The Controller of Budget revealed that Kisumu County government has failed to set up Ward Development Act and regulations guiding spending of funds.
According to the county assembly reports, Sh105 million was deposited in a bank and Sh52 million withdrawn.
Speaking during a meeting by Kisumu County committee at Joventure Hotel in Kisumu, the Kisumu representative Controller of Budget Stephen Otieno said their office is also not aware of any account opened for the ward development funds because they have not been officially communicated to concerning the matter.
“We have neither received any statement on the matter and am obviously shocked because the treasury has not released any amount for the fund,” he said.
The COB chair Agnes Odhiambo had written an advisory letter raising questions over the ward development fund, saying it lacked regulations and Acts guiding it making it hard to make any allocations.
Despite the advisory letter by the COB, the county government went ahead and opened an account at Family Bank in the name of the fund.
Otieno said Kisumu County has never shared any regulations pertaining the funds.
She said there is no county that has ever come up with a full proof regulation on the ward development fund and as per them the fund does not exist.
This was while appearing before a five-member committee investigating the alleged gross misconduct and abuse of office by the County Executive Member for Finance George Ongaya on Wednesday afternoon.
Ongaya has been accused of failing to implement the Ward Development Fund ACT 2014, failure to formulate regulations regarding smooth operation of legislated county funds.
The CEC is accused of failing to comply with section 116(4) of PFM ACT 2012, by illegally withdrawing funds meant for development amounting to Sh105 million and Sh52 million for recurrent expenditure.
The committee chaired by Kondele Ward representative solved to write a letter to the branch manager of family bank to send them certified copies to help in the probe.