Crisis as Treasury withholds teachers' pay in Kenya

NAIROBI, KENYA: Over 288,000teachers are yet to be paid their November salaries because their employer and Treasury are tussling over a new payroll system.

The Standard established the National Treasury has declined to release Sh13.8billion to the Teachers Service Commission (TSC), citing failure to install software the Government recommended to track financial transactions.

Teachers are usually paid latest by the third day of every month. Since ittakes10days–between 15th and 25th of every month – to process the payroll, it means the earliest teachers can receive their salaries is mid this month, assuming the dispute is resolved immediately.

Documents seen by The Standard indicate TSC had been instructed to adopt a new payroll system recommended by National Treasury before teachers’ salaries are remitted.

The Treasury wants SC to migrate to an Oracle-based Integrated Financial Management Information System (IFMIS) and not the IFMIS (IBM Informix-based) that it currently operates.

In a letter authored in October, Treasury warned TSC that no further payments shall be made outside the recommended payment systems.

“The National Treasury has accepted your request that you transfer the salary for October, 2014, outside the IFMIS and G-Payment systems. However, this office will not allow any future payments done outside the two systems,” reads the letter signed by B.M Ndungu, the director-general for accounting services.

That way, the parties reached the agreement to avert another crisis in payment of teachers’ October pay.

The letter urgently advises TSC to “liaise with the IFMIS department, the National Treasury and the Central Bank of Kenya (CBK) for the installation of IFMIS and Government payment systems respectively”.

“Please note that the Commission is a vote and should not operate outside the two systems,” advised Ndungu in the letter dated October 31, 2014.

Confidential letters by TSC Secretary Gabriel Lengoiboni indicate that the teachers’ employer had made efforts to comply in vain.

“The Commission has been following up the implementation of your instruction to instal the IFMIS (Oracle based) which is based at the National Treasury and the Government pay at the TSC. However, the director IFMIS at National Treasury and director Banking Services (CBK) are yet to send officers to assist in the installation,” reads the letter by Mr Lengoiboni.

BANKS’ DEMANDS

The letter sent to National Treasury Cabinet Secretary Henry Rotich is dated November 14, 2014.

Efforts to reach Mr Rotich were futile, as telephone calls made by The Standard went unanswered.

TSC wrote another letter to the IFMIS director at the National Treasury, asking for implementation of the proposed payment system.

“The commission wishes to propose that we hold a meeting between yourself and CBK on December 1, 2014, at a venue of your choice to discuss IFMIS and G-pay implementation,” the letter dated November 26, 2014, went on. The letter is written by Grace Ngure, on behalf of Lengoiboni, and copied to director general, Banking Services Division, and director general accounting services.

TSC also argues that the current payroll infrastructure it runs is superior and has many benefits that would be lost in the planned shift.

“The commission has so far invested close to Sh100 million in procuring and customising the ERP IFMIS system currently in use,” reads the letter.

“Under this system, we have been preparing our financial statements on the accrual basis of accounting. This has been lauded by the consultant contracted by the National Treasury on implementation of IPSAS.”

The Kenya National Union of Teachers (Knut) and the Kenya Union of Post-Primary Education Teachers (Kuppet) demanded immediate release of teachers’ salaries.

Knut Secretary General Wilson Sossion said teachers are infuriated by the delay.

“We have received many complaints from teachers who say they will miss their examinations in various universities because they cannot complete fees payment,” said Mr Sossion. “The employer must, according to labour laws, remit workers pay by the third day of the month. If by now they have not prepared the payroll, it means further delay. We demand the money is paid by Thursday (today),” he added.

Sossion also said teachers third party deductions have also been affected and warned that the union will not allow its members to suffer.

BANKS’ DEMANDS

Kuppet Secretary General Akelo Misori said banks and savings agencies were already demanding their monthly remittances.

“We cannot allow the employer to eat into the comfort of its workers. This is so unfortunate,” he said.

“We have not received anything. Most teachers travelled from far-flung areas to their bank accounts but some of them went back empty handed. They will have to incur other costs to make return trips to check,” said one of the teachers from Kakamega.