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Nairobi MCAs can’t account for Sh238m mortgage, car loans

The Nairobi City County Assembly cannot account for the entire Sh238 million assembly members got as car loans and mortgages.

The auditor-general’s report says that there is no evidence that reps bought cars.

Although the logbooks were to be retained by the bank, the report says there was no evidence that any bank had logbooks relating to the loans advanced.

Last year, President Uhuru Kenyatta directed that the reps be given car grants and mortgages.

Salaries and Remuneration Commission allowed them to use up to Sh2 million as car loans which was to be repaid at a three per cent interest rate within their term in office.

But when he appeared before the Public Accounts Committee on Wednesday, assembly clerk Jacob Ngwele denied the allegations saying they fully complied with requirements.

He said the salaries team did not give the assembly guidelines on the loans and mortgages and therefore members crafted their own regulations.

He accused the bank of not keeping records on the loans and mortgages as they were expected to maintain all records on individual borrowers.

The committee also raised questions on the Sh1.7 million imprest issued to seven reps and one officer to attend the London Marathon for four days as there were no invitation letters approved by the Speaker or the Clerk.

However, in defence, Mr Ngwele said since the event was organised by the First Lady, all approvals went through her office.

Other accusations included payment of vouchers worth Sh35.1 million for domestic and foreign travel for officers and reps without supporting documents.

The clerk said the assembly had pre-qualified two tour companies to provide foreign and domestic travel services.