Ezra Chiloba was suspended as the Director General of the Communications Authority on Monday after serving for two years.
At the time, details about the untimely suspension remained scanty but Christopher Wambua replaced him.
It has however emerged that the mismanagement of Kshs 662 million CA Staff Mortgage Scheme is what led to to Chiloba’s suspension and four other directors for Human Resources, Legal Services and Finance.
According to a report by the Special Board Audit and Risk Committee, following a meeting on August 8, the officials mismanaged CA staff mortgage scheme leading to the loss of Kshs 662 million.
“Valuers and Quantity Surveyors (QS’s) involved in professional misconduct of overvaluing properties should be reported to the professional bodies while staff found culpable of colluding with the valuers be sanctioned,” the report suggested.
In Chiloba’s case, it was found that Chiloba applied for a mortgage loan of Kshs25 million and approved for the loan himself.
The loan was intended for the purchase of property between Chiloba and one Jacob Simiyu Wakhungu.
Aside form that, Chiloba bought a house and a 7-acre piece of land, exceeding the 1-acre limit of the civil servant housing scheme requirement.
The report further states that the money was remitted to an account named Kitale Hilmost Ltd, which belongs to Chiloba.
A total of Ksh28,874,815.62 is said to have been defaulted since the right procedure was not followed during the loan application.
“Despite assurances from Management that there was no record of default or non-payment of the mortgage loans as shared in the Board meeting held on 3 May 2023, the audit exposed cases of default in mortgage repayment,” the committee further stated.
