Report Exposes How County Underpaid Its Staff by 33% With No Medical Cover
Auditor General Nancy Gathungu has uncovered alarming discrepancies in human resource management within the Garissa County government, according to her latest audit report for the financial year ending June 2023.
Gathungu’s report, dated March 15, revealed significant breaches of law, including the payment of Ksh14.36 million to 140 employees who were over the mandatory retirement age of 60.
The findings shed light on irregularities that point to a systemic failure in governance and oversight.
Among the highlighted irregularities was the payment of special house allowances to 16 employees, which amounted to Ksh128,668, without approval from the Salaries and Remuneration Commission.
Additionally, 28 staff members were found to be earning below the minimum wage limit set by regulatory bodies, resulting in a total underpayment of Ksh1,813,959.
Furthermore, the audit uncovered that 35 employees were receiving net salaries less than one-third of their respective basic salaries, a clear violation of employment regulations as stipulated in the Employment Act of 2007.
One of the most concerning revelations was the lack of comprehensive staff medical cover for Garissa County employees.
Despite recommendations from the Salaries and Remuneration Commission, the County Government failed to procure and implement a group medical scheme, leaving thousands of employees vulnerable.
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“Review of the payrolls reflected 2,671 employees in the Integrated Personnel and Payroll Database system while 508 employees were in the manual payroll. However, the Management failed to procure and implement group medical cover for the staff for the year under review,” notes the report.
Ethnic imbalance within the workforce was also highlighted, with 77.5 percent of the employees belonging to the dominant ethnic community.
This stark deviation from the legal requirement outlined in the National Cohesion and Integration Act of 2008, which prohibits public establishments from having more than 30 percent of their staff from the same ethnic community, raised serious concerns about inclusivity and diversity in the workplace.
Moreover, the County Executive’s expenditure on employee compensation surpassed the recommended threshold, accounting for approximately 58.9 percent of the total revenue.
This violation of Regulation 25(1) of the Public Finance Management (County Governments) Regulations, 2015, states that the limit on the County Government’s expenditure on wages and benefits shall not exceed 35 percent of the county government’s total revenue.
The Budget and Appropriations Committee, headed by Kiharu MP Ndindi Nyoro, is interrogating the audit report by Nancy Gathungu and has been inviting governors to shed light on their expenditures.
Report Exposes How County Underpaid Its Staff by 33% With No Medical Cover