Forensic audit mandated for Meru Polytechnic concerning missing Sh120m
Members of Parliament have mandated a forensic audit of Meru National Polytechnic in light of 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 accountable individuals after uncovering that certain employees received triple salaries while others shared identification information.
During a session with Chief Principal Secretary Anderson Mutembei, who came to address Auditor General Nancy Gathungu’s findings, MPs characterized the circumstances as fraudulent and pledged to conduct a comprehensive investigation. Even though the Sh12 million system is flawed, the institution persists in paying an annual maintenance cost of Sh800,000.
The committee’s vice-chairperson Anthony Kibagendi remarked: “We must perform a forensic audit on this system. There are numerous procurement concerns. We expect the institution and auditor general to reconcile everything and present a report within a fortnight. ”
Kibagendi urged that at the forthcoming meeting, Mutembei should bring previous principals, system vendors, verified bank statements of those receiving multiple salaries, the executed contract, and all senior executives.
Imenti MP Moses Kirima queried the total sum lost and the manner of errors when information was entered manually. Kiminini MP Kakai Bisau asked how one staff member was able to receive payments from different bank accounts.
The audit findings highlighted alarming issues: four employees possessing duplicate or absent KRA PINs, 17 workers with suspicious birthdates (some under 18 years old), and 143 employees with dubious contracts, including one spanning 33 years.
Furthermore, Sh1. 4 million was disbursed to an officer assigned to a subordinate role who continued receiving a higher salary.
Mutembei defended the institution, asserting that some mistakes like birthdates were rectified, while other procedures reverted to manual systems.
He recognized the issues with the system, expressing: “These mistakes were rectified. The system has presented us with significant challenges, which is why we’re in the process of acquiring a new ERP system. ”