Ten Nairobi MCAs exaggerated values of their cars to pocket Sh12 million from the assembly’s car loan and mortgage funds, the Auditor General has reported.
The scheme unearthed by Auditor General Edward Ouko in his 2017-18 audit findings showed the assembly gave out car loans far above the vehicles' values.
His audit report said that doctored reports were presented by Abraham Njihia (Woodley), Redson Otieno (Ngei), Elijah Stazo (Upper Savannah), Beatrice Gakuru (nominated), Eve Malenya (nominated), Fuad Hussein (Airbase), Lawrence Otieno (Sarang'ombe), Mark Mugambi (Umoja I), Charles Thuo (Dandora Area III) and Grace Muthami (nominated).
The altered reports were showed values far above those of the Automobile Association of Kenya.
The exaggerations reported by Ouko range from Sh178,000 to Sh2.1 million above the valuation report submitted by the AAK.
“The audit revealed a variance of Sh12,727,800 between the total amount of car loans issued to 10 members of the county assembly and the values indicated in valuation reports from Automobile Association of Kenya for their respective cars,” Ouko said.
“It is, therefore, evident that the loans issued to the 10 members of county assembly exceeded the values of their vehicles contrary to the provisions of regulation 17 (1) and (3) of the Public Finance Management (Nairobi City County Assembly Car Loan and Mortgage Scheme Fund) Regulations, 2017,” Ouko said.
Njihia pocketed Sh3,088,00 instead of the recommended Sh2,910,00 while Redson received Sh2,800,000 when he was supposed to get Sh2,530,000.
Stazo received Sh3,040,900 instead of Sh1,520,00. Nominated MCA Beatrice pocketed Sh2,824,000 though she was only entitled to Sh2,190,000.
Malenya adjusted the valuation to qualify for Sh 3million instead of Sh1,580,000. Fuad received Sh3,700,900 instead of Sh 1,550,000, while Lawrence got Sh4,350,000 when he was supposed to receive Sh2,290,0000, according to AAK valuation findings.
Mugambi, Thuo and Muthami received Sh3,250,000, Sh 2,824,000 and Sh3,430,000 instead of Sh1,320,000, Sh1,260,000 and Sh2,430,000, respectively.
The report was tabled before the Senate last week by House Majority leader and Uasin Gishu Senator Kipchumba Murkomen.
