On Tuesday former IEBC Commissioner Roselyn Akombe made a shocking announcement that Ezra Chiloba’s latest misfortune could be as a result of being haunted by the ghost of the late IEBC digital manager John Msando.
Mr. Chiloba was unceremoniously axed from his state job a
In a recent report from the 9th Special Board Audit and Risk Assurance Committee (BARAC) Meeting held by the Communications Authority of Kenya (CA) on August 8th, 2023, startling revelations about the CA Staff Mortgage Scheme have come to light.
The report not only exposed severe flaws in the scheme but also led to the dismissal of CA’s CEO, Ezra Chiloba.
The Mortgage Scheme’s Troubling Findings
The internal audit exposed a series of systemic issues that have put the CA Staff Mortgage Scheme at significant financial risk. One of the most glaring problems was the absence of a Comprehensive Policy to govern the scheme. This critical oversight allowed a host of issues to fester.
One of the most alarming findings was related to property valuations. Private valuers were found to have grossly overvalued properties, inflating mortgage amounts. Such practices raised concerns of collusion and dishonesty.
Moreover, management failed to implement a prequalified panel of valuers as directed by the board, exposing the scheme to undue risk.
Mortgage repayment defaults, primarily by officers who had left the Authority, were a significant concern. These defaults were not addressed with the necessary urgency, leading to financial exposure that could have been avoided.
The report also pointed to the lack of clear roles and responsibilities in the governance and administration of the scheme. This lack of clarity contributed to the mismanagement of the mortgage scheme.
Accountability and Dismissal of CEO
Ezra Chiloba, the CEO of CA, bore significant responsibility for the issues uncovered in the audit. His actions, including securing a mortgage for himself while holding a position of authority and approving his loan application, were considered conflicts of interest and a breach of his obligations.
Chiloba’s purchase of property exceeding the required one-acre limit and the disbursement of funds to an account linked to him raised serious ethical and legal concerns. The report recommended disciplinary actions, citing gross misconduct and potential breaches of the law. There are reports that Chiloba will be arrested any time soon and prosecuted.
Accountability Beyond the CEO
The report didn’t stop at Chiloba; it identified others who played roles in the scheme’s mismanagement. Directors of HR, Legal Services, Finance, and the Internal Auditor faced accountability for their respective shortcomings. These included inadequate due diligence, failure to ensure insurance coverage, and understating loan balances.
Why the other directors were never fired, remains a mystery.