The Ethics and Anti-Corruption Commission (EACC) is investigating the University of Nairobi (UoN) over irregular use of funds. 

This came on the day MPs, who sit in the Public Investments Committee on Governance and Education, chaired by Bumula MP Wanami Wamboka, fined the acting Vice Chancellor Margaret Jesang’ Hutchinson Sh500,000 for failing to provide adequate responses to the Auditor General. Hutchinson appeared to respond to audit queries for various financial years. 

“I want to invoke the Standing Orders and fine you Sh500,000 payable in two weeks’ time. The cheque should be addressed to the Clerk of the National Assembly, money which should not come from the institution but from your own pocket,” said Wamboka. 

The decision of the committee came hours after it emerged the EACC disclosed it is investigating the university over allegations of irregular and unlawful leasing out of various parcels of land. 

They include 10 acres of land in Kanyariri farm, 40 acres behind ANP hostels, 100 acres of land in Kibwezi field station, 20 acres leased to Shamba Cafe Hotel, six acres next to Dusit Hotel Spring Valley next to the shopping centre, residential houses along Ngong road and along Arboretum Drive. 

Appearing before MPs yesterday, Hutchinson confirmed that the commission had written to them asking for the said documents and had in return submitted them to the commission. “Yes, I can confirm that the letter was addressed to the acting Vice Chancellor, which we responded to on Monday,” she said. 

The move comes at a time when the universities’ management acknowledged that the institution is facing a financial crisis, with debts exceeding Sh12 billion due to insufficient funding from the Ministry of Education. 

Mounting debts 

The debts include pension arrears of Sh7.8 billion and Sh4 billion owed to the Kenya Revenue Authority (KRA), suppliers of Sh194 million, and Absa Bank Sh315 million, among others. 

The university’s management has also admitted that between 14 and 20 senior management positions were created unlawfully, as they lack essential documents for those appointed to these positions. 

The revelations came on the day the MPs directed the University of Embu Vice Chancellor Prof Daniel Njiru to pay Sh3.8 million for committing the university’s funds without requisite approval. 

This is after the committee established that it diverted, without approval, the funds which were meant for the implementation of the Collective Bargain Agreement (CBA) into other uses. 

Further, it also established that the VC was in breach of the law when he authorised expenditure in the university without the Council’s approval. Wamboka directed that the fine be paid by the VC in his capacity as an individual and not from the varsity’s coffers. 

“It cannot be that the Vice Chancellor decides how much to spend and how much not to spend, without approval. You have no such powers to change what the money was meant for,” Wamboka said, adding that they were flagging the VC for excessively being incompetent and abusing office, and surcharging him Sh3.8 million payable in six months. 

Diverted funds 

The matter was raised by Auditor General Nancy Gathungu in her audit report for the financial year 2013/14. According to the report, the university, then a constituent college of the University of Nairobi, received funds for the CBA implementation from the education ministry. 

“Collective Bargain Agreement (CBA) outstanding balance of Sh81.5 million had not been refunded back to the Ministry of Education as previously directed as at time of audit,” the report said. 

In his response, however, Njiru explained they got verbal approval to use the money for refurbishing the institution’s infrastructure. 

“Since the university was newly established and had no arrears to settle, these funds were reallocated to other budget votes through a budget review and utilised to refurbish the dilapidated facilities inherited from its predecessor,” he told the committee.