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Auditor General flags billions lost in unpaid car and mortgage loans by former MCAs and county staff, exposing a culture of impunity in managing revolving funds.
A new report by the Auditor General has exposed a looting spree in the counties. Billions of shillings meant for revolving funds—car loans and mortgages for MCAs and county staff—have vanished, with beneficiaries exiting office without repaying a cent.
The audit reveals that many MCAs who lost their seats in 2022 walked away with the money, treating the loans as "grants." Recovering the funds has proven impossible due to poor record-keeping and lack of collateral. "The logic was to empower leaders, but it became a slush fund," the report notes. The taxpayer is now left holding the bag for luxury SUVs and homes owned by individuals who are no longer in public service.
In some counties, the loan books are empty, yet no money was ever repaid. The Ethics and Anti-Corruption Commission (EACC) is being urged to swoop in, but the sheer scale of the default suggests a systemic failure of oversight in the devolved units.
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