CA orders fresh allowances audit as Matiang'i declines to intervene

 

In Summary

• CA board has recently faced serious criticism after an internal report revealed that senior executives spent Sh307 million on travel allowances last year.
• The telecoms regulator has sent Peris Nkonge, finance director and Juma Kandie, human resource director, on compulsory leave for refusing to provide information to CA board audit committee.

By LILIAN OCHIENG
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ICT Cabinet Secretary Fred Matiang’i has washed his hands over financial troubles gripping the Communications Authority of Kenya, saying the matter rests with the board of directors.

“I want to let the institution deal with their issues as an independent institution, at a time when my role will be required, I will play my role,” said Dr Matiang’i.

The CA board has been engulfed in a storm following revelations by an internal report that senior executives spent Sh307 million on travel allowances last year.

The report came at a time when the board members are facing several court cases questioning their legality. The office of the ombudsman is also investigating irregular issuance of allowances at the board.

FRESH AUDIT ORDERED

“We are putting in place mechanisms to ensure that the trouble at the CA comes down, we have ordered a fresh financial audit that will reveal the true picture of the Authority’s expenditure,” said CA board chairman Ben Ngene Gituku on phone.

The telecoms regulator has sent Peris Nkonge, finance director and Juma Kandie, human resource director, on compulsory leave for refusing to provide information to CA board audit committee.

CA stated that the report in question was meant to furnish management and the board with information about the potential risks that may arise from the management of local and international travels.

In a statement, CA Director-General Francis Wangusi said, “the allowances payable to staff on official duty when out of station are duly aligned with the Public Service rates. The applicable rates are contained in the Salaries and Remuneration Circular.”

The report stated that last year, staff at CA made 421 trips both local and overseas to attend conferences, field visits, training and workshops, most of which were unaccounted for.

Trouble has however persisted at the CA board even as an Airtel letter to CA revealed that Mr Wilbert Choge had attempted to seek a bribe.

BRIBE ALLEGATION

Airtel CEO Adil El Youssefi in the letter says that Choge openly solicited a bribe to influence the board not to push Airtel to pay Sh2.7 billion for renewal of its license.

Mr Choge together with his colleagues Mr Ken Nyaundi, Ms Grace Munjuri, Prof Levi Obonyo, Ms Hellen Kinoti, Ms Beatrice Opee and Mr Peter Mutie are purportedly in office against a court order that disbanded the entire board in May.

The board has been cited for contempt in a case that could see the entire board stripped off their duties again, stalling the regulator’s activities.

The application filed before the Court of Appeal on September 24 states that the seven members of the board at CA have disobeyed a court order that stayed the May disbandment order.

The matter has been termed urgent by the Court of Appeal and a hearing set for November 24.