The office of the Auditor General Nancy Gathungu has flagged Sh20billion irregular payments by the Nairobi county for the period that ended in June 2023.
In her report, Gathungu indicted the Nairobi governor Johnson Sakaja’s led administration citing unexplained expenditures in form of double payment of salaries and allowances.
The report exposes the rot in the county payroll with three county employees sharing a bank account and double payments of allowances and salaries.
Gathungu indicated that three employees of Nairobi County have one bank account while four officers in the county are active in the payroll but have no salaries while two employees were employed on a permanent and pensionable term while they were aged above fifty years.
“Review of the payroll for the period that ended June 2023 shows that three County employees of Nairobi of ID number XXX share one bank account. Four of the county officers are also active on the payroll but do not have salaries.” The audit report shows.
“Further, payroll entry dates for employees shows two officers were employed on a permanent and pensionable terms while their ages were over and above fifty years of age.” It added.
Nairobi county incurred a loss of Sh15,423,116 after 178 employees were paid leave allowances twice with an irregular payment of allowances under consolidated pay to twenty-six officers totaling to Sh17,584,187 as an allowance of basic pay, house supplementation among others.
The report also indicates that the county also paid more than Sh100 million to 459 employees for allowances that could not be determined in what could have led to loss of public money.
A review of the report by The Informer Media Group also indicates that Nairobi county has officers who earn less than a third of the basic salary pay which contravenes Part C. 1 (3) of the Human Resources Policy and procedure manual for the public Service 2016 that states that public officers shall not over commit their salaries beyond two thirds of their basic salary.
On compliance with the person’s living with Disability Act 2003, out of the 13,354 employees only 167 have been categorized as person’s living with disability which is less than 5 per cent as stipulated in the Act.
The County was also put on spot by the auditor general over failure of remittance of National Social Security Fund (NSSF) Pay As You Earn (PAYE) and National Hospital Insurance Fund (NHIF) with due totaling to Sh1,715,817,035.
Failure to remit statutory deductions on time contravenes the Income Tax Act, NHIF Act and NSSF Act which leads to the county being penalized and fined.
“Analysis of the payroll data availed for audit revealed that the county deducted PAYE, NSSF and NHIF totaling to Sh1,715,817,035. However, no evidence was submitted to indicate the deductions were remitted to the relevant authorities.” Gathungu stated.
Further, the regularity and proper management of the scholarships and bursaries in Nairobi City County cannot be confirmed.
According to the report, Forty-seven beneficiaries of Nairobi City County Executive Scholarships and Ward Bursaries are from different counties in the country and they received a total disbursement of Sh 2,504,313.
The report also revealed that a total of 25 students who are a beneficiary of the executive scholarships and ward funds came from private primary schools which is against the law and they received a disbursement of Sh 1,165,465.
“Analysis of data provided in support of disbursements indicated cases of issuance of both scholarships and ward bursaries to 683 beneficiaries totaling Sh32.03 million. Seventy-two students from other counties and private primary schools received a total of Sh 2,504,313 and Sh 1,165,465 respectively.” The report stated.
