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The development comes even as it emerged that the county has a bloated wage bill that is eating into development
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West Pokot spent Sh2.47 billion on payment of wages and salaries, which accounts for 39 per cent of the total revenue (Sh6.32 billion) it received during the year under review.
Image: MARYANN CHAI
West Pokot government paid Sh44.80 million as ‘golden handshake’ for 89 workers it hired and later sent home without providing services, a new report has shown.
The report by Auditor General Nancy Gathungu says the 89 people were among 102 hired to positions that had not been declared vacant.
“The new employees were not immediately put in the payroll due to budgetary constraints as the recruitment was not budgeted for,” the report says.
The financial audit report for the year ended June 30 last year was tabled in the Senate.
Further, the positions filled by the officers had not been declared vacant and application invited through advertisement contrary to the law.
Later, the county terminated the contracts, paying some 89 of them Sh44.8 million leading to loss of public funds.
“Integrated Payroll and Personnel Database for the month of June last year revealed that 89 of the officers were paid Sh44.8 million as arrears for the 12 months accumulated salary they were not paid during the year and as golden handshake for termination of the contracts,” the report says.
The development comes even as it emerged that the county has a bloated wage bill that is eating into development.
West Pokot spent Sh2.47 billion on payment of wages and salaries, which accounts for 39 per cent of the total revenue (Sh6.32 billion) it received during the year under review.
This is contrary to the provisions of Regulation 25 (1) (a) and (b) of the Public Finance Management (County Governments) Regulations, 2015.
The regulation provides that compensation of employees (including benefits and allowances) shall not exceed 35 per cent of the equitable share of revenue raised plus other revenues generated by the county government.
Gathungu also flagged the county for paying for non-compliance with one-third of basic salary rule.
During the year that ended June 30 last year, 22 employees earned a net salary less than a third of the basic salary contrary to section C.1 (3) of the Public Service Commission Human Resource Policies, 2016.
The policy provides that public officers shall not overcommit their salaries beyond two-thirds of the basic salary, which may expose the staff to pecuniary embarrassment.
The county, the audit reveals, has not remitted in excess of Sh92.54 million to pension schemes – Lapfund and Laptrust.
The amount includes dues for officers still in service and those who have since exited the service.
“Management did not provide satisfactory explanation on why the amount has remained outstanding contrary to Section 53 A (1) (3) of the Retirement Benefits Act, Revised Edition 2022 (1997),” the report reads.
Gathungu says the county is also grappling with Sh174.20 million worth of pending bills.
Besides, the county government has an accumulated outstanding tax of Sh249.03 million, which is not disclosed in the pending accounts payables.
“Failure to settle pending bills during the year in which they relate distorts the financial statements and adversely affects the budgetary provisions for the subsequent year as they form a first charge," the report says.
"This also exposes county executive to risk of avoidable litigation costs, penalties and interest.”
The report further reveals that the county failed to implement 24 projects worth Sh61.47 million during the year under review.
“The underperformance in project implementation affected the planned activities and may have impacted negatively on service delivery to the citizens,” the report says.