Auditor-General reveals resource wastage at port

Kenya Ports Authority (KPA) management last year paid salaries in excess of Sh312 million for hours not worked in wanton waste of resources at the port.

Auditor General Nancy Gathungu revealed the details in a new report on the national government’s books of accounts for the year ending June 30, 2020.

Gathungu said the authority’s financial statements comprehensive income reflected expenses amounting to Sh19.5 billion, which were unsatisfactory, given that it constituted basic salary of Sh7.5 billion as part of the amount paid as hours clocked.

“Audit review of the records reveals that basic salary was paid based on the hours worked as clocked in the time management system. However, the management approved payment for hours not worked when staff came to work late and when the staff left work before time in calculating basic pay for staff. This resulted in payment of salaries amounting to Sh312 million for hours not worked,” read the report in part.

Time management records provided for audit review indicated 239 employees were absent for a continuous period of more than 10 days each resulting in 78,456 man hours being lost on absenteeism. Employees were however paid their full salaries and allowances totalling to Sh36.8 million, contrary to KPA human resource manual which requires payment of salaries based on actual hours worked. It also calls for stoppage of salary to employees absent for a continuing period of 10 days.

Further, recruitment documents provided for audit review revealed that the authority engages five employees in management positions whose employment terms were revised without the board’s approval after the employees had accepted the employment offer. The Nancy Gathungu report further said this resulted in payment of salaries and allowances amounting to Sh2,014,362 over the amount set in the employment letters, contrary to minimum entry points for various grades.“Consequently, the propriety and validity of basic salaries of Sh19.5 billion could not be confirmed,” the reports noted.

Overtime allowances

They established that KPA paid overtime allowances amounting to Sh2.4 billion including Sh79.8 million paid in respect to overtime allowances approved and paid in excess of the 30 per cent and 20 per cent for operations and administrative employees respectively. The authority also included in overtime allowances another Sh384 million relating to third-shift allowances.

“However, review of payroll records indicated that the third-shift allowances paid were calculated at a rate of 3 per cent of basic pay for every day worked resulting to a payment of Sh54 million. This is contrary to the collective bargaining agreement of 2018/2019,” said the AG.

On alienated properties, the report stated that information provided for review indicated that 29 parcels of land belonging to the authority had been invaded by the private individuals and companies.

“The management indicated that third parties had purportedly acquired ownership rights over the properties and undertaken initiated development thereon. However the Authority had filed suits in various courts of law which are still pending for determination,” the report stated.

”Out of the 29 properties, only nine properties valued at Sh755,100,000 were included in the Authority’s fixed assets register while 17 properties valued at Sh 732.5 million and three properties of unknown value were not included.”