Kenya announces reforms after uncovering a $48 million payroll fraud.

Kenya announces reforms after uncovering a $48 million payroll fraud.

A random audit of twelve government ministries and agencies uncovered decades of irregularities, including unauthorized changes, irregular payments, and significant oversight gaps, according to a cabinet statement. The fraud under investigation amounts to approximately 6.2 billion Kenyan shillings (approximately $48 million). The irregularities were discovered during a special audit of 12 of a total of 53 government ministries and agencies. The investigation revealed serious deficiencies and criminal activity within the government: - “Ghost workers,” whose salaries were paid to fictitious individuals or people without valid employment contracts. - System manipulation, where unauthorized changes were made to payroll records to artificially inflate salaries. - Cashback schemes: In some government agencies (such as the National Museum), up to 80% of the salaries of bogus employees were being funneled directly back into the private accounts of senior finance and IT staff. In direct response, the government, led by State House in Nairobi, has adopted a comprehensive package of measures: - The Directorate of Criminal Investigations (DCI) has been tasked with prosecuting the networks behind the salary manipulations and rigorously recovering the misappropriated taxpayer funds. - The government has mandated the nationwide implementation of a completely redesigned, digital Integrated Human Resource and Payroll System to prevent unauthorized access and manual changes. - Payroll audits will be extended to all remaining government departments and subordinate agencies to completely eliminate bogus employees from the payroll. - In addition to payroll reforms, the leasing of further government offices was frozen as part of austerity measures, and an efficiency review of existing government properties was ordered. Other Cabinet decisions (see explanation): - Infrastructure & Water: US$127 million approved for the completion of the Mwache Dam; funding released for key road sections along the Isiolo-Mandera Corridor. - Energy Cooperation: Oil agreements with Rwanda and South Sudan to increase fuel transit were confirmed. - Healthcare: The US$35 million Mother and Child Initiative for ten hospitals was approved; a framework plan to combat HIV, malaria, tuberculosis, and emerging infectious diseases was adopted. - Industrialization: The US$44 million leather industry value chain project to create 120,000 jobs was approved; the national cotton, textile, and apparel policy was adopted. @https://www.kenyans.co.ke/news/124806-cabinet-directs-dci-investigate-suspected-ksh62-billion-government-payroll-fraud