NLC Chief Executive Officer Kabale Tache said they did not make the payments, blaming Kenya Railways for the same.
"This matter lies squarely with the Kenya Railways," she said, arguing that they made the fictitious payments.
But Kenya Railways Managing Director Philip Mainga defended himself saying the NLC was responsible for the valuation of the land to be compensated, which resulted in the Sh1 billion payout to shadowy figures.
"The commission gave us the list of people to be paid. Our work was just to pay," Mainga told MPs.
Pkosing questioned the difficulties experienced in finding out the beneficiaries of the scandal.
"We need the accounts that received the money," he said adding that this would help establish a money trail that would bring to book corrupt individuals who defrauded the taxpayer.
Previous audits of the SGR compensation have revealed instances of over-compensation, resulting from lack of due diligence on the NLC's part.