September 19, 2024, Nairobi, Kenya — The Kenya Ports Authority (KPA) is under intense scrutiny following a review by the Office of the Auditor General, which has flagged several long-standing audit queries for the fiscal years 2019/2020 and 2020/2021. The KPA Managing Director, Captain William Ruto, appeared before the Public Investments Committee on Commercial Affairs & Energy at the Parliament Buildings in Nairobi to address these concerns.
The Committee, chaired by Hon. David Pkosing, questioned KPA’s handling of various issues, including irregular payments of staff allowances, the management of the Authority’s medical scheme, and employment policies. The Committee expressed frustration over the unresolved queries, emphasizing the need for thorough scrutiny of KPA’s human resource policies and financial management.
“Most of these questions pertain to the Human Resource Department and financial management,” said Hon. Pkosing. “We need a detailed examination of the KPA HR Policies and an audit of how funds are utilized within the Authority.”
One of the main issues highlighted was the expenditure on medical bills, which had not been supported by any policy. A specific case involved a medical bill totaling Kshs. 46,868,614 for an employee’s dependent. The Committee discovered that this expenditure was not in compliance with established policies.
In response, Captain Ruto explained that the KPA had suspended the application of certain provisions under the Kenya Ports Authority Human Resources Manual, 2017, as per Circular Ref HR/1/6/66 dated February 1, 2018. This suspension allowed for unlimited medical benefits for staff and their dependents, which led to the significant medical expenditure in question.
“There was a patient in the ICU requiring urgent medical attention,” Ruto said. “The policy suspension was in effect at the time, which allowed for the expenditure.”
However, the Committee noted a lack of evidence that the Authority had obtained Ministerial approval for these major alterations in the staff medical benefits, as required by Section 14 of the Kenya Ports Authority Act, CAP 391. This section mandates that the Minister must approve any significant changes in salaries, wages, or other employment terms.
The total medical expenditure under review amounted to Kshs. 564,015,000, raising further concerns about the Authority’s medical scheme management. The Committee also flagged inconsistencies in staff recruitment procedures and remuneration practices.
Hon. Pkosing directed KPA management to provide all necessary documents for a comprehensive review of the pending matters. The Committee aims to address these anomalies and ensure that KPA adheres to its policies and regulations moving forward.
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