The National Assembly Public Accounts Committee (PAC) has uncovered a fraud scheme involving public servants from the Ministry of Mining and Blue Economy.
These officials are accused of defrauding taxpayers by misusing daily subsistence allowances and imprest payments amounting to Ksh28 million.
During its scrutiny of the financial accounts for the State Department of Shipping and Maritime Affairs for the year ended June 30th, 2022, PAC identified significant discrepancies which included irregularities in payment vouchers and inaccuracies in the imprest register.
“Analysis of the payments made during the year for recurrent cashbook showed imprests paid to staff totaling to Ksh 28 million in respect of domestic travel and allowances,” reads the statement in part.
According to Auditor General Nancy Gathungu, the amount paid suggests that officers were in the field for more days than their work schedules could realistically accommodate, casting doubt on the legitimacy of the Ksh28 million in payments.
Mining Ministry Exposed Over Fraud
Principal Secretary for Shipping and Maritime Affairs, Geoffrey Kaituko, admitted that the report, covering the entire financial year, revealed that the payments made to the officers exceeded the actual number of days they worked.
“This suggests they were paid for more days than they actually served, possibly amounting to more than a year’s worth of payments,” Kaituko said.
Rarieda MP, Hon. Otiende Amollo, sought clarification, asking whether the PS agreed with the Auditor General’s findings as his response appeared to contradict the Auditor General’s statement and requested a correction.
“In very polite terms, the Auditor General is essentially stating that these claims were fraudulent. When they mention that the number of days claimed exceeds what was possible, they are indicating fraud. Aren’t we seeing fraud here?” Amollo posed.
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In his response, Kaituko stated that they would need to obtain the actual vouchers rather than just the samples presented.
He indicated that they would likely require a week to gather that information and present it to the committee.
How Ksh 28 Million was Spent
The PS clarified that the Ksh28 million in question was related to daily subsistence allowances and standing imprest payments.
He explained that Ksh14.2 million was issued to officers conducting various activities across counties in the Maritime Domain.
“Ksh 11.7 million was paid to officers carrying out field activities, while Ksh 2.1 million was allocated for tea and other office operations,” the PS explained.
Soy MP David Kiplagat questioned instances where significant amounts, such as Ksh2 million, were allocated by the Mining Ministry for questionable purposes, like sending people to look for tea in the streets.
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He suggested that a certain pattern was repeating itself, indicating a possible loophole within the system that was being exploited.
“There seems to be something suspicious happening within that loophole. It’s not that we expected the person to cancel and repeat transactions, but rather that there is likely a flaw in the system, and something questionable is taking place within that loophole,” he held.
MPs Call for Forensic Audit
Butere MP, Tindi Mwale, who chaired the session, on his part- questioned the legitimacy of the samples used to justify payments, suggesting they were inadequate and potentially fraudulent.
He pointed out specific entries where officers seemed to receive and surrender the same amount multiple times, indicating possible system errors or misuse.
Mwale challenged the head of accounts to clarify these inconsistencies and called for a forensic audit to identify the root cause of these recurring issues.
“We need public officers who are more sincere—those who won’t come and defend mistakes that are clearly evident to everyone,” said Mwale.
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