Nairobi MCAs want car loan, mortgage accounts reviewed

Counties

Nairobi MCAs want car loan, mortgage accounts reviewed


Nairobi City Hall. PHOTO FILE | NMG

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Summary

  • Panic gripped the Nairobi County Assembly following the continued closure of the Assembly’s auto loan and mortgage program accounts.
  • County MCAs are now calling for an investigation into the closure of the accounts.
  • It was after that it emerged that MCAs and staff members have not been able to secure loans from the fund for the past 15 months.

Panic gripped the Nairobi County Assembly following the continued closure of the Assembly’s auto loan and mortgage program accounts.

County MCAs are now calling for an investigation into the closure of the accounts.

It was after that it emerged that MCAs and staff members have not been able to secure loans from the fund for the past 15 months.

Minority Deputy Whip and Kilimani MCA Moses Ogeto, in a statement to the House, raised concerns over the matter saying that the accounts at the Cooperative Bank had been closed without any substantial reason being given. was given to MCAs for closure.

Mr Ogeto claimed he had information that the accounts were being used for profit by some people he did not mention.

He alleged that inside information is that the funds were embezzled to earn money for specific people through overnight loans.

“There are allegations that this program which aimed to improve the general well-being of members and staff has been hijacked to serve the special interests of certain people,” Ogeto said.

The ODM MCA noted that some county lawmakers are now at risk of defaulting on the car loan and mortgages.

“It is so sad when members are denied loans because some will have to default on their current commitments,” he said.

The Nairobi Assembly adopted the 2017 Public Financial Management Regulations (Nairobi County Assembly Auto Loan and Mortgage Fund).

Under this program, each neighborhood representative is entitled to a mortgage of 3 million shillings and a car loan of 2 million shillings in accordance with a 2014 presidential directive.

The MCAs now want an investigation into the saga by the Public Accounts Committee and the Auto Mortgage and Loans Committee.

They want the two commissions to investigate the reason for the closure of the auto and mortgage credit accounts and the justifications that led to the opening of another bank account number 01141232417504, its signatories thereof and the total amount currently on said account.

Priscilla C. Carnegie