An audit report on management of a staff mortgage  scheme has shed  more light on why Communication Authority of Kenya Director General Ezra Chiloba was yesterday suspended. The audit showed how former and current staff of the authority have abused the scheme, leading to loss of millions worth of money. This was mainly through sourcing of private valuers who overstate the value of properties causing the authority to loan out more than  40 million to staff.

The report recommended explicit disciplinary actions against Ezra Chiloba for the gross abuse of the scheme  adminstration. The report noted that in 22/23,Mr Chiloba applied and self approved a loan to facilitate the  purchase of property without subjecting the transactions to interrogation and approval by a higher authority.

Mr Chiloba is also said to have violated the civil servants housing scheme by purchasing a house and land of 7 acres, contrary to the one acre limit. The report also noted that the loan was approved by a junior staff member, who may not have carried out due diligence. This is because the 25 million loan(used to purchase house and 7 acre land) was remmitted to an account held at equity bank in the name of Kitale Hilmost ltd which is owned by Ezra Chiloba. This therefore makes Chiloba both a buyer and seller, contrary to  section 41 and 42 of the anti-corruption and economic  crime act.

Ezra Chiloba is also being accused of negligence of duty due to CA failure to higher prequalified valuers and quantity surveyors in the management of the mortgage scheme, exposing  the  authority to the loss of money by failing to provide overall management.