The  National Assembly Public Investment Committee on Commercial Affairs and Energy met officials of the Information and Communication Technology (ICT) Authority who appeared before the Committee to provide responses to audit queries arising from the Auditor General report for Financial Years 2018/2019 to 2020/2021.

The Committee chaired by Hon. David Pkosing (Pokot South) wanted an explanation on the non-recovery of outstanding Pasha loans of Kshs 45, 193,389.

According to the Auditor General’s report, the balance represents loans advanced to entrepreneurs to set up information hubs and was to be repaid within nine years.

“The balance is in arrears and there has been no collection during the year under review that is Financial Year 2018/2019, additionally, there has been no interest charged on the revolving fund balance even though the loan has remained unpaid for twelve months,” noted Hon. Pkosing. 

While responding to the Committee, the Chief Executive Officer Mr. Stanley Kamaguyu said the Authority had entered into a contract with Family Bank to manage the disbursement, repayment and recovery of the disbursed funds.

“The fund that went to Pasha loans was a grant from the World Bank. Vetting for the suitable institutions to undertake the management of the funds was done and Family Bank was settled on. From our contract the bank was assigned the responsibility of protection of the money from disbursement to repayment stage,” Mr. Kamaguya told the Committee.

Members wanted to know why the funds were not placed under security and how the beneficiaries were settled on noting that there was regional imbalance in disbursement of the funds. 

Mr. Kamaguya in his response told the Members that the beneficiaries of the fund were drawn from the 210 electoral constituencies as they were back then.