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Economy

Ouko flags suspect Sh306 million KPC payments to staff

Edward Ouko
Auditor-General Edward Ouko. FILE PHOTO | NMG 

The Kenya Pipeline Company (KPC) is on the spot for spending millions of shillings on its staff in the year the Directorate of Criminal Investigations (DCI) arraigned its top officials over corruption.

KPC spent the millions on its staff in the year to June 2018 with Auditor-General Edward Ouko flagging expenditure of Sh306.9 million on payment of overtime allowances to 1,080 staff members.

“Of this amount (Sh306,955,912), Sh97,661,089 was paid contrary to the company’s staff rules and regulations to 231 staff who were earning responsibility allowances.

“In addition, overtime allowance payments totalling Sh171,919,296 made to 164 employees exceeded 25 percent of their respective annual gross salaries with 14 of the staff having drawn overtime allowances in excess of their annual salaries,” Mr Ouko said in a qualified audit opinion of KPC.

The audit shows that in some instances, the annual overtime allowances paid were as high as 250 percent of annual gross salaries payable, implying that the claimants worked for more days than were available in the financial year.

“In the circumstances, it has not been possible to confirm the regularity and probity of Sh269,580,385 incurred on the allowances,” Mr Ouko said in a report tabled in Parliament by Leader of majority Aden Duale.

Mr Ouko also raised the red flag over KPC’s failure to adhere to the Salaries and Remuneration Commission (SRC) rules on subsistence allowances.

He said KPC made subsistence allowance payments totalling Sh509.6 million to travelling company staff during the year under review based on identical rates across towns for various job cadres contrary to rules issued by the SRC.

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