EACC lists seven tactics counties use to perpetuate payroll fraud

The Ethics and Anti-Corruption Commission (EACC) has revealed several methods that county governments use to perpetrate payroll fraud, which has resulted in inflated and unsustainable wage bills across the country.

This revelation followed an EACC operation that targeted Nandi County government offices, focusing on illegal payments to ghost workers and other payroll irregularities.

Additionally, the commission confirmed another 352 similar cases nationwide.

EACC Spokesperson Eric Ngumbi stated that the increasing wage bills in many counties stem from governors exerting control over departments like county public service boards, thereby manipulating employment processes.

He also pointed out that members of county assemblies (MCAs) have neglected their oversight responsibilities.

Instead, they have become more focused on securing jobs for their supporters and relatives, compromising their accountability roles.

The EACC identified several ways counties instigate payroll fraud.

One common method involves the presence of ghost workers, non-existent employees who appear on paper but do not contribute to county operations.

These individuals receive salaries from which they retain a small percentage, handing over the remainder to their superiors.

Another method is over-employment, which involves hiring more staff than necessary, particularly at lower levels, driven by nepotism, and political favouritism.

As a result, a significant portion of public funds is spent on salaries instead of on development and service delivery.

Forged certificates

Some counties also employ individuals with forged academic certificates, treating employment as a means of rewarding political supporters, relatives, and associates rather than hiring qualified personnel.

Furthermore, there are instances where counties continue to pay salaries to employees who have already retired or otherwise left their positions.

Another issue is multiple employment, where employees hold jobs in more than one county or institution simultaneously.

Additionally, counties hire unqualified persons, disregarding the necessary qualifications for their positions. Some employees are even assigned to higher grades, allowing them to earn salaries that exceed their actual qualifications.

However, the EACC expressed its commitment to eradicating corruption within county governments, noting that payroll fraud and the presence of ghost workers are fuelled by the impunity of county officials.

This situation undermines the independence of county public service boards and county assemblies.

The operation conducted on Thursday in Nandi County yielded crucial documents and evidence after the county government failed to comply with the EACC's request for necessary documentation by September 30, 2024.

The investigation uncovered valuable materials, including access to the payroll server suspected of containing records of ghost workers.

Key offices targeted during the operation included those of the county secretary, chief officer of finance, director of human resources, payroll manager, and the personnel responsible for payroll management.