Posta boss sacked over missing funds

May 25, 2009
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, NAIROBI, May 25 – Postal Corporation of Kenya (PCK) Managing Director Fred Odhiambo has been sacked.

A source at the Ministry of Information and Communication on Monday told Capital Business that Mr Odhiambo was given marching orders by Minister Samuel Poghisio following a probe into misappropriation of funds.

A forensic audit was ordered by the Ministry’s Permanent Secretary Bitange Ndemo in August last year when it emerged that the corporation’s money transfer service PostaPay, was losing millions of shillings every month to fraudsters.

Mr Ndemo said the losses at PostaPay were compromising accountability and transparency in the State-owned firm.

PostaPay senior managers Tom Ogutu, Sally Wainaina, Ken Oluoch, Andrew Tonui and Enock Kinara and Company Secretary Julius Shigoli, were earlier this month sent on compulsory leave and they later appeared before the Kenya Anti Corruption Commission over the matter.

The review by audit firm Deloitte earlier this month revealed irregularities in the contract between the Corporation and Afripayments, the company contracted to run the money transfer service.

The review found that money remitted by customers was deposited with Afripayments and retained by the company beyond the agreed settlement period.

The auditors also found that Afripayments, an American Company with offices in Kenya, owed the Postal Corporation millions of shillings

The PostaPay service has been a joint venture between the Postal Corporation and Afripayments.
 

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