Monday, October 14, 2019
Home Counties Nyandarua, Nakuru counties to lose millions as MCAs default on loans

Nyandarua, Nakuru counties to lose millions as MCAs default on loans

Nyandarua and Nakuru county assemblies could lose millions of shillings in unpaid car and mortgage loans given to members of county assembly (MCAs) once their current term in office expires.

The latest report by Auditor-General Edward Ouko indicates that MCAs in the Nakuru County Assembly risk defaulting on payment of Sh148 million advanced as car loans once their current term expires.

Each of the 75 MCAs received a Sh2 million car loan.

According to the report, the repayment of the loans advanced to MCAs was pegged on allowances instead of their salaries as required by law.

Further, the logbooks of 15 beneficiaries had not been registered jointly as collateral in their respective names and that of the county assembly service boards at the end of the financial year under review.

The report reveals that in the circumstances, the county does not have all the security to fall back to if the MCAs default on their loans.

The report also discloses that more than Sh7 million earned as interest from the car and mortgage loans scheme could not be accounted for.

It indicates that the county assembly had entered into an agreement with Family Bank to earn a share of 75 per cent of the total interest earned from the Sh320 million car and mortgage loans scheme fund.

However, the county assembly did not provide documents to show how the Sh7.3 million earned as interest from the total Sh9.7 million interest was treated.

In Nyandarua County, the report revealed that in March 2014, the county assembly entered into an agreement with Chase Bank to manage its car and mortgage fund.

However, out of 42 MCAs who had obtained both the car and mortgage loans, 34 had not provided logbooks and title deeds as security for the loans, making it easy for them to default on payment of the loans.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest articles

Kenyans Continue To Smash World Record As Brigid Kosgei And Lawrence Cherono Secure Gold For Kenya

Brigid Kosgei ran a jaw dropping 2:14:01 to obliterate the women’s World Marathon record en route to winning the Chicago Marathon on Sunday. Lawrence Cherono...

Zari Thinking Of Going Nollywood?

In May 2019, Zari Hassan revealed that she had been approached severally to star in Nigerian movies but turned down the offers. According to Zari,...

Julie Gichuru Awarded Plum State Job

Award-winning journalist Julie Gichuru is among those who have been appointed to plum state jobs in the latest reorganization of President Uhuru Kenyatta’s government. The...

I Got An Alert On Twitter That A Car Has Slid Into The Indian Ocean, John Wambua Mariams Husband

John Wambua, who lost his wife Miriam Kighenda and daughter Amanda Mutheu after their car plunged into the Indian ocean has come out to...