals when they finally blow up.

    That said, let’s take a look at some of the ways governors are using to loot county coffers:

    1. Sole signatories

    Most counties have designated one individual, usually the governor, as the signatory of their official accounts. This is in clear contravention of the Public Finance Management Act of 2012.

    The governors then collude with bank officials who allow them to access county funds without the need to involve the other signatories.

    2. Paying for air

    Governors collude with people who demand payment from the county for work not done i.e. supplying air.

    The county bosses hasten the payment before questions are raised.

    The loot is then shared among those who organized the deal, including the governor.

    3. Out-of-court settlement scams

    Here, governors collude with county officials to sponsor cases in court against the County governments.

    As the case proceeds, the county officials ask for an out-of-court settlement through which large amounts of money exchange hands.

    4. Inflated tender prices

    This is one of the most common ways of plundering county funds. The governors often collude with county officials to markup the prices of items.

    More often than not, the increment is unreasonable like that time when Bungoma county officials purchased 10 wheelbarrows at Ksh1 million.

    5. Fake trips and meetings

    Another common way of stealing county funds is through fake trips and meetings.

    County officials plan fake trips and request allowances, including hefty per diems which gain entry into the accounting records as genuine expenditure.

    Various measures have been suggested to curb corruption in the counties. Some of them include; making corruption a capital offence, jailing the governors, hanging those who are involved in graft, but it only remain to be seen if any of these ideas will see the light of day.