Official signed ghost payments ‘illegally’

A National Youth Service senior official suspended for his alleged role in the loss of Sh791 million was irregularly authorised to pay suppliers involved in scandal, MPs heard Thursday.

Former senior deputy director-general Adan Harakhe was made an authorised signatory to approve payments to suppliers in the Integrated Financial Management Information System (Ifmis) one month before a letter from former Devolution principal secretary Peter Mangiti formally appointing him.

Ifmis director Jerome Ochieng, who appeared before the Public Accounts Committee (PAC), was at pains to explain how Mr Harakhe was listed as one of the three officials with authority to incur expenditure, in a letter from Ifmis to the NYS director-general, before the official authorisation.

Kieni MP Kanini Kega said a letter from Mr Ochieng on January 30, 2015 indicated that Mr Harakhe, former NYS director-general Nelson Githinji and head of finance Samuel Midanyi were the signatories before Mr Mangiti’s letter on February 19 had been sent.

Mr Ochieng said he was not aware of the letters, which, according to Mr Kega, had been presented before the committee by Mr John Munywoki, a Devolution ministry official, who had previously appeared before PAC.

The Ifmis boss also told the committee that it was Mr Harakhe who approved the payments — totalling Sh761 million — to three companies, leading to loss of funds as the firms were found to be fictitious and there was no evidence that supplies were made, according to a special audit by the Auditor-General.

MPs questioned the capacity of Ifmis to stem corruption in government transactions after it emerged that there were no checks to ensure it was not abused.

PAC chairman Nicholas Gumbo (Rarieda MP) ordered a special audit of the Ifmis.