Economy

Ex-directors of CA to return Sh1.2m X-mas shopping pay

ca

Communications Authority of Kenya offices in Nairobi. FILE PHOTO | NMG

Parliament wants 12 former Communications Authority of Kenya (CA) board members to each refund Sh100,000 received as Christmas shopping vouchers in the year to June 2017.

The National Assembly’s Public Investment Committee (PIC) has directed Mercy Wanjau, the acting CA director-general, to also surcharge the Universal Service Advisory Council members who were given Christmas shopping vouchers worth Sh900,000.

“The current director-general should surcharge those who were paid irregular allowances identified by the office of Auditor-General,” Abdulswamad Nassir, who chairs PIC, said in the latest report on audited financial statements for 48 State corporations.

Former Auditor-General Edward Ouko flagged the irregular expenditure in the CA’s books of accounts for the year 2016/17, saying the payments totalling Sh2.1 million were made without the approval of the parent ministry and the Treasury.

The CA spent Sh47.2 million in the year to June 2017 in directors' expenses. Appearing before PIC to respond to the audit queries, Ms Wanjau told MPs that the Kenya Information Communications Act (KICA) Act 2012 gives the board a mandate to pay salaries, allowances and other charges to the authority’s staff and directors.

But PIC said payments to directors must still be set by the Salaries and Remuneration Commission (SRC).

“The committee observed that as much as the law allows the board to prepare financial statements to remunerate themselves, the Salaries and Remuneration Commission (SRC) is mandated under the Constitution and the SRC Act to determine or set such remunerations,” Mr Nassir said.

The former CA directors could face further surcharges should the High Court find that they benefited from irregular disposal of MacBook laptops and iPads.

The audit revealed that the gadgets were unprocedurally disposed of to individual directors.