Panic has gripped Nairobi County Assembly following continued closure of the assembly’s car loan and mortgage scheme accounts.
The county MCAs are now calling for investigation into the closure of the accounts.
This is after it emerged that the MCAs and members of staff have for the past 15 months been unable to obtain loans from the fund.
Deputy Minority Whip and Kilimani MCA Moses Ogeto, through a statement before the House, raised concerns over the issue saying that the accounts located at Cooperative Bank had been closed with no substantive reason given to the MCAs for the closure.
Mr Ogeto claimed he had information indicating that the accounts were being used as money-making schemes by certain individuals he did not mention.
He alleged that insider information is that the funds have been diverted to make money for specific individuals through overnight lending.
“There are allegations that this scheme that was intended to improve the general welfare of members and staffs has been diverted to serve particular interests of some individuals,” said Mr Ogeto.
The ODM MCA noted that some county legislators now risk defaulting on repaying the car loan and mortgages.
“It is so sad when members are denied loans because some will have to default on their ongoing commitments,” he said.
Nairobi Assembly passed the Public Finance Management (Nairobi City County Assembly car loan and mortgage scheme fund) regulations 2017.
Under the scheme, every ward representative is entitled to a Sh3 million mortgage and Sh2 million car loan in accordance with a 2014 presidential directive.
The MCAs now want a probe opened into the saga by Public Accounts committee and Car Loan and Mortgage committee.
They want the two committees to investigate the reason behind the closure of the car loan and mortgage accounts and justifications that led to the opening of another bank account number 01141232417504, its signatories thereof, and the total amount currently in the said account.