Kachapin, deputy on the spot over defaulting Sh27m loan

Friday, October 25th, 2019 06:40 | By
Former West Pokot Governor Simon Kachapin and his deputy governor Titus Lotee. PD/FILE

Former West Pokot Governor Simon Kachapin and his deputy governor Titus Lotee are on the spot for defaulting to pay a cumulative Sh27 million loan advanced to them for purchase of cars.

In his latest audit report, immediate former Auditor General Edward Ouko says Sh15 million and Sh12 million was disbursed to the former county boss and his deputy respectively.

However, as at June 30 last year, there was no evidence produced that Kachapin, now serving as Chief Administrative Secretary in the ministry of Energy nor his deputy then, that the loans were recovered from the two officers as required by public finance management (PFM) Act.

“Additionally, the purchase agreement together with the logbook for the cars were also not provided for audit review contrary to section 10(2) of the PFM Act,” says Ouko report.

It adds, “In  view of the foregoing, the management is in breach of the law and in the event of default, there is a possibility that loans of Sh27 million may not be recovered.”

Further, the auditor has queried Sh1.5 million advanced in favour of a county employee namely James Pkiyach Lorna for the purchase of a motor vehicle—Toyota Hilux registration no KBD 146W owned by Solomon Kiplagat Mibey.

Against law

According to the auditor, a review of the car loan application form confirmed that the application form was not processed and signed by the car loan management as required by law.

“There was no authorisation of funds transfer by the fund administrator and there was no hire purchase agreement as required by the regulations,”

It was further noted that the logbook was not registered jointly between the county government and James Pkiyach’s but instead it was in the name of Solomon Kiplagat.

In addition, the funds were transferred to James Pkiyach’s account instead of the account of the seller.

It was also noted that the vehicle was not comprehensively insured as required by regulations and it was not availed for physical verification.

“In the circumstance, the management was in breach of the law and the propriety of the amount Sh1.5 million disbursed for the purchase of a motor vehicle could not be confirmed,” said Ouko.

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