Nairobi MCAs given three weeks to hand over logbooks
Nairobi City County Assembly Speaker Alex ole Magelo (left) and Clerk Jacob Ngwele at a press conference at the Speaker's office in Nairobi on June 27, 2014. PHOTO | PHOEBE OKALL | NATION MEDIA GROUP
What you need to know:
- Ward Representatives received Sh254m for cars but some did not surrender papers to bank handling funds
A Senate team has given Nairobi Members of County Assembly (MCAs) three weeks to surrender their logbooks as security for the Sh254 million car loans they received or be surcharged.
Nairobi City County Assembly Speaker Alex ole Magelo had on Thursday asked the Senate’s Public Accounts Committee (PAC) to give the ward reps more time to hand over the documents.
Mr Magelo, however, could not give the exact number of MCAs who surrendered log books as security to Family Bank, which is administering the loans. The funds were provided by the county government.
“The county assembly has tried to summon Family Bank officials to give a clear record of those who have handed over logbooks but have failed to turn up,” said Mr Magelo.
The Speaker said there had been a problem initially as the County Assembly Service Board was under pressure from MCAs to give them the money. He said the money was, as a result, given without security.
Mr Magelo said the assembly, however, rectified the mistake and insured the loans in case the members failed to repay.
“All the loans have been insured in case of death, disability or loss of a seat. The fund is, therefore, not exposed to any risk,” said Mr Magelo.
The Speaker said the MCAs had been impatient due to delays in the release of the money. He said there were efforts to come up with regulations as per guidelines set by the Salaries and Remuneration Commission (SRC), which authorised county governments to set aside funds for the cars at a three per cent interest rate per annum on a reducing balance.
On Wednesday, Minority Leader Abdi Guyo told members to give their logbooks to their respective leaders, a move that was objected to.
Nairobi West Ward Rep Maurice Gari Otieno said members wanted a special sitting to discuss the matter before they could hand over the log books. He said some members did not get the whole amount of Sh2 million entitled to each, hence could not buy the cars. He said the members will risk being surcharged if they do not surrender the logbooks as expected.
The car loan is supposed to be repaid within an MCA’s term in office.
The loans are among the benefits in a deal the reps struck with the SRC to resume duty in November 2013 after a strike.
