The Kenyan government has called in forensic auditors to probe the integrity of the Postal Corporation of Kenya’s electronic money transfer service, Postapay, following reports of loss of millions of shillings to fraudsters, Business Daily reports.
In a letter to the corporation’s board of directors dated September 3, Information and Communications permanent secretary, Bitange Ndemo says the partnership as crafted had left the supplier of software with undue control over Postapay operations, exposing the company to heavy losses of revenue.
People familiar with the matter told the Business Daily that the Postal Corporation of Kenya is losing more than Sh20 million per month since Postapay was launched in 2006 to fraudsters with access to the electronic money transfer system.
The volume of business handled has reduced from Sh600 million per month to Sh400 million due to what insiders said was the waning use of money orders in the Kenyan market.
The service was launched under a partnership agreement between the corporation and Afripayments in 2006, which Dr Ndemo now says is compromising accountability and transparency in the State-owned firm.
