City Hall, Nairobi. A parliamentary committee is investigating how the council borrowed a loan from Equity Bank at 10 per cent interest, which was later increased to 24 per cent. Photo/SALATON NJAU
What you need to know:
Local authorities and funds account committee gave City Hall officials until Tuesday next week to table the documents before it makes its findings to Parliament.
The directive follows the production of an original agreement by Equity Bank chief executive officer James Mwangi. The council through deputy Town Clerk Leboo ole Morintat maintains it cannot find its own original copies.
The team is also questioning why the agreement for the loan was signed by the mayor and the Town Clerk.
City Council of Nairobi (CCN) has been directed to produce the original letter of offer and the agreement it entered into with Equity Bank to secure a controversial Sh5 billion loan in April last year.
Local authorities and funds account committee gave City Hall officials until Tuesday next week to table the documents before it makes its findings to Parliament. The committee is chaired by Wundanyi MP Thomas Mwadegu.
The directive follows the production of an original agreement by Equity Bank chief executive officer James Mwangi. The council through deputy Town Clerk Leboo ole Morintat maintains it cannot find its own original copies.
“Apart from the photocopies we tabled before you earlier, we cannot find the originals and we seek more time,” Mr Leboo said. The council was first asked to provide the documents two months ago.
The committee is investigating how the council agreed with the bank for the loan charged at 10 per cent interest but which later increased to 24 per cent.
Thursday, ministry of Local Government Permanent Secretary, Karega Mutahi said there was a major crisis on projects of the CCN.
“Officers who dealt with these documents have denied that they saw them. It appears there was division or disagreement within the council at the time,” said Prof Mutahi.
Former Town Clerk Philip Kisia insisted that he signed the contract documents after the council legal department’s officer Joshua Aduma approved them.
Mr Mwangi who gave evidence to the committee on the loan said neither City Hall nor the Auditor General’s office sought the documents from the bank.
Mr Mwadegu ordered the council to ensure that Mr Aduma appears on Tuesday for questioning.
