Telkom Kenya has unearthed a syndicate in which the parastatal and its clients have lost millions of shillings. The firm’s anti-fraud unit said a lot of revenue had been swindled through collusion of Telkom Kenya staff and subscribers, mainly from Nyanza Province.

Cheques paid by Government institutions and NGOs are diverted into the billing accounts of individual customers after paying a fee to the parastatal staff. "The fraudulent customers collude with our staff working in the Computer Department to have the payments reflected in their accounts. Institutions that pay the bills end up being robbed unknowingly," said Mr Elijah Kimutai, a senior official at the fraud management unit of the parastatal.

He said the suspected subscribers have had their lines disconnected and would be prosecuted once investigations were complete. "Telkom workers in the revenue, accounts and computer departments are also being interrogated. This syndicate has eroded the confidence and trust of our customers," Mr Kimutai said in Migori Town.

He showed journalists accounts records showing how the ministry of Information and Tourism was robbed of Sh181,988 in one instance. The money, which was meant to offset the unpaid bill of Migori district information office telephone line, was instead reflected as payment for a Migori trader’s bill.

Daily Nation