eCitizen Under Fire as Audit Reveals Massive Irregular Withdrawals

Date:

Summary

  • MPs are probing alleged loss of Sh9.4 billion from eCitizen platform.
  • Several firms, a bank, and government entities have been summoned.
  • Audit flagged irregular transfers to private accounts and control concerns.

NAIROBI, Kenya- The government is facing mounting pressure after fresh revelations of alleged financial mismanagement involving billions of shillings from the eCitizen platform.

Parliament’s Public Accounts Committee (PAC) has now widened its probe into the alleged loss of Sh9.4 billion, summoning multiple entities to explain the discrepancies.

MPs summon firms and bank over missing billions

The committee, chaired by Tindi Mwale, resolved to summon seven entities following a session at County Hall on March 25.

Those already questioned include Principal Secretaries Chris Kiptoo, Belio Kipsang, and John Tanui.

Entities lined up for questioning include the Office of the Attorney General, a local commercial bank, Webmasters Kenya, and Electronic Citizen Solutions.

Lawmakers want detailed explanations on how these firms were licensed, how much money they handled, and whether any public funds were diverted.

Audit flags irregular transfers and control gaps

A report by the Auditor-General revealed that billions were allegedly funneled into private accounts, raising concerns about transparency and accountability.

The audit also flagged structural risks, warning that reliance on a private vendor could create a “single point of failure” for the platform.

Further findings showed that Sh6.3 billion was irregularly diverted into a private account without government approval.

Another Sh68.7 million and Sh6.22 billion (USD 48 million) were linked to transactions through the Pesaflow system.

Auditors noted that the account used was not approved by the Treasury and lacked proper documentation for verification.

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Treasury defends system ownership

Treasury PS Chris Kiptoo told lawmakers that the platform is fully owned by the government following a 2023 handover agreement.

He said the agreement required the vendor to transfer the system unconditionally to the State.

Despite the assurance, MPs raised concerns about possible systemic loopholes and weak oversight mechanisms.

Kiptoo added that some of the funds under investigation have since been seized as authorities continue to unravel the case.

George Ndole
George Ndole
George is an experienced IT and multimedia professional with a passion for teaching and problem-solving. George leverages his keen eye for innovation to create practical solutions and share valuable knowledge through writing and collaboration in various projects. Dedicated to excellence and creativity, he continuously makes a positive impact in the tech industry.

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