County workers’ leaders divided on Sh60 billion Laptrust Fund audit calls
DISOUTE: A section of Kenya County Government Workers Union (KCGWU) yesterday opposed calls to audit the alleged loss of Sh60 billion at Local Authorities Pensions Trust (Laptrust), saying the move is malicious.
KCGWU deputy Secretary General Matilda Kimetto in a media briefing insisted that no money had been lost, saying such calls do not represent the stand of the national executive Committee, the union’s decision making organ.
“The entire portfolio of Laptrust and all related entities is Sh56 billion. The SG says Sh60 billion has been lost.
The onslaught against Laptrust is ridiculous and baseless allegations,” she said while addressing journalists on Friday.
This is after the Union’s Secretary General Roba Duba, representing another faction of KCGWU last week claimed that Sh60 billion had been defrauded by the fund’s management.
Duba, who has been at loggerheads with a section of the union, in a statement further called for Laptrust board members and its chief executive officer Hosea Kili to leave office until an audit verdict is made public.
“We call for the chief executive officer and the board members of Laptrust to step aside pending the audit to ensure the exercise is carried out without undue influence,” he was quoted as saying last week.
Kimetto’s remarks are the latest fuel to be added to the fierce debate on the decision by the government to classify pension schemes for all civil servants, including the Laptrust and County Pension Fund (CPF) that handle county workers’ annuities, as state corporations.
Directed the schemes
In July this year, the Head of Public Service Joseph Kinyua directed the schemes to submit their budgets and comply with National Treasury’s guidelines on bank accounts, surpluses, borrowings and expenditure. Kinyua’s directive was contained in a letter also copied to Treasury CS Ukur Yatani, Devolution CS Eugene Wamalwa and Secretary to State Corporations Advisory Committee Wanjiku Wakogi.
“The National Treasury to ensure a special audit by the Kenya National Audit Office for the purposes of ascertaining the current financial position of Laptrust and affiliate/subsidiary entities and guiding on future,” Kinyua said.