COUNTIESNEWS

Ouko raises red flag over MCAs unrecovered loans

Mercy Mwai @wangumarci

Auditor General Edward Ouko has raised the red flag over unrecovered mortgages and car loans in five County Assemblies.

In a report tabled in the Senate last Thursday, Ouko raised concern that some MCAs were advanced loans beyond the required limits, others were advanced without security while some assemblies are yet to recover money given to the MCAs.

The report for the County Assemblies of Busia, Nairobi, Kiambu, Nyamira and Kwale also raises queries on the modalities in the recovery of the loans from payrolls.

With respect to Busia, Ouko revealed the car and mortgage scheme, which is a revolving fund is in doubt because of  the inconsistent loan recoveries from the payroll totaling to Sh58.7 million as well as unrecovered borrowing from the Assembly of Sh8.1 million bringing the debt to Sh53.4 million which it is yet to be refunded.

Under absorption

Regarding Nairobi county, 10 MCAs are on the spot for being issued with car loans amounting Sh122.7 million.

Nyamira county, on the other hand, is under the microscope over the issuance of car loans totaling to Sh78 million to 38 MCAs without obtaining valuation report of the vehicles contrary to the requirements of the Public Finance Management Act state officers motor car loan scheme fund regulations.

Kwale County Assembly has been cited over irregular operation of the fund as it started operating before being approved by the County Assembly as well as due to its under absorption of Sh76.4 million as only Sh13.7 million was spent.

Kiambu Assembly is on the spot because the staff mortgage recovery ledger, which reflects a balance of Sh736.4 million differs with documents presented amounting to Sh1.3 million.

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