- The Auditor General reveals how employees were irregularly paid a total of Ksh. 10,099,678 which were paid outside the IPPD system. Management did not justify the payment of salaries and allowances outside the payroll system. In the circumstances, the validity of amounts paid outside the IPPD system of Ksh. 10,099,678 could not be confirmed
Officers in the State Department for Infrastructure could soon find themselves behind bars following a revelation by the Auditor General that funds running into hundreds of millions have been misappropriated. According to the report, accounting officers forged expenditures for Ksh. 672,594,265 yet investigations revealed that payments did not relate to the expenses on items where they were accounted for and lacked supporting documents. Under investigation is an expenditure of Ksh. 6,426,032 described as journal imports that were not supported by any document.
The communications department is also on the radar over expenditure of Ksh.3,102,724 on Communication, supplies and services. But what has raised eyebrows is the expenditure of Ksh. 350,000 paid to staff in the communications department, it is not clear why they were paid and the list of officers who received the payments. Other fictitious payments include Ksh. 1,171,220 for foreign travel and subsistence and Ksh. 370,000 paid to staff. There is also expenditure on insurance costs of Ksh. 3,389,760 which includes unrelated expenditure described as the supply of blockboards amounting to Ksh. 928,800 and the purchase of toners amounting to Ksh. 2,460,960.
In the circumstances, the accuracy and completeness of the use of goods and services expenditure of Ksh. 672,594,265 could not be confirmed. Further, the statement of receipts and payments reflects the acquisition of assets amount of Ksh. 12,433,018,607. However, a review of records revealed that the following payments did not relate to the expense items where they were accounted for and lacked supporting documents for justification.
Construction of building expenditure of Ksh.186,311,102 includes an amount of Ksh. 47,035,513 incurred on the purchase of furniture, equipment, stationery and other items not related to this expenditure item. Refurbishment of buildings expenditure of Ksh. 91,021,541 which includes Ksh.56,640,147 described as journal import.
Construction of civil works includes an amount of Ksh.21,643,005 transferred to Kenya Wildlife Services which is a self-reporting entity. The amount should have been reflected as transfers to other government entities. In the circumstances, the accuracy and completeness of the acquisition of assets amounting to Ksh.12,433,018,607 could not be confirmed.
Employees were irregularly paid a total of Ksh. 10,099,678 which were paid outside the IPPD system. Management did not justify the payment of salaries and allowances outside the payroll system. In the circumstances, the validity of amounts paid outside the IPPD system of Ksh. 10,099,678 could not be confirmed. On Outstanding Imprests, the statement of financial position reflects outstanding imprest and advances balance of Ksh.3,855,969. However, a review of the bank reconciliation statements as of 30th June 2022 indicates that payments of Ksh. 44,318,901 were made to staff on 30th June 2022 but were not reflected as outstanding imprest as at the close of the year.
Also under investigation is failure to surrender temporary imprest. The financial statements reflect imprest and advances balance of Ksh.3,855,969 which includes the imprest issued on 5th January 2022 to two officers of Ksh. 3,441,924. The imprest was due for surrender on 1st February 2022 but had not been accounted for as of the time of the audit in November 2022 contrary to Section 93 of the Public Finance Management Regulations, 2015.
The state department has also failed to comply with the Approved Staff Establishment. A review of the human resource records indicated that the State Department had an approved establishment of 236 staff members across all cadres. However, the actual number of staff was 658 leading to an over-establishment of 424 staff.