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Governor on the Spot Over Multimillion County Funds Misuse

EditorBy EditorSeptember 16, 2025No Comments3 Mins Read
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Governor Paul Otuoma Questioned Over Misuse of Millions in County Funds

Busia County Governor Paul Otuoma faced tough questions on Monday after he appeared before the Senate County Public Accounts and Special Funds Committee.

The governor was summoned to explain the misuse and mismanagement of millions of shillings in county funds, as revealed by the Auditor General’s Report for the 2023/2024 financial year.

Busia Senator Okiya Omtatah, who was present during the session, highlighted several areas where county money had either been misused, underperformed, or handled in ways that raised serious accountability concerns.

According to him, the report painted a disturbing picture of how public resources were being managed in Busia.

However, Omtatah expressed deep dissatisfaction with the manner in which the meeting was organized. He claimed his office had not been informed about the session despite his constitutional duty under Article 96 to represent and safeguard the interests of Busia residents.

“Earlier today, I attended the Senate County Public Accounts and Special Funds Committee meeting with Busia County Executive led by Governor Paul Otuoma on the Auditor General’s FY 2023/2024 Report for Busia County,” the senator said.

“Shockingly, my office was not informed of this critical meeting, despite the Constitution mandating me to protect the interests of Busia people. This is a serious oversight that raises questions about transparency and accountability.”

Mismanagement of Millions in County Funds

At the heart of the grilling were findings from the Auditor General that revealed systemic abuse of public funds. One of the biggest issues raised was the misuse of cooperative loans amounting to Ksh54 million.

The report indicated that these loans had been advanced illegally, without any form of security or clear recovery procedures. Omtatah alleged that instead of supporting economic growth, these cooperatives were being turned into channels for laundering taxpayers’ money.

The Auditor General also flagged the Climate Change Fund, which was found to have underperformed by a staggering 90 per cent. This fund was meant to support environmental resilience and climate adaptation projects, but the lack of results showed poor management and possible diversion of resources.

In addition, the Alcoholic Drinks Control Fund raised alarms after revenue was found to have been diverted unlawfully. The money was also not remitted to the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA), further pointing to irregularities in the management of county resources.

Another major concern was the Public Officers Revolving Fund, which held Ksh199 million. The report noted several irregularities in the way it was run.

These included operating without budgets approved by the County Assembly, underperforming by 25 per cent, and failing to insure vehicles and properties financed through the loans. According to Omtatah, this negligence exposed taxpayers to massive financial risks.

Calls for Accountability and Investigations

In light of these findings, Senator Omtatah urged the Senate committee to hold the governor and his administration accountable. He called for the matter to be forwarded to the Ethics and Anti-Corruption Commission (EACC) for further investigations.

“These findings confirm a worrying trend where county funds are being run without proper legal frameworks, reports are hidden from the public, and the Public Finance Management Act is openly violated,” he said.

Omtatah insisted that the Senate must demand full accountability, push for prosecutions under the Anti-Corruption and Economic Crimes Act, and compel the County Treasury to establish clear and lawful structures for managing all county funds.

“Busia residents deserve nothing less than full transparency and proper protection of their resources,” the senator emphasized.

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