February 7, 2025

Investigation on Fraud in Administration of Former Machakos Governor

The past management officials of former Governor Alfred Mutua of Machakos are about to face an investigation by the anti-corruption agency. The investigation is related to fraud in bursary distribution and mishandling of car loan and mortgage funds.

The Auditor-General Nancy Gathungu’s report highlighted these anomalies for the fiscal year that concluded on June 30, 2021. The report suggested a possible collusion between the county officials and the bank.

![Sonko](https://investmentshoax.com/wp-content/uploads/2024/05/sonko.jpg)
![Mandago](https://investmentshoax.com/wp-content/uploads/2024/05/mandago-px.jpg)

Irregularities in Bursary Fund

Senate County Public Investments and Special Funds Committee Chairperson Godfrey Osotsi (Vihiga) clearly stated that this sort of fraud is unacceptable. The report showed that bursary fund management was lax, failing to take action against culpable individuals.

Current Governor Wavinya Ndeti noted that they found some bursary cheques’ amounts didn’t align with the expected figures during the reconciliation process. Hence, they requested the bank to provide certified proof of the receivers, details on who issued the cheques, and reasons for the inconsistencies.

There were also suspicions of improper fund distribution. In Wamunyu ward, despite having 285 applicants for bursaries, an unusually high number of 308 beneficiaries got the grants.

Misuse of Sh88.3m Funds

In the previous fiscal year, the auditor’s report pointed out that Sh88.3 million was spent on bursaries without providing proper details of the beneficiaries and the method for their selection.

Ms Gathungu’s report also shed light on the flawed memorandum of understanding between the county and SBM Bank. The agreement seemed skewed as it required the beneficiaries to open an account with the bank to be eligible for a loan. However, the interest earned from these accounts was used to cover fund administration expenses.

Until now, the administration has failed to set the criteria for distribution of funds. In response, current Governor Ms Ndeti has stated that her administration is taking steps to review the scheme thoroughly.

Frequently Asked Questions

What was the alleged fraud in the administration of former Machakos Governor?

In Alfred Mutua’s administration, certain officials allegedly indulged in bursary fraud and misused car loan and mortgage funds. The Auditor-General’s report suggests that they could have colluded with a bank, altering bursary checks and creating skewed agreements on fund management.

What was the issue with the bursary fund?

The audit report indicated that despite having fewer applicants, extra bursaries were awarded. Additionally, certain officials altered some cheques, which increased the funding amounts beneficiaries received.

What was the problem with the car loan and mortgage fund?

The county had a memorandum of understanding with SBM Bank, but the agreement was problematic. Beneficiaries had to open an account with the bank to qualify for loans, and interest earned from these accounts wasn’t properly utilised. Instead, it was used to cover fund administration expenses.