An internal audit in Siaya County unveiled payroll irregularities and attempted frauds that led to substantial financial losses.
The audit, commissioned by County Executive for Finance Benedict Omollo, revealed attempted payroll frauds of Sh5.4 million in December 2022 and Sh2.5 million in March 2023.
The irregularities involved the manipulation of payment schedules, raising concerns about internal controls.
The audit highlighted unsupported payments totalling Sh9 million from the salaries control account, prompting questions about their origin and authorization.
Director of Internal Audit William Ooko noted that salaries debited to the suspense account amounted to Sh86.2 million, with no supporting documents.
Irregular promotions
The audit raised concerns about selective or irregular promotions, suggesting a potential financial loss of Sh10.2 million due to a lack of documented support from the County Public Service Board.
Reviewing pension contributions and supporting schedules, the audit found unsupported contributions of Sh180,390 related to voluntary contributions.
The audit also identified Sh80,000 in voluntary gratuity contributions that were paid but not deducted from officers’ pay.
County Executive for Governance Agunda Ochanda announced that corrective measures, including recoveries and sanctions, are underway for irregular promotions.
Ochanda stated that discussions with the bank are ongoing to address the alleged debt of Sh86.2 million.
The audit report underscores the importance of robust internal controls in safeguarding public funds and preventing irregularities.
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