Forensic audit ordered for Meru Polytechnic over missing Sh120m

Forensic audit ordered for Meru Polytechnic over missing Sh120m

Members of Parliament have mandated a forensic audit of Meru National Polytechnic subsequent to the purported loss of Sh120 million due to payroll irregularities attributed to a malfunctioning Enterprise Resource Planning (ERP) system.

The Public Investments Committee on Governance and Education, chaired by Bumula MP Wamboka Wanami, is deliberating the imposition of surcharges on the individuals accountable after revealing that certain employees received triple salaries while others shared their identification details.

During a meeting with Chief Principal Secretary Anderson Mutembei, who appeared to address Auditor General Nancy Gathungu’s report, MPs characterized the situation as fraudulent and pledged to conduct a thorough investigation. Despite the Sh12 million system being defective, the institution persists in paying an annual maintenance fee of Sh800,000.

Committee vice-chairperson Anthony Kibagendi remarked: “We must perform a forensic audit on this system. There are numerous procurement issues. We require the institution and the auditor general to reconcile all matters and present a report within two weeks. ”

Kibagendi requested that at the next meeting, Mutembei be accompanied by former principals, system suppliers, certified bank statements of individuals receiving multiple payments, the signed contract, and all senior managers.

Imenti MP Moses Kirima questioned the amount of money that was lost and how errors arose during the manual entry of information. Kiminini MP Kakai Bisau probed how a single employee was able to receive salaries through various bank accounts.

The audit report disclosed alarming issues: four employees possessed duplicate or missing KRA PINs, 17 workers had dubious birthdates (including some who were under 18 years old), and 143 employees had questionable contracts, one of which extended for 33 years.

Furthermore, Sh1. 4 million was disbursed to an officer assigned to a lower position who continued to receive a higher salary.

Mutembei defended the institution, asserting that certain errors, such as birthdates, were rectified, while other processes reverted to manual systems.

He conceded to the system’s difficulties, stating: “These errors were corrected. The system has presented us with significant challenges, which is why we are in the process of procuring a new ERP system. ”