Government Loses Ksh 1.2B to Ghost Students, Audit Report Reveals
In spite of implementing austerity measures to control excessive spending and reduce budget deficits, the government continues to grapple with unresolved issues that undermine its efforts.
The latest report by the Auditor General, Nancy Gatungu, exposes ongoing challenges, revealing that the government is losing funds not only to ghost workers but also to students, indicating a persistent struggle in combating embezzlement.
According to Gatungu, approximately Ksh1.2 billion was lost through unsupported capital grant financing to private universities in the financial year 2021/2022.
Details of the financial losses reveal that private universities, whose identities were undisclosed, received Ksh3.3 billion but only accounted for Ksh2.1 billion, prompting concerns about the unexplained balance.
An allocation of Ksh265 million to five universities lacked proper documentation, as these institutions failed to provide acknowledgment letters and receipts for the payments.
Additionally, three universities were unable to justify the use of Ksh15 million from a Ksh198 million disbursement, confirming only the receipt of Ksh183 million.
The report highlights a disconcerting finding of 404 ghost students duplicated across thirteen universities, allegedly benefiting from a Ksh22 million disbursement with undisclosed purposes.
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An analysis of supporting schedules disclosed an overpayment of Ksh22,591,680 due to the duplication of these students.
Simultaneously, Ksh136 million was disbursed to 3,357 students who had already graduated by November 2021, raising concerns about funds being allocated to students who had completed their studies.
Between July 2021 and June 2022, Ksh376 million was awarded to 8,964 students suspected of leaving or deferring their studies, while Ksh337 million went to 7,828 students who had exceeded the prescribed four-year duration for their enrollment.
Addressing the financial crisis in tertiary institutions, the Ministry of Education ceased funding students in private universities in May 2023 as part of a reform to enhance financial stability.
Education CS Ezekiel Machogu clarified that henceforth, no government grant would go to private universities, placing the financial responsibility on parents opting for private institutions. Machogu announced this decision during a session with the National Assembly Public Investments Committee on Education and Governance (PICEG).
The Auditor General also highlighted irregularities in state universities, amounting to Ksh8 million in foreign and domestic work travel, emphasizing the importance of addressing financial management within these institutions.
Government Loses Ksh 1.2B to Ghost Students, Audit Report Reveals
