The Parliamentary Public Accounts Committee has determined that a public university, among others, is facing serious financial challenges.
According to the committee report, the challenges are caused by mismanagement and delayed government capitation, which forces the institutions into debt.
However, an investigation into Pwani University has exposed some questionable expenses by the university management.
Pwani University Vice-Chancellor, Professor James Kahindi was out on the spot for paying staff honoraria of Ksh3,098,000 in cash outside the payroll system.
According to the Committee, the amount was paid without the Salaries and Remuneration Commission and without subjecting it to taxation.
“This emerged as the Public Accounts Committee conducted an inspection tour of the two oldest and largest institutions at the Coastal Region-Technical University of Mombasa(TUMs) and Pwani University,” the committee report read in part.
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Pwani VC Defends Himself
In response, the VC explained that the amount in question was not a single lump sum.
Further, he noted that it was a cumulative total related to a Ksh 2,000 lunch stipend that was given to members of the board of examiners.
According to Professor Kahindi, the payment fell within the nontaxable threshold as outlined in the university’s graduate supervision policy, and posed no tax liability under the policy’s guidelines.
Also, the VC called for the Intervention of the Committee over the issue of squatters and land grabbers encroaching on the institution’s land.
“The VC told the Committee that they had since acquired a title deed for the 600 acres under Pwani University.
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“He however expressed concerns that squatters have refused to vacate and had even gone ahead and buried their dead on the property,’ explained the report.
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Technical University of Mombasa VC on the Spot
On the other hand, TUM’s VC Professor Laila Abubakar was put on the spot over delayed submission of relevant documents for audit to the officers of the office of the Auditor General.
“This is contrary to Section 68 (2) (k) of the Public Finance Management Act which requires accounting officers to prepare financial statements for each financial year within three months after the end of the financial year,
“And submit them to the Controller of Budget and the Auditor-General for Audit, and in the case of a national government entity, forward a copy to the National Treasury.”
Additionally, the Committee learnt that Professor Abubakar had spent public money on the construction of various projects on land that is yet to be registered as property of the university.
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