Telecoms regulator on the spot over hefty allowances

Corporate News

The Communications Authority of Kenya offices in Nairobi. PHOTO | FILE 

By DAVID HERBLING, hdavid@ke.nationmedia.com

In Summary

• An internal Communications Authority of Kenya (CA) report shows that board members have not paid back imprests amounting to Sh8.2 million that were spent without any supporting documents.
• A breakdown of the allowances figures shows some CA board members pocketed up to Sh1.4 million in allowances within the five months, with some getting up to Sh240,000 for attending a single overseas trip.     
• Board members are also paid a minimum of Sh20,000 for attending Press briefings, retreats and team building.

The Inspector-General of State Corporations has opened investigations into hefty payments of imprests and allowances amounting to millions of shillings made to the Communications Authority of Kenya (CA) board members without supporting documentation.

An internal CA report shows that board members have not paid back imprests amounting to Sh8.2 million that were spent without any supporting documents.

Yet another report shows that the regulatory agency’s directors pocketed Sh11.9 million in sitting allowances in only five months to November. This attracted the attention of the State Corporations Inspectorate Unit, which on January 14 moved in to conduct a management audit on the agency.

A breakdown of the allowances figures shows some CA board members pocketed up to Sh1.4 million in allowances within the five months, with some getting up to Sh240,000 for attending a single overseas trip. 

Board members are also paid a minimum of Sh20,000 for attending Press briefings, retreats and team building.

CA director-general Francis Wangusi confirmed the ongoing audit, which he said could take more than a month to conclude.

“If there are any anomalies they will point them out,” said Mr Wangusi. “They’re meeting with the board and staff.”

The State Corporations Advisory Committee (SCAC) told the Business Daily that it had ordered investigations into the CA’s books, including board expenses, unpaid imprests and a schedule of all meetings held by directors.

The Inspector-General has powers to surcharge amounts embezzled by individual directors of State-owned entities.

“The Inspector-General (Corporations) shall have power to surcharge the amount of any expenditure so disallowed upon the person responsible for incurring or authorising the expenditure,” reads section 19(1b) of the State Corporations Act.

The audit at the communications regulator follows complaints over use of taxpayer money to fund a lavish lifestyle for the CA’s 13-member board of directors.

“The board is having so many meetings so that they earn allowances. They sometimes meet to do routine work that should be done by management,” said a source at the CA who requested anonymity.

Directors at the CA earn a sitting allowance of Sh20,000 for every meeting or official function attended and a per diem allowance of Sh13,000 per day for local travel outside Nairobi and $400 per day for foreign travels.

The directors are further entitled to lunch allowance of Sh2,000 per sitting.

The CA is one of Kenya’s most cash-rich State agencies, collecting billions of shillings in licence fees from telecommunication firms.