The wife of a senior Homa Bay County Assembly official has been drawing Sh600,000 in salary and allowances every month from the assembly.
The woman is not an employee of the county assembly.
The woman has also been receiving Sh50,000 a month pay from the executive wing of the county, where she is employed at a health institution.
A company registered in her name is also a key supplier of the assembly.
This is part of a shocking Sh400 million rip-off the Ethics and Anti-Corruption Commission (EACC) is investigating at the county assembly.
The EACC, Southern Nyanza region office, has subsequently summoned 30 assembly staff and eight MCAs to record statements regarding the loss of the funds.
Sources at both the EACC and the assembly said the House has been losing millions of shillings through fake tenders and payment to ghost workers since 2014.
"The assembly has been paying millions to companies associated with senior officials. Money has been paid to phantom companies that have done no work for the assembly," said the sources.
EACC Southern Nyanza regional boss, Abraham Kemboi, declined to discuss the matter but confirmed that his office was investigating the assembly.
A source at the assembly who is helping the commission with the investigation said senior staff and some of MCAs were in a panic after they were summoned to record statements.
"One of the companies whose name we have is owned by a senior official at the assembly but is registered in his wife's name. The information we have found is that the official has been authorising payments to his wife. Therefore, he is the one leading the cartel," said the source.
He added: "There are also other friends and relatives who have been receiving pay unlawfully."
"There are also other friends and relatives who have been receiving pay unlawfully," said the source.A number of people who do not work in the county assembly were also paid salaries based on how they relate to the senior official.
Three weeks ago, Mr Kemboi led a team in raiding the assembly premises over misappropriation of funds.
The commission is investigating the lifestyles of senior officers who live lavishly and have purchased large tracts of land and own fleets of sleek vehicles.
One officer is said to be operating seven bank accounts, each with millions of shillings.
Kemboi said the investigations were progressing well but insisted that he could not discuss the details as this would interfere with the investigation.
"We are progressing well with the investigation and will soon achieve our objective in this matter," he said.