HomeNewsBlunder That Made Mombasa County Lose Ksh 54M in Loans

Blunder That Made Mombasa County Lose Ksh 54M in Loans

Blunder That Made Mombasa County Lose Ksh 54M in Loans

On Tuesday, February 27, the Senate Public Investments and Special Funds Committee questioned Abdulswammad Sherrif Nasir, the Governor of Mombasa County, about the vanishing of Ksh54 million in loans granted in August 2022.

As per the committee, an examination report conducted by the Controller of Budget indicated that there were discrepancies in accounting for funds from the County Alcoholic Control Fund, County Elimu Fund, and County Consolidated Revolving Fund.

Furthermore, the Senate inquired about the County Consolidated Revolving Fund, which allegedly provided loans to a group of recipients without any documented repayment terms or collateral for the loans.

The Senate has criticized the county for not providing detailed financial reports, despite repeated requests from the CoB.

Senator Ledama Ole Kina from Narok scrutinized the county’s debt repayment process, demanding that the county furnish a comprehensive list of all individuals or entities benefiting from the loans.

“Ksh54 million has disappeared, and someone has to be responsible for it. Publish all the names of the beneficiaries and send a debt collector to recover the money,” stated Ole Kina.

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Furthermore, Senator Faki Mohamed from Mombasa raised concerns with the Governor regarding the county’s plan to recover the funds. In response, Abdulswammad explained that the county would have to seek assistance from a financial institution.

Regarding the County Alcoholics Drinks Control Fund, the county faced criticism due to the lack of required legislation to regulate and avoid unauthorized transfers to the County Revenue Fund.

The Elimu Fund came under scrutiny in the Senate, with lawmakers questioning the lack of provisions for its potential dissolution.

In defense of the county, Abdulswammad also clarified that Mombasa was abolishing the fund, describing it as no longer operating effectively.

“This fund is as good as dead. We are working on a new legislation that is going to repeal it. We have taken into account all the issues raised and the new regulations should be in place by June this year,” said the governor.

Additional questioning from Nominated Senator Tabitha Mutinda also sparked curiosity regarding the timing of the loans extended to the groups just before the elections.

Blunder That Made Mombasa County Lose Ksh 54M in Loans

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