Department rejects paying ‘ghost pensions’

Kenya’s Pensions Department has accused Auditor-General Edward Ouko of misrepresenting facts by saying $69m was paid to ghost retirees. In a report tabled at the National Assembly, Ouka said individuals at the National Treasury may have taken advantage of the weaknesses in the Pensions Management Information System to authorise irregular payments. Of the funds paid out, 962 claimants received $15.5m which was made way before the end of their service dates. As a result, they drew salaries despite receiving their pensions. The Nation reports that department director Shem Nyakutu said the report was a vote-of-no-confidence on his office, considering that he certified the payments ‘with a green pen’. ‘We had time with the auditors and explained why certain things happened. Every claim we process for those who have died or retired is scrutinised by the Controller of Budget and the Auditor-General,’ Nyakuti added.