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KNEC Audit Exposes Sh2.8m Payments to 2022 KCSE ‘Ghost’ Examiners

Hezron Rooy by Hezron Rooy
September 23, 2024
in News
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KNEC Audit Exposes Sh2.8m Payments to 2022 KCSE 'Ghost' Examiners

KNEC Audit Exposes Sh2.8m Payments to 2022 KCSE 'Ghost' Examiners

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KNEC Audit Exposes Sh2.8m Payments to 2022 KCSE ‘Ghost’ Examiners.

An audit has uncovered that the Kenya National Examination Council (Knec) disbursed Sh2.8 million to 203 non-existent examiners during the 2022 Kenya Certificate of Secondary Education (KCSE) exams.

The report revealed that these examiners were not verified in Knec’s system, resulting in improper payments.

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The audit report outlined financial inconsistencies amounting to Sh4.2 billion for the fiscal year ending June 30, 2023.

Prepared by Auditor-General Nancy Gathungu in April 2024, the report criticized Knec for unauthorized expenditures without proper documentation or approvals from the Ministry of Education and the National Treasury.

It highlighted mismatches in Knec’s financial statements, particularly in areas like personnel costs, operating income, and examination fees.

Irregular Payments to Ghost Examiners

Within the reported Sh8.3 billion examination expenses, Sh5.1 billion was allocated to KCSE exams.

However, a review of payments for the December 2022 exams revealed that Sh2.8 million was paid to 203 examiners who were not validated in the Knec database, as required by its guidelines. This led to concerns over the legitimacy of the examination expenses.

The auditor-general’s report also showed that Knec’s liabilities of Sh4.1 billion far exceeded its assets, valued at Sh2 billion, leading to a negative working capital of Sh2 billion.

This raised concerns about Knec’s ability to meet its financial obligations. Additionally, the council had Sh239 million in outstanding prepayments, including Sh103 million in unrecovered imprests dating back to 2018, casting doubt on the recoverability of these amounts.

Statutory Deductions and Financial Discrepancies

The audit further exposed inconsistencies in statutory deductions. While Knec’s financial statement reported Sh111.3 million in deductions, system records showed Sh111.2 million, resulting in a Sh1.1 million discrepancy.

These inaccuracies indicate weak financial controls within the council.

Knec was also found to have paid Sh12 million in rent for office space it no longer occupied.

Despite vacating three floors at the National Housing Corporation (NHC) building, the council continued to pay for unused space, including parking and service charges, due to the absence of a replacement tenant.

This situation arose despite a lack of provisions in the lease agreement for such payments, and the report criticized Knec for not renegotiating the lease.

Rent ExpenditureAmount (Sh)
Office rent95,224,575
Rent for unoccupied space12,193,555

Dormant Donor Funds

The audit also highlighted Sh164 million in dormant donor funds, intended for educational projects, which have remained in Knec’s accounts for 17 years.

These funds, from organizations like the Aga Khan Development Network and the Rockefeller Foundation, were not transferred to the Consolidated Fund, as required by financial regulations.

In addition, Knec faced issues with examination fees totaling Sh3 billion. The council generated duplicate invoices, causing 112 institutions to receive multiple invoices for the same payment.

The lack of synchronization between invoicing and bank collections forced Knec to manually reconcile payments, further exposing weak financial controls.

The report raised concerns over the management of Knec’s assets, valued at Sh1.1 billion by June 2023, due to the council’s failure to maintain proper records.

It also noted that previous audit recommendations on internal controls, risk management, and governance had not been addressed, leaving significant issues unresolved as of June 30, 2023.

KNEC Audit Exposes Sh2.8m Payments to 2022 KCSE ‘Ghost’ Examiners.

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Tags: Auditor GeneralExaminersKCSEKNEC
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