Posta suspensions stand, says PS

May 6, 2009
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, NAIROBI, Kenya May 6 – The government maintained on Wednesday that seven top Postal Corporation of Kenya managers would remain suspended even if a probe into their involvement in a money transfer service scam was ongoing.

Information Permanent Secretary Bitange Ndemo said although the audit report was a draft, some of the findings would not change even after the final report was submitted.

Some of the suspended managers had raised issue that their suspension was premature, a point Mr. Ndemo was quick to clarify.

“There are some action points that will not change even when the final report is delivered. For example the report finds issue with the procurement and the Board has already taken action on it,” Mr Ndemo explained.

He also said the suspension of the seven managers was not an indication of their involvement in the scandal but a way to pave way for further investigations.

“The managers were sent on compulsory leave only to pave way for investigations (which) was in no way meant to embarrass them.

The bone of contention lies where a draft audit of the Postal Corporation of Kenya’s money transfer service (Postapay), carried out by Deloitte, revealed serious loopholes, which facilitated a Sh2.4 million loss through fraud.
The PS added that the fate of Post Master-General Fred Odhiambo was in his hands to show why any action should not be taken against him.

“The scandal started way before he joined the Corporation but he has to show cause as to why he did not intervene earlier to avoid any possible punishment.”

Mr Ndemo also revealed that the suspended managers would appear before the Kenya Anti Corruption Commission to argue their innocence.

It is reported that since 2006 when it started, PostaPay has transferred over Sh10 billion.

PostaPay is also said to earn the Corporation a monthly commission of Sh34 million and charges between Sh17 and Sh25 for every transfer.

There has been rising competition in the money transfer sector with PostaPay’s main competition coming from Safaricom’s M-PESA and Zain’s Zap.

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