)
)
Communications Authority Chairperson Mary Wambui on Monday evening announced that the board had resolved to suspend Chiloba and replace him with Christopher Wambua.
The news desk has obtained information about the report of the 9th Special Board Audit & Risk Assurance Committee and here are the five key reasons behind Chiloba's suspension.
The reports also said the board should suspend the directors of Human Resources, Legal Services, Finance and the Internal Auditor.
)
)
)
)
Defaults on mortgages totalling Sh28.9 million
One of the most alarming findings was the approval and granting of mortgages without proper consideration of the contract term, resulting in defaults amounting to Sh28.9 million.
This financial mismanagement raised serious concerns about the oversight and decision-making processes within CAK.
Refinancing mortgages without evidence
The committee discovered that mortgages amounting to Sh364.8 million were refinanced for staff who lacked evidence of upgrades or improvements to their purchased or constructed houses.
This revelation exposed a lack of due diligence and raised questions about the propriety of such financial transactions.
Material variance in property valuation
A material variance of more than 20% was found in property valuation between government assessments and privately contracted valuations.
Such a significant discrepancy indicates potential irregularities in the valuation process and calls into question the accuracy of financial reporting.
READ: Why ICT Ministry was not briefed prior to Ezra Chiloba's suspension
Understatement of loan balances
The investigation uncovered an understatement of loan balances for former staff members of CAK.
This discrepancy in financial records suggested a lack of transparency and accountability within the organization.
Inadequate approvals for construction mortgages
CAK was found to have failed to obtain adequate approvals for architectural plans and designs related to the Construction Mortgage Facility.
)
This lapse exposed the authority to potential abuse of the facility and financial risks.
Additionally, it was noted that the authority failed to undertake timely Mortgage Insurance Protection Advances for the property, further compounding the financial risk associated with the Staff Mortgage Scheme.