County governments across Kenya have come under fire for paying Sh3 billion in salaries outside the approved payroll systems in the first quarter of the 2023/2024 financial year, raising concerns about transparency and the potential for abuse.
This alarming revelation comes from a report by the Controller of Budget, Margaret Nyakang'o, who found that counties continue to cling to the outdated manual payroll system, ignoring the government-mandated Integrated Personnel and Payroll Database (IPPD).
This antiquated method, riddled with vulnerabilities, has plagued public finances for years, allowing for the phantom figure of "ghost workers" to siphon off billions of shillings annually.
Homa Bay County stands as a stark example of the problem, with a staggering Sh240.85 million in wages – a quarter of its total payroll – disbursed through the manual system.
This raises serious questions about the county's commitment to financial accountability and its potential vulnerability to fraudulent activities.
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While Homa Bay's reliance on the manual system is significant, it is not an isolated case.
Garissa County also processed Sh143.8 million through the archaic method, while Wajir County paid out Sh88.21 million in the same manner.
These instances, along with likely others yet to be uncovered, paint a worrying picture of widespread non-compliance with government regulations.
The excuse most counties offer for clinging to the manual system is the lack of personal identification numbers for their staff, a requirement for using the IPPD.
This explanation, however, rings hollow when considering the government's directive for all counties to migrate to the IPPD by October 2022.
The delay in acquiring these numbers raises suspicions of deliberate foot-dragging, perhaps motivated by a desire to maintain control over a system ripe for manipulation.
Nyakang'o, the Controller of Budget, has called upon county governments to expedite the process of acquiring staff personal numbers and swiftly migrate to the IPPD.
"Counties are advised to fast track the acquisition of personal numbers for their staff to facilitate use of the IPPD system," Nyakang’o's report stated.
She emphasizes the illegality of using the manual system and its potential for financial haemorrhaging, highlighting the increased vulnerability to abuse and the loss of public funds.
The continued use of the manual payroll system is not merely an administrative oversight; it is a breach of public trust and a threat to financial integrity.
The Sh3 billion paid outside the system in just three months is a stark reminder of the scale of the problem and the urgency with which it needs to be addressed.
County governments must act swiftly to implement the IPPD and ensure transparency and accountability in their payroll practices.
Only then can they truly serve the needs of their citizens and safeguard public funds from the lurking shadows of ghost workers.
