Former Film Classification Board CEO Ezekiel Mutua may be forced to reimburse an overpaid Sh3.1 million salary he paid for the fiscal year ended June 2020.
As of June 30, 2020, KFCB has paid a cumulative amount of 15.3 million Shillings, of which 9.2 million Shillings. and Sh 6.1 million. in the 2019-20 and 2018-19 financial years.
The general auditor Nancy Gathungu has cited deficiencies as irregular in the approval of the Salary and Compensation Commission.
The KFCB board decided at a meeting on January 31, 2019 to review the CEO’s salary from Sh348,840 to Sh1,115,850 per month. The Board of Directors retroactively dated the new rate to November 2018.
“The payment was made without the approval and advice of the Salaries and Compensation Commission,” said Gathungu.
During the reporting period, the KFCB personnel costs from Sh148 million to Sh208 million.
“Therefore, the validity of the expenses of Sh9.204.120 included in the personnel costs for the year could not be confirmed,” added the auditor.
< The audit further revealed that the board of directors had issued six million film classification stickers for Sh 47.5 million between November 3 and January 2012. procured.
Gathungu warned that taxpayers would pay up to 26 million Sh. Some stickers still need to be mailed to regional offices. “An examination of business records kept by the board found that 2,784,789 stickers, valued at 26 million shunt, were not used or given to regional offices across the country “The audit report said.
The auditor added,” Management recognizes that inventory is slow and could be out of date due to technological changes. “
They asked why the board had not made any allocations in its books for impairments from the late deliveries.
“As a result, the accuracy and fairness of the inventory as of June 30, 2020 could not be confirmed,” said Gathungu.
< The film board is also involved in the irregular procurement of ICT equipment and services on site during the reporting period.
KFCB procured computer accessories and data processing equipment for 4.4 million Shillings, but the auditor says that that Procurement procedure was not followed.
Gathungu said the procurement would be without the use of framework agreements from the Ministry of Information Communications and Technology.
A March 2018 circular provided that all ICT equipment and services will be centrally sourced from the ICT Department under the direction of Joe Mucheru.
“In addition, management has not approved the audit audit provided by the ICT Department to procure outside of the framework contracts, such as demanded in the circular of March 1, 2018, “said Gathungu.
The board of directors has broken the law in this respect, she said.
Also requested was an additional expenditure of Sh63 million for general expenses , which management attributed to increased public awareness and public awareness campaigns about the board’s mandate.
The expenses, Gathungu said, have pending bills that are included in the board’s assignments ds for the 2019-20 fiscal year.
“Expenditure was not supported by approved work plans and approved budget allocations under Section 43 (2) of the 2012 Public Finance Management Act,” the audit report said.
“Under the circumstances, the board of directors is breaking the law,” said Gathungu in the report presented to Parliament on December 2nd.
(Edited by V. Graham)