Kisii Assembly advanced Sh186m loans without security, says Ouko

Wednesday, August 7th, 2019 00:00 |
Former Auditor General Edward Ouko. Photo/FILE

The Kisii County Assembly is on the spot for advancing  Sh186 million as housing loans to members without security.

Auditor General Edward Ouko in the latest audit report for the year ending June 30, 2018 and tabled in the Senate, said the House approved car and mortgage loans without putting in place mechanisms for recovering the money.

Fund regulations

Ouko said the fund did not have a charge register in place and the securities provided such as logbooks and title deeds were not charged to the loans as prescribed in the fund’s regulations.

“A review of application for the housing loans revealed that the applications for loans amounting Sh186 million were not adequately supported with relevant documents such approved copies of the designs of the proposed structure, bills of quantities, and official search of the titles to confirm ownership,” reads the audit report tabled in the Senate on Tuesday.

“These documents were not presented to the committee prior to the approval and disbursement of the requested loans,” read the report.

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