Foreign bank accounts rule must apply to all officials

Opinion and Analysis

 

Consolidated Bank building on Koinange street, Nairobi. The Treasury is set to inject Sh500 million into the bank to boost its capital base. PHOTO | SALATON NJAU

By BUSINESS DAILY

The Ethics and Anti-Corruption Commission (EACC) has published a new code of conduct that requires State officers working for it to declare any bank accounts held outside Kenya. This is a positive step in trying to end graft among public officials who may take advantage of their positions to accrue illegal wealth.

Overseas accounts have for decades been used as conduits through which money stolen from public coffers are diverted for personal gains at the expense of taxpayers.

The present laws offer hope for ending this kind of rot and we must take advantage of them and hold all State officers to account.

Article 76(2) of the Constitution prohibits State officers from maintaining a bank account outside Kenya except in accordance with an Act of Parliament or seek or accept personal loan or benefit in circumstances that compromise their integrity. This is buttressed by Article 19(1) of the Leadership and Integrity Act of 2012, which says a State officer shall not open or continue to operate a bank account outside Kenya without the approval of the EACC.

The Act further opines that a State officer who has reasonable grounds for opening or operating a bank account outside Kenya shall apply to the commission for approval to open or operate a bank account.

In addition, the Act says, State officer who operates or controls the operation of a bank account outside Kenya shall submit statements of the account annually to the EACC and shall authorise the commission to verify the statements and any other relevant information from the foreign financial institution in which the account is held.

The move by EACC offers a chance to reinforce integrity among State officers and we urge other public institutions such as Parliament to walk a similar path and put in place rules and regulations on foreign accounts.

Poor enforcement of laws and regulations has been our weakest point as a country and we must work to change this habit immediately. Lethargy in law enforcement gives crooks a window to continue plundering the country’s resources and stash them abroad.

We must rise to the occasion and walk- the- talk by having every State officer account for any wealth held abroad.

Theft of public resources must not be tolerated, especially when the country is still reliant on donor support to bridge budgetary shortfalls. Public resources must serve their intended purpose and not be used to satisfy the selfish needs of individual State officers