HomeNewsHustler Fund Under Scrutiny: No Funds Lost Despite Auditor General's Concerns, Says...

Hustler Fund Under Scrutiny: No Funds Lost Despite Auditor General’s Concerns, Says Cabinet Secretary Chelugui

Hustler Fund Under Scrutiny: No Funds Lost Despite Auditor General’s Concerns, Says Cabinet Secretary Chelugui

Cooperatives and MSMEs Cabinet Secretary Simon Chelugui asserts that no funds from President William Ruto’s Hustler Fund have been lost.

His comments follow concerns raised by Auditor General Dr. Nancy Gathungu, who highlighted inconsistencies and perceived transparency and accountability issues in the management of the credit fund.

During an interview on Citizen TV’s ‘The Explainer,’ Chelugui addressed these concerns, affirming the fund’s integrity and thorough handling of the Auditor General’s queries.

Chelugui referred to a June 2023 letter from the Auditor General, stating that all issues have been resolved.

He emphasized that the fund is secure and all financial matters have been clarified, with no losses incurred.

Chelugui mentioned that the Auditor General’s concerns were due to staffing delays, but these have been resolved, and they await further verification.

He also highlighted the Hustler Fund’s role in rehabilitating 8 million Kenyans previously listed with Credit Reference Bureaus (CRBs).

Chelugui explained that the Hustler Fund was created to address market failures caused by high rates from digital lenders and has since onboarded over 23 million Kenyans, with 18 million borrowing from the fund.

The Auditor General’s report linked issues at the Hustler Fund to data extraction errors, understaffing during its inception, and note numbering mistakes.

Dr. Gathungu issued a disclaimer opinion, citing management inconsistencies and the fund’s failure to provide financial statements for audit review, impacting transparency and accountability.

ALSO READ:

The Auditor General’s report also questioned the recovery process for exchange transactions, with 17,855,858 loan applications resulting in Ksh.32,015,962,276 disbursed but a remaining unpaid balance of Ksh.10,950,075,614 as of June 2023.

She found Ksh.259,026,553 held by service providers unverified due to insufficient documentation from the fund’s management.

Additionally, the report noted discrepancies in bank account signatories and specimen signatures, further complicating financial validation.

Further review showed the fund exceeded its loan limits, with Ksh.420,312,323 issued across 238,707 cases, surpassing the initial Ksh.219,615,242 limit.

The report also identified 5,070 ineligible loan recipients and instances where 11,213 borrowers received additional loans before repaying previous ones, totaling Ksh.161,931,703.

The Auditor General flagged 129,315 closed accounts holding Ksh.81,622,289, where repayments couldn’t be traced, indicating poor tracking and accountability.

Moreover, 867 instances of duplicate loan identity numbers processed 1,978 loans worth Ksh.477,928.

Hustler Fund Under Scrutiny: No Funds Lost Despite Auditor General’s Concerns, Says Cabinet Secretary Chelugui

MOST READ