Five county assemblies are on the spot for over unrecovered mortgages and car loans according to Auditor General Edward Ouko.
According to Ouko, 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.
In the report filed in a senate committee, indicts County Assemblies of Busia, Nairobi, Kiambu, Nyamira and Kwale on the questionable 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.
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.
This is not the first time MCAs are on the spot for gross accusations.
Last month 227 Members of County Assemblies were being investigated by the Ethics and Anti-Corruption Commission for abuse of office, fighting in the assemblies and falsification of documents.
And the Assets Recovery Agency is also targeting unexplained wealth as they seek orders to freeze accounts and recover assets of county governments officials -making suspicious transactions and investments.
The MCAs and county employees involved in dubious financial deals, were cautioned they can’t erase electronic footprints such as M-Pesa and bank transactions that can be traced even seven years later.
MPs and MCAs commonly receive 10 per cent kickbacks on CDF and county government projects meant to improve transport, education and health — devolved functions.
They further show that the leaders mandated to protect taxpayers’ funds work closely with county and CDF employees to award 27.9 per cent of the projects to friends and cronies.
Three weeks ago EACC arrested two members of the Nairobi county assembly Jared Okoth (Mathare North) and David Mberia (Karen) on allegations of bribery.
They allegedly demanded a Sh1 million bribe from the owners of Kiragu Waichahi School, which is in Pumwani Ward of Kamukunji Constituency.
The three are members of the county’s Culture and Social Services Committee, with Mr Njihia as the chairperson.
They are said to have demanded the bribe in order to prepare a favourable report for the assembly, to counter their previous allegation that a private school in Eastleigh was illegal.