ILLEGALITY?

Revenue allocation agency questioned over irregular staff promotion

CRA defied Salaries and Remuneration Commission warning and promoted 14 employees

In Summary
  • During the year under review, the promotions cost taxpayers Sh7.4 million.
  • CEO admitted the commission breached the law.
Commission on Revenue alocation ceo James Katule and Chairlady Mary Wanyonyi answer audit questions when they appeared before the public accounts committee in parliament on November.23rd.2023/EZEKIEL AMINGÁ
Commission on Revenue alocation ceo James Katule and Chairlady Mary Wanyonyi answer audit questions when they appeared before the public accounts committee in parliament on November.23rd.2023/EZEKIEL AMINGÁ

The Commission on Revenue Allocation (CRA) was on Thursday at pains to explain how it illegally promoted 14 staff members in total disregard of the advice from the salaries commission.

CRA Chief executive James Katule was put to task to explain how the agency proceeded with the promotions and salaries adjustments against express warning by Salaries and Remuneration Commission.

SRC is constitutionally mandated to amongst others, set and regularly review the remuneration and benefits of all state officers

But CRA despite being advised by SRC, went ahead to irregularly promote staff based on unapproved salary structure.

The commission had sought approval which SRC declined but they went ahead to effect the promotions.

The anomaly was flagged by Auditor General Nancy Gathumbi in her 2020/21 audit report.

“The Commission on Revenue Allocation (CRA) implemented a new salary structure in 2020/21 financial year and accorded direct promotion to 14 staff members, without the necessary approval by the Salaries and Remuneration Commission,” Gathungu pointed in her report.

“This was contrary to Article 230 Clause 4(b) of the Constitution of Kenya which provides that the power and functions of SRC shall be to advise the National and County governments on the remuneration and benefits of all other public officers.”

In the year under review, the commission spent Sh7.4 million to sustain the irregular perks as a results of the promotions.

Members of the National Assembly Public Accounts Committee were taken aback by the CEO’s own admission of breach of the law.

Committee chairman John Mbadi said the committee will retreat to write a report following the CEO’s admission.

“You asked for approval from SRC, when the approval was not granted you went ahead to implement the promotions. We shall write our report,” Mbadi said.

Rarieda MP Otiende Amollo—a member of the committee—demanded explanation on any internal measures to recover the millions paid to the affected officers outside the law.

In his defense, Katule pleaded with the committee to allow the commission to work towards regularising the promotions as opposed to reverting to the initial status.

“The fact is that the matter happened in 2020, therefore what we would ask for is to be able to rectify by engaging SRC other than going back,” Katule said.

CRA chairperson Mary Wanyonyi also pleaded with the Mbadi-led committee to allow them engage SRC with a view of getting their concurrence on the positions.

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