Queries over Sh1.9bn civil servants car loans

Auditor-General Edward Ouko. FILE PHOTO | NMG

What you need to know:

  • Public servants in grades S, T, U get Sh4 million while those in grades P, Q and R have access to Sh3 million.
  • Those in grades K, L, M and N are entitled to Sh1.5 million while civil servants in grades G,H,J and equivalent grades in the public service access car loans of up to Sh800,000.
  • Officers in grades A,B,C,D,E,F and equivalent  grades  in the public service can borrow up to Sh600,000.

Auditor-General Edward Ouko cannot vouch for the existence of Sh1.9 billion that was put in a special central bank account to offer car loans to civil servants.

Mr Ouko said the amount wired to the account had not been supported by a bank reconciliation statement and certificate of bank balance as at June 30, 2016.

The funds were disbursed in two tranches between 2015 and 2016 and meant for lending to civil servants at an annual interest of three per cent.

“Under the circumstances, completeness, existence and accuracy of the balance of Sh1,985,000,000 cannot be confirmed,” Mr Ouko said in an audit of the State Officers and Public Officers Motor Car Loan Scheme Fund.

Mr Ouko said the fund was established under legal notice No 195 of September 2015 with an initial capital of Sh1 billion, an additional Sh985 million was credited to the fund account at CBK in May 2016, bringing the total to Sh1.985 billion.

“However, the receipts are not reflected in the statement of income and expenditure which instead reflects nil receipts for the year ended June 30, 2016,” Mr Ouko said.

Public servants are entitled to access cheap car loans after the Salaries and Remuneration Commission issued a circular in December 2014 setting the car loans at between Sh600,000 and Sh10 million, depending on the grade of an individual.

The duration of the car loan scheme is five years. Cabinet secretaries, the Attorney-General, Chief of Defence Forces, governors and the Auditor-General are major beneficiaries of the scheme. This category is entitled to a maximum of Sh10 million, while principal secretaries, chair and members of independent commissions and Controller of Budget are entitled to up to Sh8 million.

Can borrow

The Director-General of the National Intelligence Service, Inspector-General of Police, Vice-Chief of Defence Forces, commanders of Kenya Army, Kenya Navy and Kenya Air Force and Director of Public Prosecutions can borrow up to Sh6 million to buy personal cars.

The Registrar of Political Parties, secretaries of independent constitutional commissions, deputy governors, chief executive officers of government agencies, deputy IG, director of Criminal Investigations Department are entitled to Sh5 million.

Public servants in grades S, T, U get Sh4 million while those in grades P, Q and R have access to Sh3 million.

Those in grades K, L, M and N are entitled to Sh1.5 million while civil servants in grades G,H,J and equivalent grades in the public service access car loans of up to Sh800,000.

Officers in grades A,B,C,D,E,F and equivalent  grades  in the public service can borrow up to Sh600,000.

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