All the 87 Kakamega MCAs have defaulted repaying the Sh440 million mortgage and car loans advanced to them by the county government.
Each MCA received Sh3 million for mortgage and another Sh2 million car loan.
They were supposed to repay the facility in 32 months, ending next month at a three per cent interest.
Documents seen by the Star indicate the assembly had recovered only Sh150 million by end of November last year. “The money was deposited in lump sum to Family Bank by the county executive and we were only asked to administer the fund,” assembly clerk Patrick Kamwesa said.
He said only one MCA had paid installments for 31 months and could clear the loan by next month.
Lower Western IEBC coordinator Solomon Mudanya yesterday said it is not clear whether the Credit Reference Bureau is one of the agencies that will clear candidates to vie for seats. “It may be in the background, but not prominently featured. It, however, depends on whether the one who gave the loan has complained to the Bureau, because there must be a complainant that a given individual is not servicing the loan,” he said.
Kamwesa yesterday said some MCAs are waiting for their gratuity payment to offset the loans. “We will be able to recover part of the money through the severance benefits, because it is us to pay,” he said.
However, it emerged that all the MCAs had Sh5 million wired in their accounts even without applying.
Some MCAs resisted surrendering their car logbooks and title deeds for the mortgage to the assembly to be charged on the loans, arguing they should be treated as grants instead.
Internal sources told the Star that auditors arrived at the assembly last week to scrutinise administration and repayment of the fund.
Assembly minority leader Titus Kwomah said the facility was hurriedly negotiated and that the time frame given for them to repay was short.
“In fact, the MCAs are trying their best. We have put measures in place to ensure that the cash is recovered since this is public resources,” he said.
Kwomah said the arrangement between the bank and the assembly was that the MCAs be allowed to repay the money by December this year.
“Now there is a circular that has enhanced the facility to Sh8 million repayable in seven years,” he said.