The Public Investment Committee on Social Services, Administration and Agriculture (PIC-SSAA) met questioned officials from Communication Authority of Kenya (CAK) led by Director General, Mr. David Mugonyi over expenditure by the Authority.

The Hon. Emmanuel Wangwe-led committee sought answers to audit queries emanating from the Auditors report for the Financial Year 2017/18.

The Committee asked Mr. Mugonyi to explain the unexplained and unreconciled variance of Kshs.2,753,219 from staff wages and costs.

"The statement of financial performance and note 9 to the financial statements reflect an amount of Kshs.1,140,209,000 in respect of employee costs. However, monthly analysis of employee costs gives a total sum of Kshs. 1,142,962,219 resulting in an unexplained and unreconciled variance of Kshs. 2,753,219," auditor's report read in part.                                            

The report further indicated that; "In addition, bonus payments amounting to Kshs.9,589,055 made to staff or various reasons for which the basis of payments and the authority for payments listed below were not made available for audit".

The Auditor General in the report indicated that the accuracy of employee costs of Kshs. 1,140,209,000 for the year ended 30 June 2018 could not be confirmed.

The audit report revealed unreconciled variance of Kshs. 2,753,219 between the employee costs reflected in the statement of financial performance and the employee costs.

Another discrepancy that was noted indicated lack of documentation and authority for bonus payments totaling Kshs. 9,589,055, including lump sum payments and long service awards.

In his response, Mr. Mugonyi attributed the cause of the variance in the payroll to long service awards paid in payroll and charged to staff welfare vote.

"The lump sum payments were paid according to HCA policy clause 4.7.2 which states that Employees who have reached the maximum of their salary scales, with positive appraisal ratings, may be awarded a lump sum performance related bonus, equivalent to one or more annual increments, but not exceeding three increments per year," he said.