Sh63.1b paid out as pension irregularly, Ouko reveals

Friday, August 9th, 2019 00:00 | By
Former Auditor General Edward Ouko. Photo/FILE
Former Auditor General Edward Ouko. Photo/FILE

The government may have lost billions of shillings in money paid out as pension.

Yesterday, the Auditor General Edward Ouko released a new report querying Sh63.1 billion paid out as claims.

In a report tabled in the National Assembly, Ouko said  the payments were found to be irregular following sample field visits done by his officers during the period between  July and  September last year.

“From the foregoing, the accuracy of the reported expenditure on payment of pensions of 63,170,121,740,” reads the report.

The money includes monthly pensions amounting to Sh58.6 million that was said to have been paid to Asian and European officers who retired due to africanisation of the public sector after independence in 1963.

Authentic payment

According to Ouko he could not confirm the payment as no individual files were made to authenticate the payments, adding that their life certificates were not availed to confirm that the pensioners are still alive as required by the pension department internal controls before payments were affected.

In addition, he also raised concerns that payments amounting to 27.3 million were made to deceased persons out of which an amount of  Sh12.5million relates to repeat payments made to deceased persons accounts even after being returned by the receiving bank. 

Further he also raised concerns over monthly pensions amounting to Sh20.7 million that was paid to pensioners and dependents who could not be traced at their indicated areas of residence as as per department of pension’s records and physical verification with the government administration representatives.

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