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Auditor raises concern over delay in loan repayment

Counties in the North Rift could lose millions of shillings in unpaid mortgages, car loans and outstanding imprests given to ward reps and the executive.

The latest report by Auditor-General Edward Ouko indicates that MCAs and executives in Elgeyo-Marakwet are at risk of defaulting on payment of Sh53 million advanced as mortgage and car loans when their term expires next year.

Mr Ouko expressed concern at the slow repayment rate of between Sh38,878 to Sh145,416 per month as well as improper valuation of land and motor vehicles put up as security for the loans.

The 2014/15 financial year report further questions how the county government will recover outstanding imprest of about Sh12.2 million from the officers.

Mr Ouko says Turkana failed to provide an audit review for the Sh150 million advanced to MCAs in car loans and mortgages.

Mr Ouko questions how the county government utilised Sh4.5 million meant for fuel and a further Sh188 million for the County Emergency Fund.

“The financial statements were not made available as at June 30, 2015,” says the report.

In Uasin Gishu, imprest of about Sh11.5 million had not been recovered from defaulting officers while some were issued with additional cash of Sh9.6 million.

While the county government budgeted the Sh3.5 billion it received for development, actual expenditure was Sh2.7 billion while returns to the Auditor-General showed Sh2.4 billion.

The Baringo County Government, Mr Ouko says, had a revenue collection shortfall of Sh61 million, with a balance in plot rent income estimated at Sh17 million against a projected of Sh78.6 million.

The wage bill increased from Sh1.5 billion in 2014 to Sh1.9 billion in 2015, representing 51 per cent of total revenue.

Mr Ouko wants an employment freeze to sustain service delivery.

The Nandi County Government is on the spot after it paid more than Sh461 million for projects that were not specified or indicated as spot improvement.

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