Ezra Chiloba Off the Hook in CA Mortgage Scheme Fraud Probe Ahead of Vetting

Kenya’s Consul General to Los Angeles, USA nominee Ezra Chiloba is off the hook in the mismanagement of Staff Mortgage Scheme at the Communications Authority of Kenya (CA).

The Ethics and Anti-Corruption Commission (EACC) launched a probe into the allegations in September 2023.

But in a communique dated April 4, 2024, the anti-graft CEO Twalib Mbarak says there was insufficient evidence to support the allegations leveled against Chiloba who is facing MPs later today (Thursday) for vetting.

The matter, Mbarak says, has been closed “with no further action pursuant to Section 25A of the ACECA of 2003”.

“However, we recommend that the authority reviews its Human Resource Police and Procedure Manual dated February 2023 in line with the Communication Authority HCA Circular No 1Bof 2021 dated 23rd March, 2021,” Mbarak tells CA boss David Mugonyi.

EACC head of investigations Pascal Mweu demanded a number of documents from CAK in a letter dated September 28, 2023.

To facilitate the investigation, EACC sought originals of mortgage loan budget for FY 2021/2022 to 2023/2024, bank account statements for mortgage scheme for the period 2021/2022 to 2023/2024 and Internal Audit Report, said the letter.

Read: Ezra Chiloba Named Consul General to Los Angeles in Changes

The letter also asked then acting DG Christopher Wambua to provide National Treasury Audit Report, mortgage loan policy for CAK, mortgage loan book for CAK and authorized panel of valuers at CAK.

EACC also sought minutes of the Special Board Audit and Risk Assurance Committee dated 8 ‘August 2023, the mortgage loan application form for Chiloba and all attachments, title deed, search certificate, sale Agreement, details of the vendor, valuation reports, all correspondences in regard to the purchase and any other document related to the mortgage loan application.

A report of a ninth special Board Audit and Risk Assurance Committee (Barac) meeting held on August 8, 2023 indicates that Chiloba alongside nine others “fundamentally breached their obligations arising under the contract of service”.

Chiloba is accused of, one, applying for and self-approving a mortgage loan without exercising due process.

The loan was to reportedly facilitate the purchase of a property between Chiloba and another individual.

He is also said to have purchased a house and acquired land of seven acres beyond the allowed one acre limit under the Civil Servants Housing Scheme requirement.

On matters regarding the loan application process, the authority says no due diligence was exercised leading to the omitting of relevant information.

Read Also: State House Official David Mugonyi Replaces Chiloba As CA Director General

“The loan application was approved by a junior staff member and there is no evidence to support that fact that the junior staff member carried out requisite due diligence and advice management including but not limited to the relationship between the seller and the buyer and the size of the property,” read the report.

Questions were raised after it was noted that the authority remitted money to a bank account held by Chiloba under the company name Kitale Hilmost Ltd. who was also posed as the buyer.

“Further interrogation to confirm the identity of the seller vide a query through the Companies Registry revealed the sole director and shareholder of Kitale Hilmost Ltd as Ezra Chiloba Simiyu, who is also the buyer. These actions amount to an offence in accordance with Section 41 and 42 of the Anti-Corruption and Economic Crimes Act,” it read.

Chiloba is also accused of misconduct while in office.

“Being that the Director General is the Accounting Officer for the Authority, the conduct and integrity of the office holder when viewed against the provisions of Sections 11, 12 and 13 of the Leadership and Integrity Act is found to be in contravention of the same and in breach of the Code of Ethics which amounts to misconduct for which he may be subjected to disciplinary proceedings as per Section 45 of the Employment Act 2007.”