The University of Eldoret is on the spot for paying nil salaries to 35 officers for between six to 12 months contrary to the Employment Act.
Auditor-General Edward Ouko says an audit of the university payroll revealed the 35 earned zero salaries or less than a third of basic salaries contrary to Section 19(3) of the law.
The Act states that the total amount of all deductions at any time shall not exceed two thirds of such wages.
“Although the management has explained that this was as a result of imprest recovery, the management has not provided any reason as to why the law was breached and the measures being taken to ensure that staff do not suffer pecuniary embarrassment,” Mr Ouko said in a qualified audit opinion dated August 14.
Mr Ouko also questioned the ethnic composition of the university, saying a review of personnel records made available for audit indicated that as at June 30, 2016, the institution had nine members of the council, eight senior management staff and 931 other permanent and pensionable staff.
“It is apparent that one dominant community comprised 51 per cent of the total workforce contrary to section 7(1) and (2) of the National Cohesion and Integration Act, 2008 which requires that all public establishments shall seek to represent diversity of the people of Kenya in employment of staff,” Mr Ouko said.
Further, Mr Ouko said the law requires that no public establishment shall have more than one third (1/3) of its staff establishment from the same ethnic community. The auditor put the university on the spot for failing to remit statutory deductions amounting to Sh115,767,887.
It is in arrears in remitting Sh112,571,112 in Pay As You Earn (Paye), Sh3,166,875 in National Hospital Insurance Fund and another Sh29,900 in penalties to NHIF.
“The management has not provided any reason statutory deductions were not remitted in time to avoid nugatory payment amounting to Sh41,127,706 in respect of penalties,” Mr Ouko said.
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