Kenya fires six over graft

Nairobi, (IT news Africa)–SIX top managers at Postal Corporation of Kenya (PCK) have been sacked over allegation of corruption.

The managers, among them, former Post Master General Fred Odhiambo was sacked alongside Julius Shingoli (Company Secretary), Sally Wainaina financial services, Andrew Tanui in charge of facility and logistics.

Others are Chris Isabwa, Ken Oluoch and Tom Ogutu following a forensic audit ordered by the permanent secretary in the ministry of Information and Communication Bitange Ndemo, in September 2008.

The audit was conducted by audit firm Deloitte, which highlighted the poor recording procedures of Postapay.

The forensic audit by the firm identified serious shortcomings in the contract that gave Afripayments excessive control over Postapay operations.

The report found that money remitted by customers was deposited with Afripayments but was then retained by the company beyond the agreed settlement period.

The auditors found that Africapayments owed PCK a net amount of Sh52,289,815 and $ 28,898, but an internal source at PCK said the amount outstanding had now risen to Sh156 million.

Before their sacking, the six former manager’s contract was terminated after the Minister, Samuel Poghisio, ordered their investigation.

It was discovered that Afripayments Kenya, which manages Postapay, issued two bouncing cheques to Postal Corporation of Kenya amounting to Sh16.2 million.

The cheques for Sh11.4 million and Sh4.8 million were payments for international money transfers, which Posta had paid out to its Postapay customers locally.

When asked what he would do about the bounced cheques, Odhiambo had earlier said that he had issued instructions to Afripayments to immediately start transmitting the money through electronic transfer to ensure no more cheques bounced.

Afripayments is registered in Wilmington, Delaware, in the United States, but has an office in Nairobi.

In April, PCK had written to Afripayments and stated they would no longer honour international inbound cash transfers unless the company paid the outstanding sums.

Only one fraud in Posta pay has been confirmed after Sh2.4 million transferred from Garissa and other offices went missing sometime in 2007. Following that incident, Afripayments reimbursed PCK.

By Brian Adero