Details have emerged as to why the Suspended Communications Authority of Kenya Director General Ezra Chiloba could have been shown the door.
Nairobi Leo has learnt that the misuse of the Sh662.4 million CA Staff mortgage scheme could be the key reason embattled Chiloba was kicked out of office on Monday, September 18.
Special Board Audit and Risk Committee (BARAC) report considered by the CA board established that there were defaults to the tune of Sh28.9 million for mortgages approved and granted without consideration of the contract term of employees.
The report further brought to the fore a Refinancing mortgages to the tune of Sh364.8 million for staff who lack evidence of the upgrades and/or improvements for their purchased and/or construction houses
The board also learnt of Material Variance of more than 20% in Property Valuation between the government and privately contracted valuers
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The findings also noted that there was an understatement of loan balances for former staff of the Authority
The audit also established inadequate approvals of Architectural Plans/Designs for Construction Mortgage Facility therefore exposing the authority to abuse of the facility and financial risk.
It was also noted that there was a failure to undertake a timely Mortgage Insurance Protection Advance for the property.
The audit on the CA Staff Mortgage scheme was carried out on May 3, 2023, and a report was presented to the board on August 8, 2023.
Sources at CA told Nairobi Leo that the findings of the audit led to the suspension of Chiloba and the appointment of Christopher Mutua as the new director general in an acting capacity.
An internal memo by board chair Mary Mungai communicated the suspension on Monday following a board meeting.
"Following a meeting of the Authority’s Board held on 18th September 2023, resulting in the suspension of the Director General, I am pleased to inform all staff of the appointment of Mr Christopher Wambua as a Director General in Acting Capacity effective today until further notice. I trust that you will accord him the necessary support," Mungai said.
