Communications Authority Director-General (DG) of the Ezra Chiloba, has been suspended. The board announced, under the leadership of Chairperson Mary Mungai, made the announcement on Monday evening.
Chiloba was suspended pending an investigation into alleged mismanagement of the staff mortgage scheme. In his place, Christopher Wambua has been appointed as the acting DG, starting from September 18, 2023.
Chiloba’s suspension is related to serious concerns regarding the staff mortgage scheme at the Communication Authority. the CA board found defaults amounting to Sh28.9 million in mortgages approved and granted without proper consideration of the contract terms.
Additionally, the Authority under Chiluba refinanced mortgages totalling Sh364.8 million for staff who lacked evidence of upgrades or improvements to their purchased or constructed houses.
A material variance of more than 20% in property valuation was discovered between government assessments and valuations contracted privately. This led to an understatement of loan balances for former staff members of the Authority.
The CA board’s investigation further revealed inadequate approvals of architectural plans for the construction mortgage facility, potentially exposing the authority to misuse of the facility and financial risks. It was also noted that the CA failed to secure timely Mortgage Insurance Protection advances for the properties in question.
In response to these developments, Prof. Edward Kisiang’ani, the Principal Secretary of the State Department of Broadcasting and Telecommunications, has expressed his intention to have the matter investigated.
Kisiang’ani says he has not been briefed on specific details that led to Chiloba’s dismissal. He plans to engage with the CA board to understand the grounds on which this decision was made.
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