Forensic audit ordered for Meru Polytechnic over missing Sh120m
MPs have mandated a forensic audit of Meru National Polytechnic following the purported loss of Sh120 million attributed to payroll discrepancies stemming from a malfunctioning Enterprise Resource Planning (ERP) system.
The Public Investments Committee on Governance and Education, led by Bumula MP Wamboka Wanami, is contemplating surcharging those accountable after finding that some employees received triple salaries while others used shared identification information.
During a discussion with Chief Principal Secretary Anderson Mutembei, who came to address Auditor General Nancy Gathungu’s report, MPs characterized the situation as fraudulent and pledged to investigate comprehensively. Even though the Sh12 million system has flaws, the institution still pays 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 challenges. We want the institution and auditor general to align everything and deliver a report within two weeks. ”
Kibagendi asked that at the forthcoming meeting, Mutembei bring in former principals, system suppliers, certified bank statements of those receiving multiple payments, the signed contract, and all senior managers.
Imenti MP Moses Kirima questioned the extent of the financial loss and how mistakes arose when data was entered manually. Kiminini MP Kakai Bisau asked how an employee could receive salaries through various bank accounts.
The audit report disclosed alarming issues: four employees had duplicate or absent KRA PINs, 17 workers had dubious birthdates (some under 18), and 143 employees had questionable contracts, including one spanning 33 years.
Additionally, Sh1. 4 million was paid to an officer assigned to a lower role who continued to receive a higher salary.
Mutembei defended the institution, asserting that some mistakes, such as birthdates, were amended, while other processes reverted back to manual systems.
He recognized the system’s issues, stating: “These errors were rectified. The system has posed significant challenges, which is why we are in the process of procuring a new ERP system. ”