Kenya: We Are Not Paying Ghosts, Pensions Chief Tells Auditor

The Pensions Department has accused Auditor-General Edward Ouko of misrepresenting facts by saying Sh67.9 billion was paid to ghost retirees.

Mr Ouko, in a report tabled at the National Assembly two weeks ago, said individuals at the National Treasury may have taken advantage of the weaknesses in the Pensions Management Information System (PMIS) to authorise irregular payments.

Of the money paid out, some 962 claimants received Sh1.6 billion — which was made way before the end of their service dates — meaning they drew salaries despite getting their pension, the auditor said.

About 221,590 claimants with irregular or no tax PIN were paid Sh44 billion, some 7,166 others with irregular identity cards got an undisclosed amount, with 232 claimants having shared Sh152.8 million, according to the report.

Pensions director Shem Nyakutu says the report is a vote-of-no-confidence on his office, considering that he certified the payments “with a green pen”.

“We had time with the auditors and explained why certain things happened. Every claim we process for those who have died or retired is scrutinised by the Controller of Budget and the Auditor-General,” Mr Nyakuti said.

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