Vihiga Governor Told to Recover Sh1.9 Million Unpaid Staff Loans
The County Public Accounts Committee (CPAC) has directed Vihiga Governor Wilbur Ottichilo to surcharge county accounting officers over Sh1.9 million given to staff as salary loans but never recovered.
The directive follows findings in the Auditor-General’s report for the 2024/25 financial year, which show that the loans were issued between 2015 and 2017, but only Sh85,000 has been repaid to date.
According to the report, the loan beneficiaries included four former county executive staff, one current staff member, one deceased former employee, three sitting Members of the County Assembly (MCAs), and one former MCA.
The Committee expressed concern over the poor recovery of public funds and demanded immediate action from the county government.
Appearing before the Committee, Governor Ottichilo said recovery efforts had been affected by the loss of key financial records after a building housing county documents was destroyed by fire.
He added that some individuals who allegedly received the loans had denied taking the money and demanded proof from the county government.
“The County Attorney wrote to the individuals, and they responded by asking the county to provide evidence that they had borrowed the funds,” the Governor told the Committee.
Senator Okong’o Omogeni questioned whether the officers who approved the loans were still in office and what action had been taken against them. He also criticised the County Attorney for failing to pursue recovery for nearly 10 years, warning that the matter may now be time-barred under the Limitation of Actions Act.
“Why was there such a long delay in recovering this money?” Senator Omogeni asked, raising concerns about possible negligence.
Senator Johnes Mwaruma dismissed claims that lost records could justify failure to recover the funds, noting that the money was paid directly into beneficiaries’ bank accounts.
However, the Committee was informed that legal recovery through the courts was no longer possible because the time allowed under the law had lapsed.
“You are pursuing a futile exercise because court action will not produce results,” Senator Samson Cherarkey said.
Citing the Public Finance Management Act, the Committee said responsibility lies with accounting officers who approved the loans. Senator Moses Kajwang’ said public finance laws allow for surcharging officers who authorize advances and fail to recover them.
“The solution lies in public finance regulations,” Senator Kajwang’ said. “The accounting officers must be surcharged.”
The Committee also ordered the Governor to take action against officers who approved the release of Sh5 million to finance a housewarming party at the residence of the Vihiga County Assembly Speaker.
During a meeting with the county executive on Monday, CPAC expressed shock that the county loaned money to the Assembly despite serious financial challenges.
The Committee described the spending as immoral and unjustified, noting that Vihiga County’s pending bills stood at Sh1.7 billion as of June 30, 2025.
“There was absolutely no justification for the housewarming or the Sh5 million expenditure,” Senator Kajwang’ said.
He directed the Governor to discipline those responsible and recover the money if necessary.
“You must go back and address this illegality. If need be, recover the funds,” he said.
Governor Ottichilo said he had already identified the issue and planned to take action after consulting the Committee.
“I had planned to act, but I first wanted to hear the views of the Committee,” he said.
While the Governor said he could not fully account for how the County Assembly used the funds, he claimed part of the money was spent on activities linked to the Speaker’s house-opening ceremony.
The Committee rejected the explanation, pointing to descriptions in the county’s financial records that showed how the funds were spent.