83 MCAs risk legal action over unpaid car loans and mortgages
Panic has gripped former Kakamega MCAs and representatives who were re-elected after they got demand notices to repay car loans and mortgages amounting to Sh270 million.
Clerk of the County Assembly Patrick Kamwessar has written to 83 former and re-elected representatives to repay loans advanced to them in 2014 or face legal action.
The ward reps were expected to have completed repaying the loans before the lapse of their term of office on August 7, 2017.
In a letter dated March 19 Mr Kamwessair said: “Please note that your failure to repay the aforementioned loan balance is unlawful and it inevitably attracts severe penal consequences.”
He warned that names of the defaulters would be forwarded to the Credit Reference Bureau for blacklisting.
Ward Reps, who lost their seats in the August 8, 2017 polls, are the hardest hit and have been trying to raise money from other sources to repay the loans.
Each of the 87 county representatives, including nominated MCAs were advanced Sh2 million for car loans and Sh3 million for mortgage. Forty-five ward representatives failed to defended their seats and are struggling to raise funds to clear their loan balances.
Mr Kamwessar had, in an earlier interview, said the loans were to be repaid within 32 months.
He said some of the county reps had surrendered title deeds and car log books that were deposited as security.
Some defaulters promised to repay using gratuity payments awarded to them by the High court last year. Each of the MCAs is expected to receive Sh1.7 million.
“A good number of the MCAs have loans of up to Sh2 million. The last option they have is to forfeit their gratuity and allowances to enable the county assembly make a full recovery of loans,” said Mr Kamwesser.
County reps who retained their seats could face tough times including missing out on the privileges accorded to them until they repay outstanding loans.
Mr Kamwessar said the MCA with the highest loan owed Sh4.9 million.