Cheats: Sh61m fake mileage claims by MPs rock Parliament
Parliament in session.
What you need to know:
- The only document the MPs have been presenting are the claim forms, exposing a major loophole in the mileage allowance payment.
This is not the first time the members of the August House have been censured over the mileage claim scam.
Members of the National Assembly are once again on the spot over fictitious mileage claims, amounting to Sh61million.
Just like in the past parliaments under the current Constitution, an audit report has laid bare how lawmakers have exploited weak controls in mileage allowance claims to cumulatively earn themselves the amount.
Auditor General Nancy Gathungu in a report for the year ending June 2023 revealed how National Assembly members have claimed millions of shillings without proof that they travelled to their respective constituencies.
The only document the MPs have been presenting are the claim forms, exposing a major loophole in the mileage allowance payment.
“Note 3 to the financial statements reflects domestic travel and subsistence amount of Sh4,666,761,286. The amount includes Sh61,966,703 on account of claimable allowance paid to Members of Parliament (MPs) upon travelling to and from their respective constituencies using personal vehicles,” states the report.
“However, the transport payment was only supported by a claim form making it difficult to ascertain if the MPs travelled to warrant payment of these allowances,” states the report.
This is not the first time the members of the August House have been censured over the mileage claim scam.
In 2015, then National Assembly Speaker Justin Muturi, was a man under siege alongside his members of the powerful Parliamentary Service Commission (PSC), which he chaired for calling out the fraud.
The Speaker invited the Ethics and Anti-Corruption Commission (EACC) to investigate the matter when it emerged that some lawmakers were even claiming mileage on vehicles that are writen off.
The rot also exposed how some legislators used air transport to their regions or didn’t travel at all but still, claimed mileage, swindling taxpayers.
When EACC released its report, alongside that of the auditor, the lawmakers then defended their perks and said everything was legitimate as PSC and the Salaries and Remuneration Commission (SRC) had approved them.
Then they argued that the EACC findings was an indictment on the commission for allowing loopholes through which public funds were lost.
MPs are entitled to a mileage allowance calculated at the Automobile Association rate of Sh187 per kilometre while travelling by road to their respective constituencies from Nairobi.
Those representing far-flung areas such as Coast, North Eastern, and Western have ended up claiming millions of shillings in mileage
The allowance was one of the contentious issues that SRC wanted scrapped.
The report notes that purchase of these goods and services was through cash despite them exceeding the set threshold for low value procurement method of Sh50,000 per item per financial year.
“This was contrary to section 107 of the Public Procurement and Asset Disposal Act, 2015 which states that a procuring entity may use low value procurement procedure if the estimated value of goods, works or non-consultancy services being procured are less than or equal to the maximum value per financial year for that low-value procurement procedure as may be prescribed,” states the report.
It has also exposed how some MPs exploit their office staff both at the constituency and in Nairobi. Some are said to be working without any contracts while other have ended up losing their benefits.
“The statement of receipts and payments, and as disclosed in Note 2 to the financial statements, reflects compensation of employees amounting to Sh10,390,606,558,” states the Auditor General report.
The amount includes basic wages of temporary employees amounting to Sh3,455,302,596 relating to staff at the constituency offices.
Audit inspection of 21 constituency offices and 11 county women rep offices revealed that the staff were not given contracts indicating the terms of employment and approved salary scales.
The report notes that this was contrary to regulation 22(1) of the Parliamentary Service (Constituency Offices).
The regulations require MPs, with the concurrence of the PSC, to initiate recruitment of all the constituency office staff whose terms of employment and salary scales have to be determined by the commission.
Further, the commission did not remit Pay As You Earn (PAYE), National Social Security Fund (NSSF) and National Health Insurance Fund (NHIF) statutory deductions for the staff resulting in arrears of Sh54,189,529, Sh6,023,964 and Sh92,400 in that order.
The lawmakers are also on the spot for irregularly spending Sh35 million on office supplies.
The report observed that the supplies were paid for in cash in total contravention of the procurement law.
“The statement of receipts and payments reflects the use of goods and services amounting to Sh9,151,586,173 as disclosed in Note 3 to the financial statements. The amount includes other operating expenses of Sh2,260,617,167 out of which Sh35,188,381 was incurred in respect to office supplies and services, accommodation and transport at the Constituency offices,” states the report.
