NGO Board blames former employee for Ksh.3.8M fictitious payout
- Auditor General Edward Ouko had tabled a report in parliament which highlighted fraudulent salary payments, unconfirmed board expenses and irregular promotion of staff.
- Ouko had revealed that around Ksh. 3.8 million was paid as salaries to one account number using several fictitious names.
- He also noted that the Board had failed to remit Pay as You Earn (PAYE) tax deductions amounting to Ksh. 35.1 million and Ksh. 11.5 million in statutory contributions.
The Non-Governmental Organisations (NGO) Coordination Board has shifted blame to an ex-employee after it was revealed that Ksh. 3.8million was paid to ghost workers.
This follows a report in a local daily that said the money was paid as salaries to one account number using several fictitious names.
According to the newspaper report, Auditor General Edward Ouko tabled a report in parliament which highlighted fraudulent salary payments, unconfirmed board expenses and irregular promotion of staff.
He also noted that the NGO Board had failed to remit Pay as You Earn (PAYE) tax deductions amounting to Ksh. 35.1million and Ksh. 11.5million in statutory contributions.
Ouko further questioned the credibility of expenditure totalling Ksh. 5 million in payment of sitting allowances, per diem and mileage allowances, stating that Board expenses amounting to Ksh. 1million were not provided for audit.
On the same issue of Board expenses, the Auditor further argued that there were no signed registers and payment schedules to support payments, which is contrary to provisions of the Public Finance Management Act.
In a statement issued on Thursday, the Board’s executive director Mutuma Nkanata assured the public that the previous issues raised by the Auditor General are being dealt with.
“On the issue of money paid to ghost workers, it was actually paid fraudulently to one bank account using fictitious names by an accountant who is no longer our employee. The matter was reported to the Directorate of Criminal Investigations (DCI) and the accountant has already been charged in court,” Nkanata said.
“We wish to assure the Government, our stakeholders and the public that Board under the new Board of Directors appointed at the end of 2017/2018 financial year, has taken decisive steps to deal with issues raised by the Auditor-General,” he added.
Nkanata also noted that all detected irregular transactions had been reversed and that the Board has already requested the former Executive Director to provide minutes of meetings to support expenditure questioned by the Auditor General.
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