Ezra Chiloba was among five Communications Authority (CA) officials disciplined over mismanagement of a Ksh662 million mortgage scheme, an internal report from the authority has revealed.
According to the report seen by The Kenya Times, an audit committee held a meeting on August 8 to deliberate on the management of a staff mortgage scheme.
In its report, the committee established that multiple irregularities marred the scheme and hence the recommendation for disciplinary action.
Among the irregularities cited in the report include a variance between the value of properties as derived by privately hired valuers and government valuers hired by the audit committee.
The committee reported a variance of 20% which according to CA’s regulations is above the standard acceptable variance.
Thus, the audit concluded that the valuation process was unprocedural and a result of dishonesty.
“BARAC noted a case of variance between government valuers and privately contracted valuers,” part of the report read.
Chiloba accused of clearing Mortgage defaulters
Further, the audit committee accused the Chiloba-led executive of irregularly clearing former staff members who have now defaulted on the mortgage scheme.
As part of the recommendations, the CA was asked to recover liabilities within the next 30 days and hold those responsible to account.
Also listed in the report was a case of understating loan balances.
According to the auditors, understatement points to gross negligence and, hence necessitating disciplinary action.
Other irregularities cited by the audit committee include inadequate architectural designs, and failure to take timely Mortgage Insurance Protection Advance for the property.
ICT PS’s take on Chiloba
Appearing in a televised interview on Monday, Principal Secretary in the ICT department Edward Kising’ang’i confirmed that he was privy to an ongoing disciplinary process at the CA.
However, the PS declined to divulge on the underlying issues in Chiloba’s suspension and instead noted that the CA board would issue a comprehensive report.
Upon Chiloba’s suspension, the CA appointed Christopher Wambua as the acting CA Director General.