MPS now want University of Embu vice chancellor to pay Sh3.8 million for committing the institution’s funds without relevant approval.
Prof Daniel Njiru was found to have – without approval – diverted millions meant for implementation of the Collective Bargaining Agreement into other uses.
The university boss was also in breach of the law when he authorised over expenditure in the university without Council’s approval.
The issues were captured by Auditor General Nancy Gathungu in her audit report for the financial year 2013-14.
Parliamentary Investment Committee on Governance and Education chairman Jack Wamboka directed that the fine be paid by the vice chancellor on his capacity as an individual and not from the varsity’s coffers.
“It cannot be that the Vice Chancellor decides how much to spend and how much not to spend, without approval. You have no such powers to change what the money was meant for,” Wamboka said.
“We flag you for excessively being incompetent and abuse of office, the committee surcharges the VC an amount which is Sh3.8 million payable in six months.”
However, in his response, Njiru said they got verbal approval to use the money for refurbishing the institution’s infrastructure.
“Since the university was newly established and had no arrears to settle, these funds were reallocated to other budget votes through a budget review and utilised to refurbish the dilapidated facilities inherited from its predecessor, Embu Agricultural Staff Training College,” the VC said.
According to the report, the institution, then a constituent college of University of Nairobi received funds for the CBA implementation from the Education ministry.
“Collective Bargaining Agreement (CBA) outstanding balance of Sh81.5 million had not been refunded back to the Ministry of Education as previously directed as at time of audit,” the report said.
According to the law, the university ought to have refunded the money to the parent ministry instead of diverting it to another use.
The university was also found to have flouted the law on wage bill, with the institution found to have 54 per cent of its revenue going to employees’ remuneration.
During the year under the review, the university spent Sh786 million relating to employee costs which translates to 54.9 per cent of the institution’s total revenue of Sh1.4 billion, contrary to the law.
The Wamboka committee also sent away University of Nairobi officials for appearing without requisite documents.
The university, it emerged from the committee, submitted documents to the Auditor General hours before appearance.
The Committee fined the university management Sh500,000 for filing late responses.
