A human resource audit into payroll scams in Nandi County has been presented to the county assembly, amid concerns among employees about a potential freeze on salaries. The audit, aimed at addressing issues stemming from over 1,000 workers who were hired illegally, is part of efforts to tackle a significant wage bill crisis.
Majority Leader Walter Teno, the Kabiyet MCA, introduced the report, emphasizing the county’s urgent need to address its wage bill issues. “The county is facing a major wage bill crisis, and it’s crucial that the assembly takes action to resolve it,” Teno said.
Governor Stephen Sang, who forwarded the report to the assembly, has expressed a strong commitment to resolving the payroll crisis to free up resources for ongoing development projects. “We have taken the issue seriously as an assembly. We will work with the governor and other leaders to come up with solutions to the challenges we now face,” Teno added.
The MCAs are set to debate the report this week and propose measures to streamline hiring and payroll processes in the county executive. According to the audit, more than 1,000 employees were found to have been hired illegally, and they could potentially lose their jobs. The audit also revealed a significant payroll scam that inflated the county wage bill to over 65 percent of the budget.
Two weeks ago, Governor Sang suspended several payroll officers to facilitate investigations into alleged irregularities within the payroll management system, which had seen the number of employees rise to 4,430. The suspended officers have already provided statements to the Directorate of Criminal Investigations (DCI).
Some employees have expressed concern about a possible freeze on salaries as the county works to streamline its payroll. Governor Sang has directed that only properly hired staff will be paid, and those found to have received money illegally will be required to repay it. The county’s workforce should not exceed 3,000 employees, as noted by Auditor General Nancy Gathungu, who has previously raised concerns about irregular employment practices.
Sang’s actions followed a comprehensive audit report conducted by a technical team from the Public Service Commission, which exposed the issues within the county’s human resource and payroll management systems.
The audit report on Nandi County reveals serious issues within the county’s payroll system, including collusion between individuals in the Public Service Board and the payroll unit to issue irregular and fake appointment letters. “All these irregularities led to the issuance of fake appointment letters obtained through fraudulent means and which found their way into the payroll system,” Governor Stephen Sang stated.
The use of these fraudulent documents, including fake certificates, led to chaotic placement of employees into job groups and questionable promotions. In some instances, employees were promoted by up to four job groups in just two years without justification. Most of those affected are irregularly hired employees who are reportedly cronies or relatives of senior county officials.
The bloated workforce has caused congestion in county offices, such as the ICT office in Kapsabet, where up to 18 employees were found sharing a single desktop computer. The Star’s investigation found that many of the hired individuals lacked clear job descriptions and were covertly assigned as “social media warriors” to manage posts defending certain county officials.
In one notable case, a senior individual had employed eight of his relatives, including three brothers, a sister, and several cousins. Governor Sang, while releasing details of the audit, pledged to fully implement the recommendations of the Public Service Commission (PSC) to ensure the responsible use of public resources and address the runaway wage bill, which has hindered development efforts. This commitment aligns with the recommendations from the Salaries and Remuneration Commission discussed during the Third National Wage Bill Conference in April.
As the Directorate of Criminal Investigations (DCI) continues to question the suspended payroll workers, it has emerged that some individuals hired irregularly had “purchased” their positions, with bribes reaching up to Sh400,000. Sang has urged affected officers with irregular appointments to visit the complaints desk established in every department and explain how they obtained their appointment letters. “We are going to implement this report fully, and anybody who played a role in this flawed process will face the consequences,” Sang declared.
He said there were employees who moved two, three, four job groups in one year, while some have stayed in the same grade for more than eight years with no promotion.
Sang said the level of disparity and impunity that was perpetuated during the period in question will be addressed.
The governor said all the affected departments with appointment letters received un-procedurally and fraudulently have been expunged from the payroll.