Two Nairobi county assembly watchdog committees have begun probing the recent closure of mortgage and car loan accounts for MCAs.
For the past 15 months, MCAs and assembly staff have been unable to obtain loans from the scheme's fund established in 2017, causing disquiet at the house.
The probe being carried out by the Public Accounts and Mortgage and Car Loan committees commenced after deputy Minority whip Moses Ogeto raised the issue last week during a plenary. The panels have two weeks to table a report.
Through a request for statements from the two committees, Ogeto noted that the accounts opened with Co-operative Bank had been closed and no substantive reason given.
"The assembly passed the Public Finance Management (Nairobi City County Assembly car loan and mortgage scheme fund) regulations 2017. However, there are allegations that this scheme, which was intended to improve the general welfare of members and staff, has been diverted to serve particular interests of some individuals," Ogeto said.
The Kilimani ward representative said he had information that the accounts were being used for a moneymaking scheme for unnamed individuals, much to the chagrin of MCAs.
"Insider information is that the accounts have been diverted to make money for specific individuals. It is alleged that our funds are being, or were, used for overnight lending.
"It's so sad when members are denied loans because some will have to default on their ongoing commitments," he lamented.
The city ward representatives have called on the watchdog committees to investigate the closure. They have demanded to know what led to the opening of another bank account number 01141232417504, its signatories, and the total amount it currently has.
They also want to know whether Co-operative Bank has been observing the prevailing Treasury bill rate since April 4, 2016.
