Suspended Communications Authority of Kenya (CA) Director General Ezra Chiloba has resigned, two years after his appointment to the position.
The Authority’s Board of Directors said Chiloba resigned on Wednesday 18th 0ctober 2023 through a letter to CA Chairperson. “On behalf of the Authority, I wish the outgoing Director General success in his future endeavours and appreciate his valuable contribution to the organization and the wider ICT sector,” said CA Board Chairperson, Mary Mungai.
Chiloba and other top officials of the Communications Authority of Kenya face allegations of mismanaging the Staff Mortgage Scheme.
Director General, Director of Human Resources, Director of Legal Services, Director of Finance, and the internal auditor are on the spotlight over their actions which exposed the scheme to a number of risks.
A summary finding of the Special Board Audit and Risk Assurance Committee (BARAC), discovered failure by management to put in place a Comprehensive Policy Manual to guide in the Administration of the CA Staff Mortgage Scheme, exposing to the authority to financial loss.
The report also found staff mortgage being approved and granted without consideration of the contract term and/or term of service, leading to loan default amounting to Sh28,874,815.62.
According to the findings, the management also failed to implement a board resolution that required the authority to have a list of prequalified valuers leading to over-valuation of properties.
The investigation report found issues with the approval of a mortgage loan to Chiloba, which it says was done by a junior officer.
“Disbursement of the loan of Shs 25,000,000 to Kitale Hilmost LTD. A Company Search with the Business Registration Bureau revealed that the seller entity is owned entirely, as the sole shareholder and the sole director, by Ezra Chiloba Simiyu, the Director General who is also the buyer in this case. This is reasonably construed to be demonstrative of an intent to defraud the Authority,” the report says.
Chiloba is also accused of failure to insure property under the scheme for staff who exited service, negligence of duty, failure to undertake due diligence on transactions between the seller and the buyer and failure to undertake timely mortgage insurance protection advance for the property.
Christopher Wambua has been serving as Director General in an acting capacity since Chiloba’s suspension on 18th September.