MPs have ordered a forensic audit of Meru National Polytechnic following the alleged loss of Sh120 million due to payroll irregularities caused by a faulty Enterprise Resource Planning (ERP) system.

The Public Investments Committee on Governance and Education, chaired by Bumula MP Wamboka Wanami, is considering surcharging individuals responsible after discovering some employees received triple salaries while others shared identification details.

During a meeting with Chief Principal Secretary Anderson Mutembei, who appeared to respond to Auditor General Nancy Gathungu’s report, MPs described the situation as fraudulent and vowed to investigate thoroughly. Despite the Sh12 million system being defective, the institution continues paying an annual maintenance fee of Sh800,000.

Committee vice-chairperson Anthony Kibagendi stated: “We must conduct a forensic audit on this system. There are numerous procurement issues. We want the institution and auditor general to reconcile everything and submit a report within two weeks.”

Kibagendi requested that at the next meeting, Mutembei bring former principals, system suppliers, certified bank statements of those receiving multiple payments, the signed contract, and all senior managers.

Questionable birthdays

Imenti MP Moses Kirima questioned how much money was lost and how errors occurred when information was manually entered. Kiminini MP Kakai Bisau inquired how one employee received salaries through different bank accounts.

The audit report revealed concerning issues: four employees with duplicate or missing KRA PINs, 17 workers with questionable birthdates (some under 18 years old), and 143 employees with questionable contracts, including one for 33 years.

Moreover, Sh1.4 million was paid to an officer deployed to a lower position who continued receiving a higher salary.

Mutembei defended the institution, claiming some errors like birthdates were corrected, while other processes reverted to manual systems.

He acknowledged the system’s problems, stating: “These errors were corrected. The system has given us massive problems, which is why we’re procuring a new ERP system.”