Loan Records worth Sh3.9 billion disbursed through Uwezo Fund are missing

0

Auditor General Edward Ouko has said that a review of Uwezo Fund’s operations for the year ended June 2018 indicated that there are no documents on loans disbursed to at least three groups.

As a result, records of loans worthy Sh3.9 billion are missing and as a result making it hard to account for billions set aside to support SMEs.

And while majority of groups that have received the government loans have defaulted, Mr. Ouko indicated that debtors’ ledges indicating loans issued since inception and repayment records were also missing.

“There were also no comprehensive loan listings and or aging analysis in support of outstanding loans,” Mr Ouko said.

“Consequently, the accuracy, completeness, validity and recoverability of the unsupported and unaccounted for loans to group balance of Sh3,920,225,398 cannot be confirmed,” reads the audit report.

According to the Social Protection Department, 60 percent of the groups that received loans are yet to repay thus hindering more deserving groups to receive funds.

The Uwezo Fund is a flagship programme of Kenya’s Vision 2030 blueprint, which includes initiatives to enable women, youth and disabled persons access funds to promote businesses and enterprise at the constituency level and boost economic growth.

LEAVE A REPLY

Please enter your comment!
Please enter your name here